FirstBank to hold 4th FirstGem annual conference

By Peter Egwuatu

The financial lead at First Bank Holdings Plc, FBNH, has advised that investors should invest in companies that have good financial fundamentals and can withstand the test of time, adding that investment in capital market should not be a gamble.

The Company’s Chief Finanicial Officer, CFO, Oyewale Ariyibi, who gave this advise, noted that investment in capital market should not be targeted at short term gain but long term, while advising investors to always seek financial advice for investment decision to maximise returns.

He stated these at the Capital Market Correspondents Association of Nigeria, CAMCAN’s knowledge sharing session at a webinar.

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

“As an investor, investing in financial market is not gamble or betting, you need financial adviser for investment decisions.

“You should invest money you don’t have 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 an awareness on the value derived from 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 relevance of financial statement to 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, 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.”

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