FBN Holdings Plc, a leading financial institution, has announced a dividend payout of N14.35 billion for the year ended December 2023, equating to 40 kobo per share for its shareholders.
This decision comes after the company released its full-year 2023 financial results following a period of regulatory delays.
Despite paying the same dividend amount in 2022, FBN Holdings saw no growth in dividends for 2023. With its current share price at N20, the dividend yield stands at a modest 2%. Comparatively, other major banks like UBA, GTCO, Access Corporation, and Zenith Bank declared higher dividends per share.
The announcement of the dividend coincided with an 11% drop in FBN Holdings’ stock price last week, indicating low demand for its shares. However, the company reported impressive financial performance for 2023, with a record-high profit after tax of N310.4 billion. This marked a significant increase from the N136.3 billion reported in the previous year.
Key financial metrics also showed positive trends, including a 51% rise in Net Interest Income, a substantial increase in Fees and Commissions, and a doubling of Earnings Per Share (EPS). Additionally, the company’s first-quarter 2024 results revealed a pre-tax profit of N238.5 billion, a remarkable 310% increase year on year.
The dividend will be paid to shareholders listed on the register as of August 13, 2024, with the actual payment scheduled for August 23rd, 2024. Meanwhile, FBN Holdings’ share price closed at N20.45 on May 24, 2024, marking a 9.3% decline from its previous closing price and a 13.2% decrease since the beginning of the year.
Investors should closely monitor FBN Holdings’ financial performance and market trends to make informed decisions about their investments.
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