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Who is the real owner of First Bank?

Published in Corporate Ownership 2 mins read

First Bank is currently owned by FBN Holdings PLC, a prominent financial services group. Rather than a single individual or entity, FBN Holdings PLC has a highly diversified ownership structure, comprising over 1.3 million shareholders. This means the "real owners" are the vast collective of these shareholders.

Understanding the Ownership Structure

First Bank operates as a subsidiary under its parent company, FBN Holdings PLC. This model is common among large financial institutions, where a holding company oversees various business units, including banking, insurance, and asset management.

Key Aspects of First Bank's Ownership:

  • Parent Company: FBN Holdings PLC holds the ownership of First Bank.
  • Publicly Traded: FBN Holdings PLC is a public company, which means its shares are traded on stock exchanges.
  • Diversified Shareholding: The ownership is spread across a large number of investors. With more than 1.3 million shareholders, no single individual or small group holds a dominant stake, ensuring broad-based ownership.
  • Historical Context: First Bank was originally founded in 1894 by Sir Alfred Jones. However, its ownership has evolved significantly over more than a century to its current structure under FBN Holdings PLC.

What Diversified Ownership Means

Diversified ownership, especially with millions of shareholders, implies that:

  • No Single Controlling Shareholder: There isn't one person or entity that owns more than 50% of the company's shares, preventing individual control.
  • Collective Ownership: The company is effectively owned by its numerous shareholders, who collectively exert influence through their voting rights at annual general meetings.
  • Market-Driven Governance: Decisions are typically made by a board of directors, elected by these shareholders, and are influenced by market dynamics and regulatory frameworks.

Ownership Overview Table

To illustrate the layers of ownership:

Entity Relationship to First Bank Current Status/Ownership Model
First Bank The banking institution Wholly owned subsidiary
FBN Holdings PLC Parent company of First Bank Publicly traded holding company
Over 1.3 Million Shareholders Owners of FBN Holdings PLC Collective, diversified ownership

This structure ensures that the bank's governance is distributed among a vast number of stakeholders, reflecting a modern corporate ownership model.