First Bank Holding Plc, one of the nation’s premier commercial banks will seek shareholders’ approval to raise additional capital at the group’s Annual General Meeting (AGM) scheduled for August 15, 2023.
This was contained in the group’s notice of the annual general meeting seen by Nairametrics.
According to the notice, the capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.
Strong Financial Performance in H1 2023
At the upcoming AGM, the shareholders will also have the opportunity to consider and pass the following special resolutions:
- That the Rights Issue referred to in Resolution may be underwritten on such terms as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities. That the shareholders, under Resolution, will waive their preemptive rights to any unsubscribed shares under the Rights Issue in the event of an under-subscription.
- That the Directors be authorized to appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority.
- That Clause 6 of the Memorandum of Association of the Company be amended to reflect the newly issued share capital of 22.435 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each”.
- “That the Directors’ fees for the financial year ending December 31, 2023, and for succeeding years, until reviewed by the Annual General Meeting, be fixed at N50 million for each Director and N63.7 million for the Board Chairman That the Company’s Issued Share Capital be increased from N17.948 billion made up of 35.895 billion Ordinary shares of 50 Kobo each to N22.434 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each”.
The group also announced the appointment of Billionaire investor, Mr Femi Otedola as Non-Executive Director subject to the approval of its shareholders at the upcoming Annual General Meeting (AGM) scheduled for August 15, 2023.
Appointment of Non-Executive Director and Promising Outlook
Otedola was listed as a substantial shareholder with 5.57% of the total shareholdings, translating to 10,000,000 units of shares directly held and 1,989,342,376 units of shares held indirectly under Calvados Global Limited as of June 30, 2023.
FBN Holdings Plc reported N206.3 billion profit after tax in its unaudited financial statements for the first half (H1) of the year ended June 30, 2023.
The Holding Company’s H1 results released on the NGX showed profit before tax grew by 213.8% from N65.7 billion in H1, 2022 to N206.3 billion in H1, 2023.
Profit after tax rose by 231.1% to N187.2 billion as against N56.5 billion in H1, 2022, while earnings per share also rose by 234% to N5.19 higher than N1.55 in 2022.
Further analysis revealed that gross earnings were up by 82.8 to N656.6 billion from N359.2 billion in H1, 2022.
Interest income appreciated by 69.3% from N383.3 billion compared to N226.4 billion in the corresponding period of 2022, while non-interest income amounted to N257.9 billion as against N120.6 billion.
Operating income for the period under review was up by 81.1% from N273.5 billion in H1, 2022 to N495.3 billion, while impairment charges for losses stood at N57.6 billion from N21.7 billion.
Total assets rose by 34.0% to N14.177 trillion as against N10.578 trillion as of December 31, 2022. Customer loans & advances recorded 38.9% year-to-date as of June 30, 2023, to N5.261 trillion from N3.789 trillion, while customer deposits stood at N 9.042 trillion, a year-to-date growth of 26.9% from N7.124 trillion.
A very impressive result, no doubt, but at what cost? The 69.3% H1growth in interest income to N383.3 billion is as a result of the poor payment on depositors’ funds. Again, the enormous non-interest income figure of N257.9 billion made for the same H1 2023 period are both evidence of how depositors are helplessly exploited by our unethical banking practices in the past decade. Non-interest incomes include the numerous, often unsolicited, digital notifications such as debit and credit alerts that attract substantial charges to the customer. This is the typical operational pattern in all Nigerian banks today.
The surprise in all these is that the CBN, as the regulator of our banking industry, sat idly by and allowed this unprecedented exploitation of bank customers to go on for so long and yet they failed to associate this with why over 50% of our currency remains outside the banking industry. Nigeria is long overdue for a thorough banking reform to usher in a new ethical banking framework that is both fair and responsive to the shifting financial services and customer preferences of our emergent digital economy.
This is great news from the First Bank Plc. Kudos to the staff, the directors and to the management of the bank. Sky is the limit for the progress of the bank. The first must always maintains good leadership. Directors’ emolument has been increased and that of the Boards” chairman. Let the shareholders’ dividend be equally enhanced to reflect the new statuesque of the bank.