FBN Holdings gets CBN’s nod for KDH’s merchant banking
The approval, according to the bank would enable the bank to create new products in its investment banking business.
Addressing shareholders during the 3rd yearly general meeting of the bank in Lagos at the weekend, the Managing Director of FBN Holdings, Bello Machido explained that the merchant bank license would be beneficial to shareholders in the medium and long term, as the product offering would help grow the bank and generate more profit.
Besides, shareholders of the bank also approved the bank’s N3.3billion dividend, translating to N0.10kobo dividend due to every investor for the 2014 financial year.
Machido explained that the bulk of the money generated by the bank during the year under review was used to raise the acquisition of the KDH from 46 per cent to 100 per cent, adding that the bank holds complete acquisition of the operations.
“The 10 kobo dividend, in October 2014, CBN commenced the implementation of the Basel 11. The quantum of capital requirement was much and the bank still needs to retain a larger amount of capital in order to continue in the business. The bulk of FBN Holdings money was used to raise acquisition of KDH from 46 per cent to 100 per cent. This would enable our investment banking to drive more products.” He added.
Maccido noted that the performance by the banking group was a testament to the underlying strength of commercial banking business, which was built on an extensive retail network and a robust information technology platform.
He explained that despite the 68billion loss made by the bank on cash reserve ratio (CRR), the commercial banking segment achieved a profit before tax of over N90 billion.
The company had announced a profit after tax of N82.8billion for the financial year ended December 31, 2014, an increase of 17.3 per cent when compared to N70.6billion recorded in the same period of 2013.
The group gross earnings stood at N480.6billion, up 21.3 per cent when compared to N396.2billion recorded in the corresponding period of 2013.
The group declared a non-interest income of N111.8billion, up 66.1 per cent from N67.3billion recorded in 2013, while net interest income added 6.0 per cent to N243.9billion in the review period from N230.1billion in 2013.
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