To ensure sustainable growth, FBN Holdings Plc shareholders called for a peaceful resolution of the ongoing conflict over the bank’s control yesterday. At the same time, they approved a N17.9 billion total dividend, with a final payout of 50 kobo due to each shareholder for the bank’s fiscal year 2022.
shareholders requested regulators to ensure that any director dismissed from the board of a listed corporation sells their shares and loses participation on the board during the bank’s 11th virtual annual general meeting, which was held yesterday.
In particular, Mrs. Bisi Bakare, President of the Pragmatic Shareholders Association of Nigeria, expressed hope that the two new directors, whose positions were confirmed during the meeting, will make a substantial contribution to the expansion of the bank.
She asked the bank’s management to secure a peaceful resolution of the ownership dilemma, nevertheless, so that it could continue to compete in the market.
“We welcome the two directors as members of the board and we are sure that the Chairman of Geregu Power Plc, Femi Otedola would bring his wealth of experience to grow the bank. I appeal that the management should settle the dispute within the bank with all parties involved to move our bank forward,” she said.
Bakare emphasized the need for management to take into account paying an interim dividend to shareholders within the current fiscal year.
Speaking in addition, Dr. Farouk Umar, President of the Association for the Advancement of the Rights of Nigerian Shareholders, praised management for improving performance in its 2022 full-year result despite a challenging operating environment.
Umar criticized the current intention by some shareholders to postpone the AGM, the appointment of new directors, and capital raising, stating that parties that are incensed should always try to resolve disputes diplomatically.
He emphasized that the recent demonstration at the bank’s headquarters could convey the wrong message to the bank’s depositors and have a negative effect on the shares in the bank.
“I am happy with the two new people you are bringing on board. Otedola has been a successful businessman and will add value to the bank. The chairman should bring major shareholders together. People should have diplomatic ways of making their views known. We should not do things that will bring the bank down.”
“The regulatory authorities should ensure that whenever someone is removed, the person must divest his shares, this is what is done abroad, they should not have representation on the board and not buy more shares, or now we are going back,” he warned.
Patrick Ajudua, president of the New Dimension Shareholders Association, commended the board for the decrease in the bank’s non-performing loans and urged them to build on the success.
Nnamdi Okonkwo, the bank’s group managing director, thanked the shareholders for their support and assured them that the management will continue to be focused on improving profitability and development.
Okonkwo gave an explanation of the rationale behind the proposed N150 billion capital raise, saying: “All businesses are susceptible to change, thus we must create a strong financial basis to ensure that our continuing concern is not jeopardized. We must seize this chance, draw in business, and prepare for Basel III.
According to him, “The pilot phase is on when implemented, we do not want to be running ‘helter-skelter’, we need to strengthen our balance sheet. It is in the interest of all so that your bank is fortified in capital,” he said.
Earlier, the company chairman, Ahmad Abdullahi, stated that total assets increased by 18.4% to N10.58 trillion in 2022 from N8.93 trillion the year before, while gross earnings increased by 6.3% to N805.1 billion from N757.3 billion.
He continued by saying that customer deposits increased by 21.8% last year, from N5.85 trillion in 2021 to N7.12 trillion.
