FBN 1:4 BONUS REFUSED?

Security & Exchange Commission (SEC) is yet to clear and register First Bank of Nigeria Plc (FBN) bonus of one for every four shares declared by the Directors of the bank for the year ended March 31 2008.

A source at First Registrars Limited confirmed this to Proshare NI today in Lagos Nigeria. “We have no clearance from SEC to go ahead and pay the bonus” the source affirmed.

“For the fact that a bonus is declared does not mean that we would just issue same, it has to be cleared and registered by SEC” the source said.

The source further affirmed that if there are new issues in the market, the Apex Capital Market Regulatory Body would be convinced that such issues to be given out are appropriate and are from the right source.

Proshare NI sought to confirm the issue with another source at FBN Capital. However our source at FBN Capital affirmed to Proshare NI that it is the duty of the Board of a company to approve and issue bonus to investors and not within the purview of SEC.

“This may be a recent development, which I may not be aware; that a company is awaiting SEC’s clearance to issue bonus declared by it to investors” the source said.

Our source at FBN Capital further affirmed that bonus issue is not a thing done in a hurry. “It takes a little time” the source confirmed.
This is coming on the heels of investors enquiries that has inundated the mail box of Proshare NI in respect of the 1 for 4 bonus issue recommended by First Bank’s Board of Directors.

However, as at the time of filling in this report, Proshare NI could not clarify the true status of the issue with either the officials of SEC or FBN.

As earlier published on Proshare NI’s website FBN audited results for the year ended March 31 2008 showed the bank made a Gross Earnings of N155.3 billion in year 2008 compared to N91.2 billion recorded in 2007.

In the same vein, its Profit after Tax (PAT) increased from N20.64 billion in year 2007 to N36.54 billion in the