FCMB shareholders approve N4.9b dividend, N40b bond

By Bamidele Ogunwusi  / Lagos


Shareholders of FCMB Group on Thursday at its second annual general meeting approved the dividend of 25 kobo per ordinary share of 50 kobo each which was offered by the board of the Group, bringing the total package to N4.950 billion.

Shareholders of the bank also approved the proposal by the bank to raise N40 billion in debts, and convertible debt that will bring in new investors into its fold in the course of the current financial year.

Ladi Balogun -FCMB-GMD

Ladi Balogun -FCMB-GMD

Managing Director of the bank, Ladi Balogun, while speaking on the debt before the approval was given, said the it is expedient for shareholders to act now as this may be difficult to

He said: “We are seeking your permission to speak to investors. We may fall below a threshold of capital adequacy ratio of 18 percent we have set if you did not act know. The message here is that we need additional capital. If this is not approved, we may have to halt business till the end of the year. The proceeds will be used for activities that will raise the value of the Group”.

While speaking at the meeting, shareholders said despite several fees and penalties being paid by banks in the country, they are happy that FCMB is paying a dividend of 25 kobo, just as they warned regulatory bodies in the sector to lessen the burden on banks.

A shareholder activist, BonifaceOkezie, said the idea of banks being made to pay heavy fees to AMCON is depriving shareholders and investors from taking full benefit of their investment.

His words: “Regulators should leave us alone. They should allow us to take full advantage of our investment. They never consider the investors. Look at a situation where FCMB paid N4.9 billion to AMCON at the detriment of investors. It will soon result to a situation where Nigerians will lose interest in investing in Nigerian banks and we will then see where AMCON will get money from”.

Source : Independent

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