February 23, 2018

Investment One eyes one-stop investment services

Investment One eyes one-stop investment services

The regulatory regime of the Central Bank of Nigeria (CBN) that redirected Nigerian deposit money banks to core banking activities created challenges and opportunities.

CBN’s Scope of Banking Activities and Ancillary Matters No 3, 2010 requires banks to fully concentrate on core banking functions. It requires banks to either sell non-core banking businesses or form a holding company to hold such non-core banking businesses including activities such as insurance, asset management and capital market operations.

Most banks, including Access Bank Plc, Diamond Bank Plc, Fidelity Bank Plc, Guaranty Trust Bank (GTB) Plc, Skye Bank Plc, Sterling Bank, Zenith Bank, Unity Bank and Wema Bank chose to divest from non-banking subsidiaries. Five banks including First City Monument Bank (FCMB) Plc, First Bank of Nigeria (FBN) Plc, Stanbic IBTC Bank Plc, United Bank for Africa (UBA) Plc and Union Bank of Nigeria (UBN) Plc have adopted the holding company structure, which separates core banking entity from other entities as subsidiaries under a single holding company.

Altogether, restructuring banks have had to divest from about 80 subsidiaries. The challenges of such massive restructuring included divestments, spin-offs, changes in boards and shareholdings, delisting, listing, relisting, new strategic business plan, rebranding and several other anxious concerns that come with divestment, acquisitions and mergers. The new regime meanwhile created several opportunities too including new investments, prospects of improved professionalism, improved corporate governance and more importantly, financial sectors’ stability.

However, the main challenge is ironically the main opportunity for the newly divested entities-standing alone after several years of group structure and comfort. For thriving erstwhile subsidiaries, the divestment was an opportunity to scale up and ‘live their visions’. But for others, it was a change too hard to muster.

Investment One Financial Services Limited, the emergent company from the sale of erstwhile GTB Asset Management Limited (GTBAM), knows the challenges but rather sees opportunities in the changing landscape of investment services. With eyes on gains and the future of the new entity, GTBank had opted for management buy out (MBO) as divestment vehicle for GTBAM. Investment One is now owned by management and staff of the company and few select investors that share the philosophies of excellence and service that form the core values of GTBank and its former subsidiaries, the pedigree upon which Investment One is building on.

NIGERIA   Investment One eyes one-stop investment services .. NAIJA INVEST

NIGERIA Investment One eyes one-stop investment services .. NAIJA INVEST

With three acquisitions, three high-profile approvals for new functions and many awards in the past 12 months, Investment One is arguably the fastest growing investment company. In the latest acquisition, regulatory filing showed Investment One has acquired 99.9 per cent equity stake in Kakawa Asset Management Ltd (KAML), a former subsidiary of Kakawa Discount House Limited. The new acquisition brought with it complementary investment management expertise and products. Established in June 2004, KAML is registered by Securities and Exchange Commission (SEC) as a corporate investment adviser and fund manager and it is also dealing member and stockbroking firm at the Nigerian Stock Exchange (NSE). Over the years, it has established a niche as a bespoke provider of investment solutions and shared a common pedigree with Investment One through its affiliation to GTBank.


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