…As FBN GMD pledges to restore shareholders value
By Chinenye Anuforo
Stock market resumed the first trading day of the week on a negative note as All Share Index (ASI) which rose by 6.6 percent last week to 28,902.55 basis points, fell by 1,231.47 points or 4.26 percent.
Market capitalization dropped to N9.5 trillion from N9.9 trillion recorded previously.
Most actively traded stocks in the course of the day’s trading were Fidelity Bank which sold 75.1 million shares worth N99.9 million, FBN Holdings which sold 70 million shares worth N277.6 million and Access Bank where investors exchanged 24.3 million shares for N137.9 million.
Forte Oil led the days price losers, dropping N10.31 to close at N195.9 per share, Dangote Cement followed with a depreciation of N8.12 to close at N167.01 per share, while Nigerian Breweries fell by N7 to close at N135 per share. WAPCO also dropped N6.44 to close at N76.57 per share as Guinness lost N5.49 to close at N104.32 per share.
On the other hand, Glaxosmithkline gained the most with 50 kobo to close at N21 per share. Etranzact trailed with a gain of 45 kobo to close at N5.46 per share while UPL advanced by 22 kobo to close at N4.64 per share.
At the end of the day’s trading, investors in 4,301 deals had traded a total of 335.1 million shares valued at N3.15 billion.
Meanwhile, the Group Managing Director, FBN Holdings Plc, Mr. UK Eke, has promised shareholders that the management of the company under his tenure would be committed to restoring shareholders value.
Eke who made the promise during the 4th Annual General Meeting (AGM) in Lagos assured shareholders of diligence, transparency and dedication to drive the company to profitability.
He explained that the Group has taken a hard look at its operating model and has begun to take bold steps in changing the way it does business. Eke said, “We have intensify our efforts to drive the contribution of non-bank subsidiaries to Group portfolis to 10 per cent through enhanced coordination and synergy realisation.”
He added that FBN Holdings has overhauled its risk management process to improve its asset quality and drive down non-performing loans and cost of risk in the medium term. Even as the company intensifies its portfolio review for the purpose of effectively deploying capital to enhance its return to shareholders.
Consequently, he pledged that the Group’s financial numbers will significantly improve across all matris in the medium term and its leadership position will be restored with value created for the stakeholders.
Also speaking at the AGM, the Chairman of the Group, Oba Otudeko told the shareholders that 2015 was challenging but FBN made significant progress in the execution of its ambitious but attainable three-year strategic plan.
He said despite the challenges the Group realised an additional N2.3 billion from revenue synergies through collaboration among the various strategic business units and cross-selling.
“Given the performance of all operating companies, we are confident that significant oppourtunities for improved synergistic benefits exist within the Group”, Otudeko assured.
Looking into the future, he said the company will continue to focus on effective execution of its strategy and on delivering value to shareholders.
However, shareholders of the company lauded the management of the Group for its performance in 2015 even as they charged them of improved performance this year.
The shareholders also approved the total dividend of N5.38 billion translating to 15 kobo per shaare recommended by the board of FBN Holdings.
Consequently, the dividend warrants will be posted on May 30, 2016 to members whose names appear in Registrar of members t the close of business on May 6, 2016.