Nigerian billionaire businessman Femi Otedola is poised to receive a substantial windfall of $2.17 million from his stake in First Bank of Nigeria Holdings Plc (FBNH), solidifying his position as one of Nigeria’s top dividend earners in the banking sector.Â
The news comes as the bank’s board of directors proposes a generous dividend payout of N17.95 billion ($38.9 million), reinforcing FBNH’s commitment to rewarding its shareholders with impressive returns.
The dividend payout represents a remarkable achievement for FBNH, Nigeria’s oldest commercial bank, as it continues to prioritize value creation for its investors.
Earlier this year, Otedola received an additional N15.2 billion ($33 million) from his power-generating company, Geregu Power Plc, which displayed remarkable resilience in its 2022 fiscal year despite headwinds, including revenue-damaging acts of vandalism on its gas pipelines.
FBNH reported a profit of N136.1 billion ($295 million) in its 2022 fiscal year, slightly lower than the N151.8 billion ($330 million) recorded in the previous year.
The bank witnessed robust growth in gross earnings, surpassing the impressive milestone of N800 billion ($1.7 billion) during the same period.
The positive trend continued into 2023, with FBNH already achieving a profit of more than N50 billion ($108 million) in the first quarter.
The bank’s first-quarter profit surged by double digits from N36.52 billion ($80 million) in Q1 2022 to N50.09 billion ($109 million) this year.
This growth was primarily fueled by increased interest income, rising from N109.45 billion ($237.2 million) to N179.61 billion ($389.2 million), and non-interest income, climbing from N64.05 billion ($138.8 million) to N94.95 billion ($205.76 million).
As a prominent shareholder in FBNH, Otedola stands to benefit handsomely if the bank sustains this positive momentum throughout the year.
With the financial services group on track to achieve higher earnings, Otedola’s investment in FBNH is set to generate substantial returns.
This impressive financial performance by FBNH underscores its status as one of Nigeria’s leading financial institutions, continuously striving to deliver exceptional value to its shareholders.
With Otedola positioned to profit from the bank’s success, his astute investment decisions are once again reaping lucrative rewards.
