The banking sector is so vast that there are a lot of subsections in the industry each having its own specific issue that it will handle. Merchant Banks are one of the meant banking systems in the world. There are mortgage Banks, government Banks, Investment Banks, Commercial Banks among others. However, the center of attention on this post will be the merchant Bank. All you need to know about merchant Banks in Nigeria, as well as the best 5 Merchant Banks in Nigeria.
Some people often get confused as to the difference between merchant Banks and mortgage Banks since they primarily focus on loans. The major difference between both types of banks is that mortgage Banks deal with mortgage loans, i.e. relating to land and property. Whereas merchant Banks primarily focus on commercial loans, i.e. relating to investment and commerce. Sometimes merchant Banks are referred to as investment Banks, they let you manage your financials from the conception stage to execution, weighing all risks involved.
Merchant Banks In Nigeria
Merchant banks focus on wholesale and investment banking where you have advisory services, wealth management, asset management, debt capital markets, and equities. These services are still very rudimentary in Nigeria considering the country is still developing. There are a total of five, 5 Merchant Banks across Nigeria according to the central bank of Nigeria, (Bank for bankers).
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Best 5 Merchant Banks in Nigeria
- Coronation Merchant Bank
- FBN Quest Merchant Bank
- DSH Merchant Bank
- NOVA Merchant Bank
- Rand Merchant Bank
Merchant Bank in Nigeria
1. Coronation Merchant Bank
The bank was initially founded as Associated Discount House Limited (“ADHL”) in 1993 by a consortium of reputable financial institutions. They received their license for operation through Central Bank of Nigeria to provide liquidity for sovereign debt notes and money market instruments.
- Date of establishment: 1993
- Authorization: Regional
- Headquarters: 10 Amodu Ojikutu St, Victoria Island, Lagos.
- Total number of branches: 27
- Official website: www.coronationmb.com
- Contact email: mmanhq@fmda.com.ng
2. FBN Quest Merchant Bank
In 2014, FBN Holdings Plc acquired 100% equity in Kakawa Discount House Limited.
Subsequently secured approval to commence merchant banking operations as FBN Merchant Bank (now FBNQuest Merchant Bank).
The acquisition served as a strategic fit into the FBN Holdings portfolio. This also created an institution with a stronger balance sheet and access to a wider universe of funding sources.
- Date of establishment: 2014
- Authorization: International
- Headquarters: 10, Keffi Street, Off South West, Awolowo Road, Ikoyi 101233, Lagos
- Number of branches: 3
- Official website: FBNQuest.com
- Contact email: info@fbnquestmb.com
3. DSH Merchant Bank
First Securities Discount House Limited, the precursor to FSDH Merchant Bank Limited, was incorporated in June 1992 as the first discount house to operate in Nigeria. In the new era, FSDH Merchant Bank Limited was one of the first companies to be granted a merchant banking license in the country.
Over the years, the FSDH Merchant Bank has become a financial services supermarket that delivers expert financial services within Nigeria and to select clientele, in order to create long term sustainable wealth. The bank has one of the best ROI in Nigeria today.
- Date of establishment: 1992
- Authorization: National
- Headquarters: 1/5 Odunlami St, Lagos Island, Lagos
- Number of branches: 1
- Official website: www.fdshgroup.com
- Contact email: info@fsdhgroup.com
4. NOVA Merchant Bank
Also on the list of merchant banks in Nigeria is the NOVA merchant financial institution. The banks products and services cover Corporate Banking, Investment Banking, Advisory Services, Securities, Wealth & Asset Management.
They target private and public sector clients in addition to private individuals. Their main focus is on the Oil & Gas sector, Commodity & Agricultural business, Utility & Infrastructure, Fast Moving Consumer Goods, Trade & Services ,and Financial Institutions. They have a team of talented professionals to drive the next wave of banking revolution in financial services.
- Date of establishment: 2018
- Authorization: Regional
- Headquarters: 23, Kofo Abayomi Street, Victoria Island, Lagos. Nigeria.
- Total number of branches: 2
- Official website: www.novambl.com
- Contact email: info@novambl.com
5. Rand Merchant Bank
RMB Holdings Limited (RMBH), previously known as Rand Merchant Bank Holdings, is a South African diversified financial services holding company.
RMB Holdings traces its roots from Rand Consolidated Investments (RCI) and Rand Merchant Bank that were founded in 1977 and 1968 respectively.
The bank generates Net income Increase ZAR: 7.77 billion (2015), Total assets worth 36.52 billion (2015), Total equity worth 35.17 billion (2015).
Date of establishment: 1987
Authorization: National
Headquarters: 3rd Floor East Tower, Wings Office Complex, Victoria Island, Lagos
Number of branches: 1
Official website: www.rmb.com.ng
Contact email: support@rmb.co
Conclusion
Merchant Banks offer a variety of opportunities for business owners to grow their businesses and manage their wealth through risk management offered by Merchant Banks. In this post, I have shared everything you need to know about merchant Banks and the best 5 merchant Banks in Nigeria for anyone looking to secure a loan with an investment Bank.
