Safetrust raises capital base to N5.3bn as shareholders approve 2k dividend payout

Safetrust Mortgage Bank Limited (Safetrust), one of Nigeria’s foremost primary mortgage banks, has increased its capital base from N2.77billion to N5.3 billion following the issuance of 2.5 billion fully paid ordinary shares of N1 each to Colebrook Investment Limited via Synergy Capital, a private equity fund manager.

By this development, the bank has surpassed the minimum capital requirement of N5 billion for a national operating licence and has  subsequently obtained the Central Bank of Nigeria (CBN) approval for both the capital injection and national mortgage licence.

Akin Opeodu, the chairman of Safetrust who announced this at the 2017 annual general meeting (AGM) of the mortgage bank held in Lagos recently, announced that a total dividend payment of N33,735,000.00 at 2k per share has been approved by the shareholders.

“Note that the sum represents 86 percent of the group’s profit for the year ended December 31, 2016,” Opeodu said.

Despite the challenges in the economy and hash operating environment that characterized 2016, Safetrust  was able to record a modest profit before tax (PBT) of N76.8 million for the financial year ended December 31, 2016.

The bank closed the year with over N1.5 billion in interest earnings and N8.1 billion in total assets.

“The financial year under review was a very challenging period during which the country’s economy declined into recession”, Opeodu noted.

He added that the challenging situation was worsened by increased volatility and uncertainty in the global economy, persistent decline in crude oil prices and incessant damages to oil installations in the Niger Delta that resulted in low levels of oil production that reduced availability of foreign currency for business”.

A major development at the AGM was the retirement of Yinka Adeola who has served as the managing director and chief executive officer of the mortgage banke for the maximum  period of two terms of 5 (five) years each. Akintayo Oloko was appointed the new helmsman of the mortgage bank.

Known for its strict corporate governance principles, Safetrust is managed by a 9-man board of directors and has branches in Ikoyi, Ikeja and agent banking services in FCT, Abuja. KPMG Professional Services was reappointed and retained as external auditors to the bank for another term.

 

CHUKA UROKO