Femi Otedola to Pocket N1 Billion as First Bank Declares Over N136bn Profit

Femi Otedola to Pocket N1 Billion as First Bank Declares Over N136bn Profit

  • First Bank of Nigeria Holdings Plc (FBNH) has declared a final dividend of 50 kobo per share for the financial year ending December 2022
  • Nigerian billionaire businessman Femi Otedola stands to pocket N1 billion from his investment in FBNH
  • The bank's financial performance remains strong, with a profit of over N50 billion in the first quarter of 2023

First Bank of Nigeria Holdings (FBNH) has announced a final dividend of 50 kobo per share to shareholders for the year ending December 2022.

The dividend payout will total N17.948 billion, representing an increase compared to the N12.56 billion paid out in 2021.

First bank of Nigeria
First Bank Holding Company is on course to record better performance in 2023. Photo credit: First Bank

The bank's board of directors approved the decision, as stated in the FBNH corporate action announcement submitted to the Nigerian Exchange Limited (NGX) and obtained by Legit.ng.

Otedola top shareholder

Nigerian billionaire businessman Femi Otedola, First Bank's biggest individual shareholder, is expected to receive a substantial windfall from the dividend payout.

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Legit.ng checks reveal that Otedola has a total direct and indirect stake of 1,999,342,376 in First Bank, which accounts for 5.57% of the bank's total shares.

This means that Otedola will pocket N1 billion ($2.17 million) as dividend windfall from his stake in the bank.

First Bank's overall financial performance

FBNH reported a profit of N136.1 billion in its 2022 fiscal year, slightly lower than the N151.8 billion recorded in the previous year.

The bank experienced significant growth in gross earnings, surpassing N800 billion during the same period.

The positive trend has continued into 2023, with FBNH already achieving a profit of over N50 billion in the first quarter.

Otedola, a prominent FBNH shareholder, benefits greatly if the bank maintains this positive momentum throughout the year(2023).

Expert speak

Explaining, Otedola wealth growth in relation to First bank, Gilbert Ayoola a capital market expert said:

"The Nigerian banking sector has been one of the fastest-growing sectors in the Nigerian economy in recent years. When individuals own shares in banks, they become part owners of the banks.
"Owning shares in banks can also provide customers with an opportunity to benefit from the bank's growth and profitability. As the bank's profits increase, the value of the shares owned by the customers also increases, leading to wealth creation for the shareholders."

Zenith Bank chairman Jim Ovia makes over N13bn in 5 hours, buys more shares

In another report, Legit.ng revealed that Jim Ovia, the owner of Zenith Bank, has purchased additional shares in his bank.

The new shares were purchased after he made over N13 billion from President Tinubu's inaugural speech.

He made money between 9:30 and 14:30, the trading hours of the Nigerian stock market.

Source: Legit.ng

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