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First Inland Bank to raise N100bn


November 07, 2007/Punch



First Inland Bank Plc has applied to regulatory authorities for approval to raise N100bn from the capital market.


The Chairman of the bank, Dr. Theo Osanakpo, said this at the company’s annual general meeting in Abuja on Tuesday.


Osanakpo said it was necessary to raise additional funds for the bank to remain focused and relevant to contemporary challenges and tasks ahead.


According to him, additional capital will be raised by hybrid means of equity, debentures, bonds and preference shares.


The bank recorded an earning of N27.47bn and a profit before tax of N6.47bn in the year ended April 30, 2007.


Osanakpo said, “Although the synergy arising from the merger between the four legacy banks resulted in significant growth in deposits, total assets, contingencies, increased incomes and overall improvement in performance of the bank; the benefit was not immediate.


“The consolidation presented integrated issues.”


According to him, during the period under consideration, the bank grappled with both integration challenges and goodwill arising from the consolidation.


He added that the negative reserves inherited from the legacy banks had significant impact on the bank’s performance.


The profit attributable to shareholders was N2.99bn after the amortisation of goodwill of N3.2bn arising from the consolidation.”


The Chairman ruled out the payment of dividend until the issue of goodwill was resolved. He said the resolution of goodwill at the AGM would ensure that dividend was paid in the next financial year.


After some contentions, the AGM re-elected Osanakpo as chairman. Some shareholders had insisted that the board comprising 20 members was wieldy.


They therefore demanded that those that had poor record of attending board meeting, should be dropped.


Instead of one resolution for the election of new board members, each member was considered based on fitness and record.

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