Bank led by Nigerian billionaire Femi Otedola declares $9.9-million dividend for shareholders

Omokolade Ajayi -

Key Points:

  • Nigeria’s FBN Holdings reports a huge profit jump in 2023, to $214 million from $94 million.
  • Shareholders get a piece of the pie — $9.9-million payout planned after strong year.
  • Bank under Otedola’s leadership sees assets and retained earnings surge.

First Bank of Nigeria Holdings (FBN Holdings), a leading Nigerian financial services group chaired by billionaire businessman Femi Otedola, who also holds a significant ownership stake, is set to distribute a total dividend of N14.36 billion ($9.92 million) for the fiscal year 2023.

The board of directors recommended the final dividend of N14.36 billion ($9.92 million), translating to N0.40 per share ($0.000275), in its recently published financial statement.

FBN Holdings profit jumps, announces dividend payout

The $9.92-million dividend, to be paid from retained earnings, follows an impressive financial performance for FBN Holdings in fiscal 2023. Profit surged to N310.37 billion ($214.06 million) from N136.17 billion ($93.9 million) in 2022, solidifying the group’s position as one of Nigeria’s most profitable lenders.

This profit surge, which pushed FBN Holdings’ total comprehensive income to N752.9 billion ($519.2 million) from N128.45 billion ($88.6 million) in 2022, was driven by a rise in interest income.

Interest income grew to N960.33 billion ($662.4 million) from N551.94 billion ($380.7 million), while non-interest income increased to N226.45 billion ($155.86 million) from N143.98 billion ($99.31 million).

FBN Holdings soars under Femi Otedola’s leadership

One of Nigeria’s most valuable banking groups, FBN Holdings has solidified its position in the financial services industry. As the parent company of First Bank of Nigeria Limited, the country’s oldest commercial bank, FBN Holdings operates across ten countries.

Femi Otedola, who recently assumed the chairmanship, holds a 5.65 percent stake in the group. Since becoming a major shareholder in October 2021, he has been instrumental in driving the group’s financial performance and valuation to record levels in recent years.

FBN Holdings’ impressive financial performance is reflected in its balance sheet. Total assets increased to N16.94 billion ($11.65 million) as of December 31, 2023, from N10.57 billion ($7.27 million) at the end of 2022. Retained earnings also surged to N588.97 billion ($405.2 million) from N397.71 billion ($273.6 million).