Shareholders of FBN Holdings Plc will receive a total dividend of N14.35 billion for the financial year ended December 2023, representing a total dividend of 40 kobo per share declared by the group.
This was contained in the company’s corporate action announcement to the Nigerian Exchange Limited (NGX) and obtained by the Nairametrics.
The company also recently released its 2023 full year results after a prolonged period of delay due to regulatory approvals.
Dividend Announced
The Board of Directors of the holding company recommended a dividend of 40 kobo per ordinary share of 50 kobo each, amounting to N14.358 billion.
- This company also paid its shareholders 40 kobo dividend in 2022 suggesting there was no growth this year.
- FBNH closed the week at a share price of N20 which suggest the current dividend of 40kobo per share delivers a dividend yield of just 2%.
- Other members of the FUGAZ stocks also declared much higher dividends with UBA, GTCO, Access Corporation and Zenith Bank declaring N2.8/share, N3.2/share, N2.1/share and N4/share respectively.
- The surprisingly low demand may have also contributed to the falling share price of the stock which dropped 11% last week.
Company results
The group reported a profit after tax of N310.4 billion, a significant increase from the N136.3 billion reported for the same period in 2022. This marks the highest profit ever declared by the financial services giant in its more than 130-year history.
- Net Interest Income rose to N548.9 billion, marking a 51% increase from N363.2 billion in the previous year.
- The Impairment Charge surged by 231%, reaching N227.4 billion compared to N68.6 billion in 2022. Fees and Commissions increased by 64% to N193.1 billion, up from N117.6 billion.
- The group’s Operating Profit grew by 127%, reaching N358 billion from N157.7 billion.
- Earnings Per Share more than doubled, increasing by 129% to N8.59 from N3.75.
The company also released its 2024 first quarter results showing a pre-tax profit of N238.5 billion representing a 310% increase year on year.
What you should know: The bank reported the dividend will be paid to shareholders who appear on its register as of August 13 2024 whilst the actual dividend will be paid a few days later on August 23rd 2024. The company did not declare any bonus shares.
FBNH closed trading on Friday, May 24, 2024 at N20.45 per share on the Nigerian Stock Exchange (NGX), recording a 9.3% drop from its previous closing price of 22.55 NGN.
The financial institution began the year with a share price of N23.55 but has since lost 13.2% off the price valuation.