FSDH Merchant Bank shareholders approve N2.60bn dividend payout

Shareholders of FSDH Merchant Bank limited have approved the sum of N2.60 billion as dividend payment for the year ended December 31, 2015.

The amount translates to 93.20 kobo per share which is also 66.45 kobo more than the 26.75 kobo per share paid at the end of the 2014 financial year.

This is coming after the Group recorded N4.09 billion profit after tax (PAT) in 2015, which is 34.98 percent higher than N3.03 billion recorded the previous year.

Osaro Isokpan, chairman said despite the challenging business environment, in 2015, the bank performance was encouraging.

He said the increase in profitability resulted from an increase in interest income as well as fee and commission income.

“It is a confirmation that our efforts to expand our operations and product mix to reap the full benefits of our Merchant banking licence are beginning to yield the desired results. We are therefore confident that we will continue to maximize shareholder value by constantly re-inventing and realigning our operations and services to exceed the expectations of our various stakeholders”, he said at the annual general meeting held in Lagos.

One of the shareholders, oyinkan Adewale an institutional investor said the bank has been consistent in performance as well as dividend payout adding that there is stillroom for improvement in all ramifications.

He said the bank needs to work on reducing expenses, it needs to look out for more high yielding investment instruments aside the conventional one and that if it continues to keep to the growth the sky will not be its limit.

What we shareholders are after is performance and good dividend payout and FSDH has been consistent in that area. I was doing analysis some months ago and I discovered that in terms of dividend, the bank has out paid more than the principal so one has made his money, what is remaining now is free money.

The bank has been consistent in its performance. The 2015 performance is a welcome development compared with the last performance.

He said that the persisted bear market has affected shareholders investments, specifically in the equities but expressed optimism that with the measures put in place by the regulator such as the corporate governance index, the investments are protected.

The chairman said in spite of the challenges in the economy in the financial year 2016, the bank has identified some opportunities which it is poised to take advantage of.

HOPE MOSES-ASHIKE