The shareholders of First Bank of Nigeria (FBN) have collectively approved a total dividend of N14.4 billion for the financial year ending December 31, 2023. The approval was granted during the company’s 12th Annual General Meeting, which was held virtually.
During the Annual General Meeting, Dr. Alimi Abdul-Razaq, standing in for the Chairman of FBN Holdings, Femi Otedola, who was unable to attend, requested the shareholders’ approval for the appointment of Adebowale Oyedeji as the new Group Managing Director.
With a wealth of experience in the financial sector, Oyedeji takes over from Nnamdi Okonkwo, whose tenure has come to an end. The leadership transition at FBN Holdings represents a pivotal moment for the organisation, as the Board of Directors focuses on maintaining stability and fostering long-term growth.
With his extensive experience and strategic insight, Oyedeji is well-positioned to lead the company in achieving its long-term goals, while staying true to its commitment to delivering value to shareholders. Abdul-Razaq stated that the board’s decision to appoint Oyedeji underscores their trust in his leadership skills and his vision for the future of FBN Holdings.
At the AGM, the company requested shareholders’ approval to raise additional N350 billion, on top of the existing N150 billion in rights issues.
Abdul-Razaq said: “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.’’
The outgoing Group Managing Director, Okonkwo, stresses on the company’s promising direction, noting the strong momentum that the firm is currently experiencing. He pointed out a significant 134 per cent increase in gross earnings during the nine-month period, underscoring the company’s impressive financial performance over this timeframe.
As a result, the company saw a remarkable 124 per cent growth in its bottom-line performance, reaching an exceptional total of N611 billion. Okonkwo emphasised the importance of maintaining the growth shown in the recently finalised financial report.
He conveyed strong confidence in the company’s abilities and reassured shareholders about the strategic initiatives already underway.
“This commitment reflects the leadership’s steadfast dedication to driving the firm towards further success and prosperity”, Okonkwo said.
Okonkwo reassurance stands as a testament to the company’s strength and commitment to the future.
“Today, we have 42 million customers in the First Bank flagship operation, we have 15.6 million subscribers on the USSD platform, and 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.
However, she urged FBN Holdings Plc to increase dividend payouts in the coming years. Additionally, the shareholders approved a capital raise of up to N350 billion by 2025.
The N350 billion fundraising will be carried out through various financial instruments and avenues, such as public offerings, private placements, and rights issues in both domestic and international capital markets. The pricing for these activities will be set using thorough valuation techniques, including book building processes, to ensure transparency and reflect fair market value.
