Fundamental to the success of any growth strategy is the ability to make tradeoffs and prioritise the right set of initiatives at the right time. The Group has defined three growth 'horizons' over which it intends to broadly sequence growth priorities, as illustrated in the above diagram. Given the initial growth trajectory of new businesses and the degree of uncertainty in African markets, prudence dictates that the Group should plan over a maximum of a five-year timeframe.
Horizon 1: Consolidate in Nigeria (2010)
In 2010, the focus will be to consolidate and leverage the Bank's strengths and present advantages, to firmly entrench its position as the undisputed market leader in Nigeria. In addition to continued accent on organic growth, the Bank will explore opportunities for local market mergers or acquisitions, where strong business and shareholder value justification exists. The Bank will also aggressively drive its change agenda with a strong emphasis on the ongoing operations transformation. At both the Group and Bank level FirstBank will restructure internally for growth, organising around Business Groups at the Group level and around market segments at the Bank level (discussed further below).
Horizon 2: Diversify Group and transform Bank (2011–2012)
Having established a strong platform in 2010, the Bank will fast-track its transformation in 2011 and 2012, with a view to achieving leadership across a range of operational, financial, customer and other metrics. During this period, the Group will also focus on scaling up its investment banking/ asset management and nascent insurance businesses, while also commencing SSA international expansion in earnest.
Horizon 3: Build scale internationally (2013–2014)
More attention will be paid in 2013–2014 to building scale in international subsidiary banks. Substantively, the Group envisions a strong emphasis on driving increased cross-selling and synergy capture across the international and multibusiness line network, including the potential for Group shared services functions that service international locations. Continued strong growth is anticipated in the investment banking/asset management and insurance sectors, towards these subsidiaries attaining market leadership domestically. More specifically, we expect the investment banking/ asset management franchise to become internationally competitive with operations in a few select financial centres for distribution (e.g., London, Johannesburg), to complement the SSA locations where most deal origination will occur.
