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Friday, May 03, 2019 / 07.05PM / Ottoabasi Abasiekong for Proshare WebTV
FBN Holdings
Plc today hosted its 7th Annual General Meeting in Lagos, where shareholders
commended the board and management for an improved FY 2018 result.
In his opening
statement Dr Oba Otudeko, Chairman of FBN Holdings, noted that, “In 2018, the
increased group-wide collaboration resulted in a remarkable achievement of N20bn
in synergy revenues, representing three-year revenue synergy targets for the
group between 2017 and 2019”.
The report of
the External Auditors, Price Waterhouse Coopers (PwC), observed that “FBN
Holdings kept proper books of account for its 2018 FY and the statement of
financial position and that of profit or loss and other comprehensive income
were in agreement with the books of account”.
The Chairman of
the Statutory Audit Committee of the Group, Mr Ismail Adamu, pointed out that,
“The accounting and reporting policies of the Holdco conformed with the
statutory requirements and agreed ethical practices”.
Shareholder
Association leaders Sunny Nwosu, Patrick Ajudua, Lawrence Ibitoye and Umar
Farouk in their various remarks commended Holdco for paying 26k dividend amidst
a challenging 2018 macro-economic environment.
Mr Nona Awoh a
capital market stakeholder and shareholder decried the high regulatory costs
that banking groups like FBN Holdings, were experiencing. He was of the view
that it was having adverse effects on the revenue line and opportunity of
financial institutions to pay dividends.
The
shareholders tasked FBN Holdings to sustain the strategy of addressing its
non-performing loan ratio, which had steadily fallen over the last three years.
They also
emphasised the need for management to take effective steps in managing risk and
reinforcing best-in-class corporate governance standards, to ensure that the
momentum of resolving legacy loan issues are sustained.
Responding to
shareholders the MD/CEO of First Bank Nigeria Dr Adesola Adeduntan assured that
in the area of NPLs, the recovery efforts on all provisional accounts is in
progress and recovery will be done.
Adeduntan also
cited vintage NPL issues being tackled by the Holdco and is currently committed
to maintaining financial discipline and working towards resolving legacy
NPL-related issues.
He also said
that other areas First Bank will continue to drive include Agency banking,
Digital banking and aligning the bank’s accounting system with IFRS 9 rules to
ensure that its loan book grows moderately at 5%.
Also giving his
remarks the GMD of Holdco, Mr U.K Eke, MFR, commended shareholders for their
support and stated that the financial institution was in a stronger position at
the end of FY 2018, compared to FY 2017.
Mr Eke reminded
the shareholders that three years ago, the Holdco was dealing with issues of
capital, which it pledged not to task the shareholders with and had
successfully built capital buffers, with the commercial banks being well capitalized.
Considering the
issues of Non-performing loans, the GMD said the Holdco is targeting a single
digit NPL ratio at the end of FY 2019.
Shareholders
approved a 26k per share dividend pay-out which resulted in a total dividend
payment of N9.33bn for FY 2018.
Analysis of the
Holdco’s financials, showed that the group achieved a +19.7% increase in
Profit-Before-Tax with PBT rising from N54.5bn in FY 2017 to N65.3bn in FY
2018.
It also
recorded a +10.9% increase in customer
deposits which saw deposits rise from N3.1trn in FY 2017 to N3.4trn in FY
2018. Non-Interest income grew by +15.8% from N113.7bn in FY 2017 to N131.7bn in FY
2018.
FBN Holdings Plc also
recorded a +43.5% growth in earnings per
share from N1.15 in FY 2017 to N1.65 in FY 2018.
Visit FBN Holdings Plc IR Page in Proshare MARKETS
Graph – One Year Share Price Movement
Latest
Financials – Q1 2019 Unaudited Results
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