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FBN Holdings directors, advisors to stay off shares for 12 days

By on March 9, 2016

Directors of FBN Holdings Plc have notified the Nigerian Stock Exchange (NSE) of their intention not to deal in the shares of the company from Monday till March 22, 2016.

Apart from directors, other advisers to the company will also not trade the shares of FBN Holdings. In a notification to the NSE, the directors said the Board will be meeting on March 22, to discuss the Group’s 2015 full year audited financials, and consider for recommendation, the payment of dividend, amongst other businesses.

However, the company said before the meeting, it would observe ‘Closed Period’ in line with the NSE listing rules.

According to the provision of the NSE, during the Closed Period, no director, person discharging managerial responsibility and adviser of the issuer and their connected persons, shall deal in the securities of the issuer.

FBN Holdings had recently warned that earnings for the full year ended December 31, 2015, would be lower than 2014.

“The reduction in earnings is as a result of the recognition of impairment charges on some specific accounts resulting from a reassessment of the loan portfolio within our commercial banking business. This reassessment was driven by the challenging macro environment coupled with fiscal and monetary headwinds, which have resulted in marked reduction in domestic output. This is a prudent measure being taken while the bank has commenced active remedial action on the specific impaired accounts,” the bank said.

However, FBN Holdings assured stakeholders that its merchant banking, asset management as well as insurance businesses remain strong and resilient.

“We reiterate our 2016 focus on restoring shareholder value by driving improvements in underlying asset quality, cost efficiency, enhancing revenue generation and extracting synergies across the Group, as well as growth through innovation,” FBN Holdings stated.

The shares of the company fell as the market reacted negatively to the earnings warning, which some market analysts said is a proactive measure.

The shares of FBN Holdings closed 15 kobo higher at N3.65 per share. Stockbrokers had said the current price of stock offers investors an unprecedented entry opportunity, saying “the market and companies will over the current economic headwinds. There is no better time to buy these stocks than now.