First City Monument Bank (FCMB) has said that proceeds from divestment of non-banking subsidiaries of the bank would be paid to shareholders as dividend in 2013.
Announcing this at the bank’s 30th Annual General Meeting (AGM) on Wednesday in Lagos, Group Managing Director of the bank, Ladi Balogun, said that the proceeds would be those from the disposal of City Securities Registrars Ltd, Fin Insurance and Fin Registrars.
According to him, the bank was awaiting the necessary regulatory approvals before announcing the successful buyers to the shareholders and the public.
The divestment in the subsidiaries was in line with the Central Bank of Nigeria (CBN) new banking rules.
The FCMB boss also said that the disposed companies’ shares would not be listed on the Nigerian Stock Exchange (NSE).
He assured the shareholders of robust dividend in the years ahead, adding that the bank would increase the use of electronic channels to drive income.
“We will find other means of creating values to all our customers and stakeholders,” the GMD said.
At Wednesday’s meting, shareholders approved the bank’s bonus issue of one share for every 25 shares held by its shareholders.
Sunny Nwosu, the National Coordinator, Independent Shareholders Solidarity Association of Nigeria (ISAN), commended the management for the impressive result.
Nwosu urged the bank to introduce payment of interim dividend to compensate shareholders for non-declaration of dividend in 2012 financial year.
Also speaking at the meeting, Timothy Adesiyan, President, Nigeria Shareholders Solidarity Association (NSSA), said that the bank’s share was under priced on the NSE and called on the regulators to look into it.
Meanwhile, the bank, during the period under review, recorded gross earnings of N116.83 billion against N75.70 billion posted in 2012 while gross earnings rose by 54.3 per cent.
Profit after tax for the period grew by 256 per cent to N15.12 billion in 2012, while profit before tax appreciated by 252.1 per cent during the period to N16.23 billion. Its loans and advances improved by 10.7 per cent to N357.79 billion against the N323.35billion declared in 2011. Also within the period, total assets appreciated to N909billion in 2012 in contrast to the N895 billion in 2011.