Shareholders urge FBN Holdings to overhaul internal control system

Shareholders of FBN Holdings Plc on Friday called on the bank to overhaul its internal control system in tune with modern technology.
The News Agency of Nigeria reports that the shareholders made the suggestion at the company’s First Annual General Meeting held in Lagos.
Timothy Adesiyan, the President, Nigeria Shareholders Solidarity Association, said that the company’s information technology system needed to be improved upon for efficient service delivery.
He said that although the company had a good financial year ended December 31, 2012, it needed to overhaul its internal control system.
Sunny Nwosu, the National Coordinator, Independent Shareholders Association of Nigeria, said the company’s dividend was the best in the industry.
Nwosu, however, urged the company to increase its deposit mobilisation drive by spreading out to remote places to encourage saving culture among Nigerians.
He told the management to increase its deposit mobilisation drive by spreading out to remote places to encourage saving culture among Nigerians.
Boniface Okezie, the President, Progressive Shareholders Association of Nigeria, also lauded the company’s improved result in spite of the economic challenges.
Okezie said: “All the subsidiaries that make up the holding company must be up and doing for value creation and higher dividend in the years ahead.”
The dividend of N32.63 translated to N1 per share against the dividend of N26.12 billion or 80 kobo per share paid in 2011.
Bello Maccido, the Chief Executive Officer of the company, attributed the growth to the collective efforts of all the company’s subsidiaries.
Maccido said that the company would work harder in the years ahead to enhance the shareholders’ returns on their investment.
He said that the company reinforced the banking group’s position as a retail franchise with additional 70 branches in 2012 to increase savings and number of depositors.
Maccido said that its current total branch network stood at 807.
Meanwhile, the company recorded gross earnings of N359.8 billion in 2012 against the N273.8 billion posted in 2011, an increase of 31.4 per cent.
Profit before tax stood at N92.7 billion against the N35.8 billion declared in the corresponding period of 2011, an increase of 158.5 per cent.
The profit after tax grew by 306 per cent to N75.7 billion against the N18.6 billion recorded in the preceding year.
Its operating income rose by 25.8 per cent to N298.3 billion in contrast to the N237 billion in the previous year.
The customer deposits also increased to N 2.4 trillion from the N2.0 trillion posted in 2011.
Its total assets grew by 11.4 per cent from N2.9 trillion in 2011 to N3.2 trillion IN 2012.