Nigerian tycoons Femi Otedola and Tunde Hassan-Odukale are set to receive a dividend of N1.62 billion ($3.9 million) from their stakes in First Bank of Nigeria Holdings Limited (FBNH) thanks to the leading lender’s stellar performance, with earnings increasing by more than 99 percent during the period under review.
Otedola, a leading billionaire businessman and philanthropist with a 7.57-percent stake in FBNH, will receive a dividend of N951.05 million ($2.29 million), while the managing director and CEO of Leadway Assurance Company, Tunde Hassan-Odukale, who owns a 5.32-percent stake in the lender, will receive N668.02 million ($1.61 million).
The news comes several months after the businessmen revealed their stakes in the bank after keeping the public guessing for several weeks. The two Nigerian businessmen will receive a total dividend of N1.62 billion ($3.9 million) from their shareholdings.
FBN Holdings is one of Nigeria’s largest financial services conglomerates. It is the non-operating holding company for First Bank of Nigeria Limited, the country’s oldest commercial bank with active operations in 10 countries.
The group’s full-year profit in 20221 increased by 99.9 percent from N75.6 billion ($182 million) in 2020 to N151.1 billion ($363.7 million) at the end of 2021, owing to strong performance from its banking, operations, pension, and investment banking sectors, which boosted the group’s gross earnings by 28.2 percent to N757.3 billion ($1.82 billion).
As a result of its solid financial performance, the bank’s total assets increased 16.2 percent to N8.9 trillion ($21.4 billion) from N7.7 trillion ($18.5 billion), driven by a 30-percent increase in customer loans and a 26.3-percent increase in the value of its investment securities.
Despite the strong financial performance, the board recommended a final dividend of N0.35 ($0.00084) per share for the year, a 22-percent decrease from the dividend of N0.45 ($0.00108) per share paid to shareholders the previous year.
The board also stated that the group’s strategic focus in 2022 will be on revenue generation through digital channels and retail product offerings, as it seeks to maximize synergy potential as part of its efforts to improve its operating model and deliver greater efficiencies.
