Business
FCMB Assures Shareholders Of Dividend In Current Year
Jonathan Long, Chairman of First City Monument Bank Plc (FCMB) has assured shareholders that dividend payments would resume at the end of the current financial year.
Long told shareholders at the bank’s 26th Annual General Meeting for the year ended April 30, 2009 that “due to significant decline in profits from the exceptional provisions, and the need to maintain a conservative capital retention strategy, the banks proposed that shareholders forgo dividend this year in the confidence that payments will resume at the end of the current financial year”.
During the year, gross earnings grew by 36 per cent from N52.8 billion in 2008 to N11.7 billion as of April 30, 2009.
However, as a result of significant increase in loan loss provisions, profit after tax declined by 74 per cent from N15.1 billion to N3.9 billion.
The chairman maintained that the bank had delivered respectable financial results in spite of having to operate in a turbulent global and domestic environments, and of having made substantial provisions on its loan book in order to reflect turbulence of the economic environment.
“The board is confident that as we slowly return to a more stable and positive business environment, the bank is well positioned to utilise those opportunities which always accompany economic recovery following a significant downturn, such as we are now experiencing”.
Managing Director, Ladi Balogun, also stated that business of the bank has been sufficiently diversified to withstand economic downturns, while certain business segments have proven to be countercyclical, particularly micro-lending business where non performing loan ratios remained below two per cent of total loans and fixed income and currency trading activities.
“Our strategy to focus on retail, investment and transaction banking remains uncharged. Our focused diversification has served us well allowing us to focus on areas that respond better in a downturn”, he added.