Last year may turn out to be one of the best for the shareholders of FBN Holdings in terms of returns on equities investment. The group has proposed a double pronged reward.
The audited financial result of the top tier bank lender and financial services group filed with the Nigerian Stock Exchange (NSE) proposed dividend of 10 kobo and a bonus of one new share for every 10 already held.
Stockbrokers said the twin reward for the financial year ended December 31, 2014 compares fairly well with N1.05 dividend paid in 2013.
However, the bonus reward may be a drag on share price as the stock will eventually get marked down to accommodate additional shares capitalisation.
FBN Holdings, which subsidiaries include First Bank, said profit after tax firmed up to N82.839 billion, against N70.631 billion in the corresponding period in 2013, a growth of 17.3 per cent.
Gross earnings grew 21.5 per cent, from N395.455 billion in 2013 to N480.618 billion in 2014.
Year 2013 numbers showed a 7 per cent growth in gross earnings year on year from N370.2 billion in 2012 to N395.9 billion in 2013, while net interest income stood at N230.1 billion, up 1.5 per cent year-on-year from N226.6 billion recorded in 2012.
Non-interest income was down 9.3 per cent to N67.0 billion, against N73.9 billion posted in 2012 while operating income was also declined 1.7 per cent, from N301.1 billion in 2012 to N296.1 billion in 2013.
Impairment charge for credit losses of was N20.3 billion in 2013, against N12.5 billion recorded in 2012.
Profit before tax (PBT) declined 2.8 per cent, to N91.34 billion from N93.9 billion; and profit after tax (PAT) by 8 per cent, to N70.63 billion from N76.8 billion.
First Bank had in 2013 acquired ICB West African operations (Ghana, Gambia, Sierra Leone, Guinea) and added 77 new business locations (including 31 branches from the ICB acquisition), bringing the total to 867.
Its acquisition of Oasis Insurance was completed January 2014 and it was awarded $12 million grant from the Bill and Melinda Gates Foundation for FirstMonie, FirstBank’s mobile money business.