UPDATE 1-First Bank Nigeria 2008 gross earnings rise 40 pct

(Adds First Bank comment)

LAGOS, July 10 (Reuters) - First Bank Nigeria's FBNP.LG gross earnings for its full year to March 31, 2009, rose 40.17 percent to 218.28 billion naira ($1.49 billion), the Nigerian Stock Exchange (NSE) said on Friday.

But the bank's net profit for the period fell 65.73 percent to 12.57 billion naira, details of its financials released by the NSE showed.

First Bank said its profit dropped 6 percent year-on-year after a one-off write down of 26 billion naira in stock market related transactions by its trustee and asset management unit.

"Margin lending wasn't a major part of our business, the bulk of the exceptional items are monies guaranteed for asset management clients", Yemisi Lanre-Phillips, the bank's head of investor relations told Reuters.

Directors of Nigeria's oldest banking group have proposed a dividend of 1.35 naira per share and a bonus issue of one for every six shares held by July 20.

($1=146 naira)

(Reporting by Oludare Mayowa and Chijioke Ohuocha; Writing by Tume Ahemba; Editing by Will Waterman and Simon Jessop)