By Peter Egwuatu

Shareholders of FBN Holdings Plc have called for the winding up Asset Management Corporation of Nigeria, AMCON. Also, FBN Holdings have explained to its shareholders why it declared 10 kobo dividend and one for 10 bonus for the financial year 2014, stressing that it was done to further boost its business for the benefit of all stakeholders in the nearest future.

Mustafa Chike-Obi, MD, AMCON

The shareholders who spoke at the company’s AGM   stated that AMCON has outlived its usefulness. The shareholders’ groups leaders such as Mr. Boniface Okezie, Mr. Nonah Awoh, Sir Sunny Nwosu, Engr. Francis Orji, and Brigadier Ikwue commended the performance of the bank despite the harsh operating environment.

According to them “The AMCON and CBN levies, fines and fees had all contributed to robe the bank the higher profit it could have made. Also, affecting the bank’s performance is the CBN policy on CRR. We therefore demand for the winding up of AMCON since it is no longer contributing positively to the growth of banks.”

Explaining to shareholders at its Annual General Meeting, AGM held in Lagos, why it proposed a 10 kobo dividend, Group Chief Executive Officer, FBN Holdings, Mr. Bello Maccido said “ The 10 kobo cash dividend was considered by the Board in view of the fact that the company invested much money for the acquisition of Kakawa   Discount House Limited as wells as Oasis Insurance Plc . This will strengthen our earnings base and expand into sectors that are capable of providing us with the right opportunities to fortify our leadership position.

Notwithstanding, the one for 10 bonus is a boost to the bank quantified to the value, which is about 98 kobo per share as the bank’s share price hovers around N9.80 per share.”He further said “In spite of the highlighted challenges, FBN Holdings delivered solid financial results in 2014, across a number of key financial metrics including gross earnings and profit before taxes. This strong performance is championed by our commercial banking franchise, First Bank of Nigeria Limited and buoyed by our investment banking and asset management banking space.”

Maccido also highlighted the effect of the harmonisation of Cash Reserve Requirement, CRR by the Central Bank of Nigeria, CBN saying “We are going to lose about N64 billion as a result of the 31 per cent harmonisation of CRR for both the private and public sectors. No doubt, it will favour some banks that have more public funds than private funds. Nevertheless, we will apply some strategies to overcome some of these headwinds”

Commenting as well, Chairman of FBN Holdings, Mr. Oba Otudeko said “In the last two years since the inception of our new holding company structure, we have seen the steady transformation of our company into a unified African financial service group, with the various subsidiaries working seamlessly together to deliver superior customer solutions.”