First Bank shareholders approve N10bn authorised capital
August 30th, 2006 mishacko || mishacko@yahoo.co.uk
By Mishack Okpara
Shareholders of First Bank of Nigeria Plc have approved an increase in authorised share capital of the bank from N3 billion of six billion ordinary shares of 50 kobo each to N10 billion through creation of additional 14 billion ordinary shares of 50 kobo each. At the 37th yearly general meeting of the bank at held in Lagos last Thursday, the shareholders also approved a mouth-watering gross dividend of N5.24 billion, or N1 per share and a bonus of one for one earlier recommended by the board of the bank.
Meanwhile, the increase in authorised share capital of the bank has fuelled speculations that the bank might be preparing to float new issue to put the bank’s equity base beyond the $1 billion capital base specified by the Central Bank of Nigeria for Nigerian banks wishing to manage the nation’s external reserves.
It should be noted that First Bank remains the only leading bank that has not floated new issue since the advent of the banking consolidation. Its contemporary, Union Bank of Nigeria had recently concluded a hybrid rights and public issue that pushed its capital base within the N100 billion.
The financial year ended March 31, 2006 saw First Bank Group with a group pre-tax profit of N21.8 billion as against N16.81 billion in 2005, representing an increase of 30 per cent. Gross earnings rose by 18 per cent to N67.44 billion as against N57.26 billion in 2005. Total assets rose by 31 per cent from N470.84 billion in 2005 to N614.84 billion in 2006. Group shareholders’ funds stood at N62.29 billion as against N48.73 billion in 2005.
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