Nigerian billionaire Femi Otedola is set to receive a substantial windfall of $2.17 million from his stake in First Bank of Nigeria Holdings Plc (FBNH). The $2.17 million will solidify his position as one of Nigeria’s top dividend earners in the banking sector.
This development comes as the bank’s board of directors proposes a generous dividend payout of $38.9 million. Their announcement reinforces FBNH’s commitment to rewarding its shareholders with impressive returns. It also represents a remarkable achievement for FirstBank, Nigeria’s oldest commercial bank.
Recall that Otedola had received an additional $33 million from his power-generating company, Geregu Power Plc, which recorded an impressive performance in its 2022 fiscal year despite headwinds, including revenue-damaging acts of vandalism on its gas pipelines.
FirstBank’s impressive performance in 2023
In its 2022 fiscal year, FBNH reported a profit of $295 million in its 2022 fiscal year, slightly lower than the $330 million recorded in the previous year. Also, the bank witnessed robust growth in gross earnings which surpassed the impressive milestone of $1.7 billion during the same period.
The positive trend continued into 2023, with FirstBank already earning more than $108 million in the first quarter. Its first-quarter profit surged by double digits from $80 million in Q1 2022 to $109 million this year.
This growth was primarily fueled by increased interest income, rising from N109.45 billion ($237.2 million) to N179.61 billion ($389.2 million), and non-interest income, climbing from N64.05 billion ($138.8 million) to N94.95 billion ($205.76 million).
As a prominent FBNH shareholder, Otedola benefits handsomely if the bank sustains this positive momentum throughout the year. With the financial services group on track to achieve higher earnings, Otedola’s investment in FBNH is set to generate substantial returns.
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