By InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s top tier financial holdCo, FBN Holdings Plc said it paid N2.0 billion fine in the audited year ended December 31, 2015.
The company said as part of its operating expenses, it paid fines and penalties amounting to N1.901 billion in the review period.
FBNH says part of what makes its business model sustainable is to enrich customers’ experience through the proactive management of complaints and issues; it said 270,000 complaints were reported in 2015 compared to 77,000 the previous year.
The financial holdCo disclosed that so far, it has refunded N3.93 billion out of N63.40 billion claimed in 270, 529 resolved complaints; including pending complaints brought forward from 9,527 customers which it refunded N43.22 million from a total of N434.3 million claimed in the review period.
At the close of FBNH fourth annual general meeting (AGM) shareholders approved a dividend in the total sum of N5.38 billion; amounting to 15 kobo per 50 kobo ordinary share of the company compared to 10 kobo paid in 2014 end; indicating an increase in dividend payout of 50 percent in the review period.
According to FBNH, the 15 kobo per share dividend will be paid May 30, 2016 to members whose names appear in the register of members as at the close of business on May 6, 2016. Shareholders however, urged the board and management of the company to ensure a more robust dividend payout in future.
Net dividend amount unclaimed as at December 31, 2015 of FBNH is N3.92 billion, while that of First Bank of Nigeria Limited is N2.843 billion in the review period.
Mounir Gwarzo, the director general (DG) Securities and Exchange Commission (SEC) early this year disclosed that unclaimed dividends currently stands at N90 billion and advised investors in the Nigerian Capital Market (NCM) to register for e-dividend to ensure that the owners of the unclaimed dividends are paid their money.
He said. “e-dividend is very important because I believe it is going to be a major game changer, it is an issue we have had since the inception of this market whereby people buy shares and are unable to claim their dividend either because the warrant becomes stale, they change address or are living in an area that is quite far and it will take more than what the dividend warrant is worth and they will not want to go and collect it
“One of the things we will do once we are through with the registration is to see how those huge unclaimed dividends can be verified and paid to the owners. You know there is a limitation of the law that says after 12 years you cannot claim. But those that are below 12 years once people have registered and they are able to show proof that they are the owners of that dividend they should be able to claim that part of the unclaimed dividend,” he added.
Meanwhile, shareholders at the FBHN AGM passed a resolution to write down the company’s reserve with the sum of N19.5 billion which recognises the restructuring of convertible debt investments of the same amount in the capital reserves of FBN Capital Limited.
The financial holdco as at December 31, 2015 closed with gross earnings of N505. 2 billion compared to N481.8 billion recorded in 2014, according to FBNH, the 4.9 percent growth was driven by increased interest income on loans to customers and short-term investments.
Sunny Nwosu, president, Independent Shareholders Association of Nigeria (ISAN) hailed the earnings as one of the biggest earnings in the history of the banking industry in Nigeria. “We must applaud our board and management as FBNH records N505 billion earnings one of the biggest in the history of the banking industry in Nigeria,” he said.
Profit before tax (PBT) declined 77.1 percent to N21.5 billion from N94.1 billion declared a year ago. The financial holdCo says is as a result of high impairment charges taken in the 2015 financial year.
Share price of FBHN at the close of Thursday’s session on the Nigerian bourse gained 9.52 percent to N4.37 from N3.99 reported the previous session; showing a gain of 0.38 kobo per share.
