How Femi Otedola Will Pocket First Financial institution’s $2.17-million Dividend

Nigerian billionaire Femi Otedola is ready to obtain a considerable windfall of $2.17 million from his stake in First Financial institution of Nigeria Holdings Plc (FBNH). The $2.17 million will solidify his place as considered one of Nigeria’s prime dividend earners within the banking sector. 

This growth comes because the financial institution’s board of administrators proposes a beneficiant dividend payout of $38.9 million. Their announcement reinforces FBNH’s dedication to rewarding its shareholders with spectacular returns. It additionally represents a outstanding achievement for FirstBank, Nigeria’s oldest business financial institution.

Recall that Otedola had acquired a further $33 million from his power-generating firm, Geregu Energy Plc, which recorded a formidable efficiency in its 2022 fiscal yr regardless of headwinds, together with revenue-damaging acts of vandalism on its gasoline pipelines.

FirstBank’s spectacular efficiency in 2023

In its 2022 fiscal year, FBNH reported a revenue of $295 million in its 2022 fiscal yr, barely decrease than the $330 million recorded within the earlier yr. Additionally, the financial institution witnessed sturdy progress in gross earnings which surpassed the spectacular milestone of $1.7 billion throughout the identical interval.

The constructive pattern continued into 2023, with FirstBank already incomes greater than $108 million within the first quarter. Its first-quarter revenue surged by double digits from $80 million in Q1 2022 to $109 million this yr.

This progress was primarily fueled by elevated curiosity revenue, rising from N109.45 billion ($237.2 million) to N179.61 billion ($389.2 million), and non-interest revenue, climbing from N64.05 billion ($138.8 million) to N94.95 billion ($205.76 million).

As a distinguished FBNH shareholder, Otedola benefits handsomely if the financial institution sustains this constructive momentum all year long. With the monetary companies group on observe to realize increased earnings, Otedola’s funding in FBNH is ready to generate substantial returns.