• As bank defends N150 billion capital raising
Shareholders of FBN Holdings Plc, yesterday, called for a peaceful resolution of the lingering tussle over the control of the bank to ensure sustainable growth, even as they endorse a total dividend of N17.9 billion, culminating in 50 kobo due to every investor of the bank for the 2022 financial year.
At the bank’s 11th virtual yearly general meeting held yesterday, the shareholders urged regulators to ensure that any director removed from the board of a listed firm divests its shares and loses representation on the board.
Specifically, the President of Pragmatic Shareholders Association of Nigeria, Mrs Bisi Bakare, expressed optimism that the two new directors whose appointments were ratified at the meeting would contribute significantly to the growth of the bank.
However, she urged the leadership of the bank to ensure a peaceful settlement of the crisis over its ownership to enable it to remain competitive in the industry.
“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.
In addition, Bakare also stressed the need for the management to consider payment of an interim dividend to shareholders in the current financial year.
Also speaking, the President of the Association for the Advancement of the Rights of Nigerian Shareholders, Dr Farouk Umar, commended the management on the improved performance recorded in its 2022 full-year result, amid a harsh operating environment.
Umar faulted the recent plan by some shareholders to suspend the AGM, appointment of new directors and capital raising noting aggrieved parties in any dispute should seek more diplomatic ways of resolving issues.
He pointed out that the recent protest at the bank’s head office was capable of sending a wrong signal to depositors of the bank and impact negatively on the shares in the stock market.
“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.
President of New Dimension Shareholders Association, Patrick Ajudua lauded the board on the drop in the bank’s non-performing loan, urging them to consolidate on the performance.
The Group Managing Director of the bank, Nnamdi Okonkwo thanked the shareholders for their support while assuring them that the management would remain focused in its efforts to enhance profitability and growth.
Explaining reasons for the planned N150 billion capital raise, Okonkwo said: “All businesses are vulnerable to changes and we must build a strong capital base so that our going concern would not be threatened. We need to take advantage and attract businesses and be ready 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 group chairman, Ahmad Abdullahi said gross earnings rose by 6.3 per cent to hit N805.1 billion in 2022 as against N757. 3 billion achieved in the preceding year while total assets grew by 18.4 per cent to N10.58 trillion in 2022 from N8.93 trillion in the preceding year.
He added that customer deposits rose by 21.8 per cent to N7.12 trillion last year from N5.85 trillion in 2021.
