I reviewed the latest results from FBN Holdings and was blown away. Calling them “amazing” feels like an understatement.
Profits surged by over 125%, reaching N526.28 billion for the nine months of 2024, up from N234.05 billion in the same period in 2023.
It wasn’t just profits that climbed; other key metrics also saw impressive growth. Interest income soared to N1.63 trillion, with fees and commissions significantly contributing to profitability. This all contributed to a total asset boost, hitting a remarkable N27.49 trillion.
Adding to the good news, an Appeal Court judgment recently cleared the path for FBN Holdings’ much-anticipated capital raise.
My discussions with key analysts reveal that a N150 billion capital raise was approved in 2023 at the AGM, while an additional N350 billion raise is planned for approval at the upcoming November 14 AGM.
With this wave of positive news, shareholders and stakeholders in FBN Group seem poised for a celebratory end of the year.
But let’s hold on for a moment. It wasn’t always this bright. The group was, until recently, under the grip of an “old fox.”
Much has been said about the questionable actions of this figure, who treated the bank as a resource to drain rather than to nurture.
At one point, FBN was struggling to maintain its “FUGAZ” ranking, leaking like a burst pipe. Enter Femi Otedola, backed by his new team of financial reformers.
The struggle for the bank’s soul was intense. The old guard didn’t want to let go, resulting in court cases, boardroom intrigues, and a shareholder struggle that even drew in Ecobank and other interested parties.
Fortunately, Otedola’s team emerged victorious, pushing out the old fox, who slunk away but still lingers on the sidelines, waiting for an opportunity to return.
FBN Holdings has been a pillar of Nigeria’s financial system, contributing significantly to commerce for over a century. The recent rough times were a concern for Nigerians. Under the old regime’s grip, the bank was drained, losing market leadership and becoming a shadow of its former self.
Cronyism eroded professionalism, resulting in increased fraud, bad loans, and weakened corporate governance. Capable professionals left, and the bank’s strong reputation was tarnished.
Otedola and his new team inherited a weakened institution and immediately went to work, removing entrenched interests that had drained FBN for years.
Major boardroom changes, robust reforms, and a zero-tolerance stance on leakages have revitalized the institution.
The team also cracked down on a cabal siphoning over N50 billion from the system through technology-driven fraud—a scheme implicating figures from both board and management levels.
Today, the bank is re-energized, showing impressive results, with Otedola making bold moves to shore up his stake. Recently, he increased his shareholding to around 16%, solidifying his influence over the institution.
Otedola’s sharp eye for talent is further demonstrated by the hiring of Wale Oyedeji, a respected banking veteran known for his integrity and professionalism.
Oyedeji’s entry is seen as a strategic gain for FBN, particularly as he brings market goodwill, and sharp business insight, and aligns with the institution’s new vision.
Market expectations are high, especially around the impending capital raise, expected to break records following FBN’s financial turnaround and historic performance.
It’s no wonder Mr. Otedola is confidently celebrating his hard-won victory, much to the dismay of those who previously held power.
Congratulations to Femi Otedola and the entire FBN Holdings family.
