The FSDH Merchant Bank Group’s subsidiaries remained profitable in 2016 despite a challenged business year. Group’s profit after tax (PAT) for the year was N3.27 billion, having decreased 20 per cent to from N4.09 billion the previous year.
Earnings per share (EPS) stood at 109 kobo, 32 kobo less than the 141 kobo earned in the previous financial year.
FSDH Merchant Bank, cautiously optimistic that economic recovery will be achieved and sustained in 2017, is poised to exploit business opportunities that will arise in the recovering economy as all its subsidiaries remained profitable in 2016.
“My message to shareholders is that I believe that the worst is over for the economy, Hamda Ambah, Managing Director and chief executive of FSDH said in Lagos during the pre-annual general meeting of the bank.
The bank’s capital adequacy ratio remains strong at 22.76 per cent, ahead of the 10 per cent minimum prescribed by the Central Bank of Nigeria for Merchant Banks.
The Group’s total asset assets stood at 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.
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
