Thursday, February 22, 2024

Otedola to join First Bank Holdings board as non-executive director

First Bank Holding Plc one of the nation’s premier commercial banks, has announced the appointment of billionaire investor, Femi Otedola as Non-Executive Director subject to the approval of its shareholders at the upcoming annual general meeting scheduled for August 15, 2023.

Otedola was listed as a substantial shareholder with 5.57% of the total shareholdings, translating to 10,000,000 units of shares directly held and 1,989,342,376 units of shares held indirectly under Calvados Global Limited as of June 30, 2023.

The move cements Otedola’s position as a leading figure in Nigeria’s business landscape and underscores his influence in the country’s financial sector.

As the largest stakeholder in the Lagos-based financial services holding group, with an impressive 5.57% ownership as of June 30, 2023, Otedola’s involvement with First Bank solidifies his reputation as one of Africa’s top billionaires.

His success can be attributed to his business acumen and exceptional ability to identify opportunities in high-growth industries ahead of others, amassing an impressive fortune over the years.

Otedola’s appointment to the Board of First Bank Holdings is widely seen as a testament to his exceptional leadership skills and strategic thinking, which have earned him recognition for his entrepreneurial pursuits across various sectors.

The appointment letter conveyed the news of his new role as a Non-Executive Director, outlining an initial term of four years, subject to satisfactory performance and an annual performance appraisal.

The tenure may be extended for two additional terms of four years each, subject to age limitations stipulated by the Central Bank of Nigeria.

Industry experts, shareholders, and stakeholders in the Nigerian financial sector have enthusiastically welcomed the announcement of Otedola’s appointment.

His inclusion on the board will bring fresh perspectives and contribute significantly to the bank’s growth and development as a going concern.

At the upcoming First Bank Holdings AGM, the shareholders will also have the opportunity to consider and pass the following special resolutions:

“That the Directors’ fees for the financial year ending December 31, 2023, and for succeeding years, until reviewed by the Annual General Meeting, be fixed at N50 million for each Director and N63.7 million for the Board Chairman That the Company’s Issued Share Capital be increased from N17.948 billion made up of 35.895 billion Ordinary shares of 50 Kobo each to N22.434 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each.

“That there shall be a capital raise. The capital raise transaction shall be by way of a Rights Issue, on such terms and conditions and on such dates as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.

“That the Rights Issue referred to in Resolution (b) above may be underwritten on such terms as may be determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities.

“That the shareholders, under Resolution (c) above, hereby waive their preemptive rights to any unsubscribed shares under the Rights Issue in the event of an under-subscription.

“That the Directors be and are hereby authorized to appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority.

“That Clause 6 of the Memorandum of Association of the Company be amended to reflect the newly issued share capital of 22.435 billion by the creation of 8.974 billion Ordinary shares of 50 Kobo each.”

FBN Holdings Plc declared N206.3 billion profit after tax in its unaudited financial statements for the first half of the year ended June 30, 2023.

The Holding Company’s H1 results released on the NGX showed profit before tax grew by 213.8% from N65.7 billion in H1, 2022 to N206.3 billion in H1, 2023.

Profit after tax rose by 231.1% to N187.2 billion as against N56.5 billion in H1, 2022, while earnings per share also rose by 234% to N5.19 higher than N1.55 in 2022.

Further analysis revealed that gross earnings were up by 82.8 to N656.6 billion from N359.2 billion in H1, 2022.

Interest income appreciated by 69.3% from N383.3 billion compared to N226.4 billion in the corresponding period of 2022, while non-interest income amounted to N257.9 billion as against N120.6 billion.

Operating income for the period under review was up by 81.1% from N273.5 billion in H1, 2022 to N495.3 billion, while impairment charges for losses stood at N57.6 billion from N21.7 billion.

Total assets rose by 34.0% to N14.177 trillion as against N10.578 trillion as of December 31, 2022. Customer loans & advances recorded 38.9% year-to-date as of June 30, 2023, to N5.261 trillion from N3.789 trillion, while customer deposits stood at N 9.042 trillion, a year-to-date growth of 26.9% from N7.124 trillion.

Speaking on the Group performance, the Group managing director of FBNH, Nnamdi Okonkwo stated: “FBNHoldings has continued to deliver a strong financial performance despite the complex operating environment, thanks to our reinforced foundations, deep market understanding, strong risk management and execution capabilities.

“On the back of this and in line with our focus of driving further improvement in revenue generation and profitability, the Group delivered strong growth in gross earnings and profit before tax resulting in N656.6 billion and N206.3 billion respectively, for the first half of 2023 financial year.”

Popular Articles