FBNH- Financial advisers to guide investors on fundamental stocks to invest

By Mobolaji Samuel

First bank Nigeria holdings plc (FBNH)has advised investors in the nation’s capital market to always seek financial advice for investment decision to maximise returns.
The Chief Financial Officer of FBNH, Oyewale Ariyibi, said this at the Capital Market Correspondents Association of Nigeria (CAMCAN) June knowledge sharing session in Lagos recently.

Ariyibi said, financial advisers would guide investors on fundamental stocks to invest in to maximise returns on investment.

“As an investor, investing in the financial market is not gambling or betting, you need a financial adviser for an investment decision.

“You should invest money you don’t need for immediate use, invest for medium and long-term, also invest in stocks that have good fundamentals for capital gains,” Ariyibi said.

Speaking on the theme: “Understanding Financial Statement for Business Reporting,” he raised awareness of the value derived from the financial statement of a company.

Ariyibi said: “A financial statement represents a formal record of the financial activities of an entity; it reflects the financial effects of business transactions and events on an entity.

“It is prepared by following certain logical and consistent accounting principles; and it is usually audited to ensure accuracy for tax, financing, or investing purposes.”

Explaining the relevance of financial statement to the user, he said “For Management, it is used for planning, controlling and decision-making process, to evaluate the organisational performance and position, so that the necessary measures are taken for improvement.

“For shareholders and investors, the financial statement can be used to analyse the viability and profitability of their investments and to assess the ability of the business/organisation to pay dividends and determine any future course of action.

“While employees and trade union can be used to evaluate the financial health of the business to determine their job security, the possibility of future remuneration, retirement benefits and employment opportunities.”

Furthermore, Ariyibi said it helps in ensuring that the business operates following laid down rules and regulations aimed at protecting the interests of the stakeholders.

He also added that regulatory authorities/agencies rely on company financial statement, while bankers and creditors assess the financial capacity/capability of the company, its creditworthiness and going concerned with the financial statement.