NaijaWire

First Bank pays huge dividend to shareholders

Abuja - First Bank of Nigeria Plc has paid a N24 billion dividend at N1.20k per share, for the financial year ended March 31, 2008, despite the recent downturn in the Nigeria capital market. This, the bank believes, is to reaffirm investors’ confidence in its ability to create value and keep faith with its promise to shareholders.

The total dividend payout, the largest in the history of Nigeria’s banking industry, is almost enough to get a new banking license – going by the N25 billion minimum shareholders’ funds requirement. The bank has also declared a bonus of one share for every four shares previously held before the close of the shareholders’ register on August 08, 2008.

At the Annual General Meeting (AGM) held at the Transcorp Hilton Hotel, Abuja, shareholders poured accolades on the bank while expressing their satisfaction with the “continued impressive performance”.

The bank’s total assets and contingents grew by 65.8 per cent to over N2 trillion, while profit before tax grew by 85 per cent to N48 billion.

The Annual Report and Accounts presented at the AGM, in line with the bank’s industry defining posture on corporate governance, contained a detailed and explicit dedicated section on risk management disclosure, described as unprecedented in this market.

In terms of shareholders’ funds, First Bank also consolidated its leadership position in the industry with an increase of N272.1 billion or 325.2 per cent from N83.63 billion to N355.63billion, which is higher than the shareholders’ funds of all the 89 pre-consolidation banks put together.

This stellar performance, according to the bank, is driven by an all-inclusive understanding of the growing customer service realities, and the elimination of impediments to effective service delivery through continued network expansion, product development, and strengthening of its global footprint.