FBN Holdings Shareholders Approve N14bn Dividend

. . . …Endorses Oyedeji As New GMD

The shareholders of FBN Holdings have unanimously approved a total of N14.4 billion as dividend for the financial year ended Dec. 31, 2023.

They gave the approval at the company’s 12th Annual General Meeting which was conducted virtually on Thursday.

The approved dividend translated to 40k per share.

At the Annual General Meeting, Dr Alimi Abdul-Razaq, representing the Chairman of FBN Holdings, Mr Femi Otedola, who was regrettably unable to attend, sought the approval of the shareholders for the appointment of Mr Adebowale Oyedeji as the incoming Group Managing Director.

Oyedeji a seasoned professional with a proven track record in the financial sector would succeed Mr Nnamdi Okonkwo at the conclusion of his tenure.

The transition in leadership marks a significant milestone for FBN Holdings as the Board of Directors aims to ensure continuity and drive sustainable growth for the organisation.

Oyedeji’s wealth of experience and strategic acumen position him as a fitting candidate to steer the company towards achieving its long-term objectives while upholding its commitment to delivering value to shareholders.

Abdul-Razaq said the decision to appoint Oyedeji reflects the board’s confidence in his leadership capabilities and vision for the future of FBN Holdings.

In addition to the current N150 billion right issue, the company sought shareholder’s approval for an additional N350 billion at the AGM.

“It is important to note that these funds will be allocated carefully and strategically to support the bank in achieving its objectives and fulfilling its obligations to its stakeholders.

“The prudent use of these combined funds will enable the bank to strengthen its financial position, enhance its operational capabilities, and better serve its customers and the community at large.

“This significant capital injection reflects the company’s commitment to sustainable growth and value creation, while also ensuring compliance with regulatory requirements and industry best practices.

“As we move forward with this proposal, we remain dedicated to transparent communication, effective governance, and responsible decision-making to secure the long-term prosperity and success of the firm,” Abdul-Razaq said.

During the meeting, the outgoing Group Managing Director, Okonkwo delivered an insightful address regarding the current trajectory of the company, emphasising the positive momentum within the firm.

He highlighted a remarkable 134 per cent surge in gross earnings over the nine-month period.

As a consequential outcome, the firm experienced an impressive 124 per cent escalation in bottom-line performance, recording an outstanding total of N611 billion.

Okonkwo underscored the significance of sustaining the growth as demonstrated in the recently concluded financial report.

He expressed unwavering confidence in the company’s capabilities and assured shareholders of the strategic initiatives already in motion.

“This commitment reflects the leadership’s steadfast dedication to driving the firm towards further success and prosperity, he said.

Okonkwo’s address not only celebrated the achievements of the past years but also laid a foundation for continued progress and excellence.

His reassurance serves as a testament to the company’s resilience and determination on the path ahead.

“Today, we have 42 million customers in First Bank flagship operation, we have 15.6 million subscribers on USSD platform, we have 6.6 million mobile phone subscribers. In agency banking, nobody comes near us, we have over 270,000 agents across the country,” Okonkwo said.

A shareholder, Mrs Bisi Bakare expressed her admiration for the exceptional leadership demonstrated by the Chairman of FBN Holdings, Mr Femi Otedola, as well as the board and management of the company.
She highlighted Otedola’s significant positive impact on the share price of FBN Holdings, which surged from N3.85 to N35 under his guidance.

She, however, called for increased dividend payouts from FBN Holdings Plc in the years ahead.

Also, the shareholders gave their approval for the capital raise of up to N350 billion by the year 2025.

The decision to raise N350 billion will be through various financial instruments and opportunities such as public offerings, private placements, and rights issues in both local and international capital markets.

The pricing mechanisms for these activities will be determined through rigorous valuation methods such as book building processes, ensuring transparency and fair market value.