National Wire About Nigerians, Nigerian Business and Other Stories
Shareholders of FBN Holdings Plc on Friday approved the company’s 26 kobo dividend per unit of shares, this translating to a total of N9.3 billion paid to investors in the 2018 financial year.
Shareholders of FBN Holdings Plc on Friday approved the company’s 26 kobo dividend per unit of shares, this translating to a total of N9.3 billion paid to investors in the 2018 financial year.
Also, the shareholders applauded the company’s operational prowess in navigating the domestic economic contraption in driving its operations and giving a return on investment.
FBN Holdings Plc, together with its subsidiaries, provides commercial banking, investment banking, corporate banking, insurance, and other financial services in Nigeria and internationally.
However, the shareholders raised pertinent issues around the commercial bank legacy loan, N1 trillion as fees to the Central Bank of Nigeria, cost of operations rising by 9 per cent and impairment raising to N713 billion in the last couple of year amongst others.
Speaking at the 7th Annual General Meeting of the company, the trio of Mr. Norna Awoh, Patrick Ajudua and Sir Sunny Nwosu who spoke variously on behalf of other shareholders, commended the company’s tenacity in building a strong brand which has been in operation in the last 125 years, even as they applauded the contribution of the subsidiaries to the Holdco.
Responding to shareholders concerns, First Bank Plc MD/CEO. Dr. Adesola Kazeem Adeduntan and Group Managing Director, Executive Director of FBN Holdings Plc Mr. Urum Kalu (UK) Eke, said the company has made considerable progress in the recovery of its NPL.
“We will ensure that our loan from the bank will not be left in the hands of the third party. We shall keep the lead on NPL formation to a single digit. On the legacy loans, will ensure and disclose a further reduction in the coming year.
According to Dr. Adeduntan, while the bank has made a giant stride in creating 20,000 thousand agency banking outlet, which has continued to process a daily transaction of N1 trillion, noted that the rise in operational cost was occasioned by hitch-up in the regulatory challenge and inflationary pressure.
“We have grown our loan by 5 per cent in the current year under review, especially our supply to agriculture. We are also ensuring the safety on deposit money. About 10 million transactions are currently being carried out on our bank’s e-platform,” he added.
Further, in his contribution, Mr. Eke said the bank brand is in a strong position in 2019 compared to where it was in 2017. “We have embarked on building on a solid foundation as a result of our strategic objectives for the year that will ensure consistency in dividend payment to shareholders.
“We are not resting on our laurels, and our renewed approach to synergy and innovation will be major drivers to unlocking earnings potentials for our Group. We believe that our efforts to integrate our offerings and provide end-end solutions for our customers will create a competitive advantage in our market”, he added.
A cursory look at the financial statement of the company showed that a reported 31.4% growth in profit after tax for the year ended December 31, 2018.
Although gross earnings dipped slightly by 2% from N595 billion in 2017 to N583 billion in 2018, Profit before tax rose from N54.5 billion in 2017 to N65.2 billion in 2018. This amounts to a 19.6% increase year on year.
On the other hand, Profit after tax (from continuing operations) rose from N45.4 billion in 2017 to N59.7 billion in 2018. This marks a 31.4% increase year on year.
Photo Caption: From Left-Non-Executive Director, FBN Holdings Plc, Adesola Adeduntan; Group Managing Director, U.K Eke; Group Chairman, Oba Otudeko and Company Secretary, Oluseye Kosoko, at the 7th Annual General Meeting of the company in Lagos at the weekend. Photo: ABIODUN OMOTOSHO
