FBN Holdings Shareholders Approve N14.4 Billion Dividend, Endorse New Leadership, Capital Raise
The shareholders of FBN Holdings have unanimously approved a dividend of N14.4 billion for the financial year ending 31st December 2023.
The approval, translating to 40 kobo per share, was granted during the company’s 12th Annual General Meeting (AGM), held virtually on Thursday.
In a significant move, the AGM also approved the appointment of Mr Adebowale Oyedeji as the incoming Group Managing Director, following the completion of Mr Nnamdi Okonkwo’s tenure.
Dr Alimi Abdul-Razaq, representing the Chairman of FBN Holdings, Mr Femi Otedola, who was unable to attend, highlighted Oyedeji’s extensive experience and strategic vision as key factors behind his selection.
“Oyedeji’s wealth of experience and proven track record in the financial sector position him as an ideal candidate to lead FBN Holdings into a future of sustained growth and value creation,” Abdul-Razaq stated.
He added that the transition underscores the board’s commitment to continuity and the company’s long-term objectives.
The outgoing Group Managing Director, Mr Nnamdi Okonkwo, used his address to reflect on the company’s remarkable financial achievements.
Gross earnings surged by 134 per cent over nine months, while bottom-line performance soared by 124 per cent, resulting in a record N611 billion in profits.
“This remarkable growth showcases the company’s resilience and strategic focus,” Okonkwo said, emphasising the importance of sustaining the upward trajectory.
He noted that First Bank, FBN’s flagship operation, now boasts 42 million customers, 15.6 million USSD platform subscribers, and 6.6 million mobile app users. Additionally, its agency banking network, comprising over 270,000 agents nationwide, remains unparalleled in the industry.
Shareholders also approved a capital raise of up to N350 billion to be completed by 2025.
The funds, to be generated through public offerings, private placements, and rights issues in local and international capital markets, will supplement the ongoing N150 billion rights issue.
Abdul-Razaq assured shareholders that the capital would be deployed prudently to strengthen the company’s financial position, enhance operations, and meet regulatory requirements.
“The prudent use of these funds reflects our commitment to sustainable growth, regulatory compliance, and delivering value to stakeholders,” he said.
The pricing mechanisms for the capital raise will involve rigorous valuation processes, ensuring transparency and fair market practices.
In his farewell address, Okonkwo celebrated the company’s achievements under his leadership and expressed confidence in its future.
“The leadership remains steadfast in its dedication to driving the firm towards greater prosperity,” he said.
