FBN Holdings Plc has declared a final dividend of 26 kobo per 50 kobo ordinary share for the financial period ended Monday, December 31, 2018.
Come Monday, May 6, 2019, the dividends will be paid to shareholders whose names appear on the Register of Members as at Monday, April 22, 2019. Also, only those who have completed the e-dividend registration and mandated the Registrar to pay their Payment Date dividends directly into their Bank accounts will receive payment
The Register of Shareholders will be closed from Tuesday, April 23, 2019, to Monday, April 29, 2019.
A dividend is a payment made by a company to its shareholders, usually as a distribution of profits. When a company earns a profit or surplus, it reinvests a portion of the profit in the business (retained earnings) whilst paying a portion as dividends to the shareholders.
Distribution to shareholders may be in cash (usually a deposit into a bank account) or the issuance of further shares, otherwise known as shares repurchase. But this is usually if the company has a dividend reinvestment plan.
In other words, a dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense; rather, it is the division of after-tax profits among shareholders.
Laudable financial results?
FBN Holdings Plc reported 31.4% growth in profit after tax for the year ended December 31, 2018.
Although gross earnings dipped slightly by 2% from N595 billion in 2017 to N583 billion in 2018, Profit before tax rose from N54.5 billion in 2017 to N65.2 billion in 2018. This amounts to a 19.6% increase year on year.
On the other hand, Profit after tax (from continuing operations) rose from N45.4 billion in 2017 to N59.7 billion in 2018. This marks a 31.4% increase year on year.
FBN Holdings Plc, together with its subsidiaries, provides commercial banking, investment banking, corporate banking, insurance, and other financial services in Nigeria and internationally.
The company traded N7.25 on the floor of the Nigerian Stock Exchange (NSE).