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… as group pays N25.1 billion dividend to shareholders
Barring any last-minute change, FirstBank of Nigeria Plc is set to announce its recapitalization base of N500 billion well ahead of the Central Bank of Nigeria’s (CBN) minimum threshold for banks in the domestic economy by March 31, 2026.
The Central Bank of Nigeria’s (CBN) recapitalization base for banks in Nigeria refers to the minimum level of capital that banks must maintain to operate effectively and responsibly. This base is a crucial regulatory measure designed to ensure the stability and resilience of the banking sector.
The cumulative dividend payout of N25,126, 704, 955 billion translates to 60 kobo per share 50 Kobo ordinary share of the company, and it’s subject to withholding tax.
Addressing shareholders on Thursday at the FirstHoldco 13th Annual General Meeting in Lagos, the Chairman, Mr. Femi Otedola assured that the CBN’s recapitulation base for the banking arm of the group will be met in a couple of weeks from now.
According to him, “today, after we have completed the private placement, which we embarked on, by analysis, I would have invested over 300 billion naira into this institution.
The Group Managing Director, Mr. Wale Oyedeji also reiterated that before the end of July, the bank will be at the minimum required capitalization from the central bank, said 2024 was the year of further improved profitably, noting that, the group leveraged it’s diversified portfolio of businesses to deliver sturdy growth across key performance indicators.
An x-ray of FirstHoldco financial statement in 2024 showed that, it’s earnings surged by 105.7 per cent year-on-year to record N3.2 trillion. This performance was largely driven by a 156 per cent year-on-year growth in net interest income, which reached N1.4 trillion.
Additionally, the group’s Non-interest income, driven by growing fee income and e-banking transactions, grew by 27.8 per cent, rising from N591.0 billion in 2023 to N755.1 billion by year-end of 2024. Bottom line grew by 124 per cent year-on-year, with profit before tax standing at N796.5 billion.
Another major highlight of the AGM yesterday saw the trio of Dr. Farouk Umar, Mrs. Bisi Bakare, and Mr. Akin Akindoro, leaders of various shareholder groups, applauding the superlative financial performance of the company.
They stated that the positive trajectory of indicators in the Holdco is further testament to the financial reengineering prowess of the Chairman and the strategic policy framework put in place by the management. However, they called on the Holdco to raise the bar in terms of dividend payout, suggesting that the increase should be significant, and requested that the management be mindful of contraventions and forex exchange losses.
Responding to shareholder concerns, Mr. Oyedeji, assured investors that the bank is committed to delivering and surpassing their expectations.
Addressing queries on profitability targets for 2025, Mr. Oyedeji emphasized the bank’s dedication to growth and improvement, noting that the dividend payment increased by 50% from 2023 to 2024. He attributed share price growth to the bank’s performance and commitment to maximizing shareholder value.
On staff remuneration, he said the board has proactively addressed the issue, demonstrating care for management and staff. For loan recovery, Mr. Oyedeji said the bank prioritizes protecting shareholder wealth, utilizing legal means when necessary to recover loans.
Mr. Oyedeji further assured that shareholders can expect better dividends in the coming year, following the completion of the bank’s capital raise.
He added that FirstBank aims to ramp up interest income in its core operations, driven by growing deposits, as it aspires to be a leader in the country, with a focus on increasing deposits and delivering strong financial performance.
Dividend Payout
Mr. Oyedeji promised that the bank would pay more dividends in 2025, driven by higher dividend payouts from its subsidiaries. He noted that the bank’s financial performance has been strong, and it aims to maintain this trajectory.
Risk Management
The GMD emphasized the bank’s commitment to managing risks, including cyber risk, reputational risk, and foreign exchange risk. He assured shareholders that the bank has invested significantly in tools and human capital to mitigate these risks.
Digital Capabilities
Mr. Oyedeji highlighted the bank’s strength in digital capabilities, including its fintech transactions, which command 20% of the market share. He emphasized the bank’s commitment to investing in digital capabilities to remain competitive.
Cost Management
The GMD commended the bank’s cost-to-income performance, which has improved from 49% to 43%. He attributed this to the bank’s discipline towards cost management and its efforts to minimize waste and excesses.
Future Outlook
The GMD expressed optimism about the bank’s future prospects, driven by its strong financial performance, digital capabilities, and commitment to risk management. He assured shareholders that the bank will continue to work towards maximizing value for them.
