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FSDH Merchant Bank is cautiously optimistic that economic recovery will be achieved and sustained in 2017 and it’s poised to exploit business opportunities as they arise.
However the bank has called on shareholders and other stakeholders to collectively exercise patience and remain focus as the recovery will take a little bit more time to achieve.
“My message to shareholders is that I believe that the worst is over for the economy. At the moment there is a somewhat fragile recovery underway. We applaud many of the decisions that have been taken by the authorities especially the monetary authority to improve the environment. We solicit their patience as the recovery will take a little bit more time and we should collectively exercise patience, remain focus as we are on the right part”, Hamda Ambah, managing director/CEO, said in Lagos at the pre-annual general meeting of the bank.
The FSDH Group recorded a total asset size of N141.3 billion as at December 31, 2016, while the group’s shareholders’ funds stood at N27.87 billion in the same period.
This represents a small reduction (7.84%) from the N30.24 billion recorded as group shareholders’ funds as at December 31,2015.
The bank’s capital adequacy ratio remains strong at 22.76 percent against the minimum of 10 percent prescribed by the CBN for Merchant Banks.
The Group achieved a Profit before Tax (PBT) of N3.87 billion for the financial year ended December 31 2016. This represents a decrease of 18.01 percent when compared with the profit of N4.72 billion for the year ended December 31, 2015.
Profit after Tax (PAT) attributable to the group decreased by 20.05 percent to N3.27 billion from N4.09 billion for the previous year. Earnings per Share (EPS) for the group was 109 kobo, which is 32 kobo less than the 141 kobo that was earned in the previous financial year.
According to Ambah, the reduction in profitability is a reflection of the challenging state of the economy in the year under review.
During the period under review, all the bank’s subsidiaries posted profits. FSDH Asset Management (FSDH-AM), contributed a Profit after Tax of N319.54 million while Pensions Alliance Limited (PAL) and FSDH Securities (FSDH-SEC) contributed N988.39million and N47.36 million respectively to the Profit after Tax of the group.
The managing director disclosed that this year will mark the fifth year of the bank’s operations as a Merchant Bank. Consequently, the bank remains focussed on its goal of ensuring that it continues to deliver value and positive returns to all stakeholders.
“We will continue to stay the course and maximise shareholder value by constantly realigning our operations so we are poised to exploit business opportunities as they arise”, Ambah said.
HOPE MOSES-ASHIKE
