By PETER EGWUATU, MICHAEL EBOH & NKIRUKA NNOROM
First Bank of Nigeria (FBN) Plc , has disclosed plans to list its holding company, FBN Holdings, on the Nigerian Stock Exchange, NSE, by the second half of 2012 after getting approval from regulatory authorities and shareholders, just as it recorded a 26 per cent growth in gross earnings for the financial year ended December 31, 2011.

Speaking at the presentation of the facts behind its figures on the NSE, Managing Director of the bank, Mr. Bisi Onasanya, said the company is considering canceling the shares of its subsidiaries and transferring it to the holding company which will subsequently be listed on the Exchange.

He however, assured that this will be done in accordance with the necessary rules and regulation, after securing the clearance of the regulatory authorities, while ensuring that it satisfies all the necessary conditions.

According to Onasanya, “ In deference to Central Bank of Nigeria’s, CBN,  policy that banks should divest from their non-core banking operations, First Bank will off load First Registrars and some other subsidiaries, while a holding company will be formed and all the existing subsidiaries, including First Bank, will become a subsidiary of that company.

He said the listing of the holding company will pave way for the delisting of First Bank Nigeria Plc.

Onasanya disclosed that the bank’s shareholders will get equal proportion of their shares in the holding company when it is listed, while ensuring that the delisting will be conducted in a manner that is transparent and fair to the existing shareholders of First Bank.

“This will present a better deal for our shareholders, especially as they will get equal proportion of their shares in the new holding company,” he noted

Onasany further stated that the new structure will give shareholders the opportunity to own stakes in a bigger company, having a number of subsidiaries.”

He said the bank is poised to deliver consistent and good returns to investors and other stakeholders.

While commenting on the financial performance for 2011, the First Bank boss said, “ The bank recorded 27.6 per cent growth in gross earnings to N296.3 billion as against N232.1 billion in 2010;  45.6 per cent growth in operating income to N259.2 billion as against  N178.1billion in 2010 ; Non-interest income contribution of 25.6 per cent as against  24.3 per cent in December 2010; 93 per cent growth in profit before tax and exceptional item to N65.6 billion as against  N34 billion in 2010;  48 per cent growth in profit before tax to N50.1billion as against N33.8billion in 2010;    Cost to income ratio: 56.8 per cent  from 67.0 per cent in 2010.”

Other performance indicators show: After tax ROAE 13.0 per cent from 9.6 per cent in 2010;  After tax ROAA 1.8 per cent as against  1.4 per cent in 2010; Earning Per Share( EPS) was N1.40 as against  N0.95 in 2010; Net interest margin: stood at 8.0 per cent from 6.1 per cent in 2010.