Shareholders of First Bank Holding Plc have approved the management decision to raise N150 billion in additional capital for future expansion and also the appointment of Femi Otedola as a non-Executive Director, among other resolutions.
The approval which was given at the group’s Annual General Meeting (AGM) held virtually today despite being served with an ex-parte order of interim injunction by the Federal High Court in Lagos.
According to the resolution passed by the shareholders, 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.
Alhaji Ahmad Abdullahi, Group Chairman, FBN Holdings Plc, addressing shareholders at the meeting said the Group continued to push through difficult and economically challenging times, working with Board and Management teams across its subsidiaries to deliver strong topline revenues at year-end 2022.
“When we isolate the exceptional income from one-off recoveries made in the prior year, gross revenues grew by 31 per cent to close at N805.1 billion, driven primarily by higher net interest income (+59 per cent year-on-year) and supported by a marginal growth of 2 per cent in non-interest income.
“Our operating expenses grew by 9 per cent, less than the headline inflation rate of over 20 per cent. Despite the challenging environment, the Group was able to deliver a profit before tax of N157.9 billion.
He also told the shareholders that the balance sheet of the company remains strong, commanding a total asset base of N10.6 trillion, a customer deposit base of N7.1 trillion, and delivering decent returns on equity and assets of 14.5 per cent and 1.4 per cent, respectively.
Alhaji Abdullahi FBNH has revamped its risk management architecture which has continued to guide creation of risk assets and ensures that loans are extended to high-quality customers.
“This has been instrumental in reducing our non-performing loans (NPL) and in driving our NPL ratio down and within the regulatory threshold of 5 per cent. Working together as one team, the Group was able to internally generate N23.8 billion in cross-sell revenues by year-end 2022 (up 14 per cent from 2021),” he added.
