FSDH Merchant Bank refocuses to drive profitability

FSDH Merchant Bank will focus on the products that will drive its profitability in the coming financial year, Osaro Isokpan, chairman, has said.

Leveraging its culture of excellence and conservatism, he says the company will strive to meet the expectation of shareholders in the area of incremental growth in capital, dividend returns, returns on capital and excellent corporate image.

Isokpan, who spoke with journalists at the second annual general meeting held in Lagos, says “so far, we have had a culture of excellence and I believe this will take the company far. Coming year, we expect our performance to be much better; we expect to focus on the products that will drive our profitability.”

According to him, the company was able to overcome the challenges posed by the downturn in the global economy, which also affected the Nigerian economy in 2013.

“Given the global economic trend, when most country’s economy nose-dived, Nigeria was not expected to be different. As it affects us, it affects institutions’ performance all over the country. However, FSDH, given that it was our first year, our consolidation year, we have met expectations,” he says.

Femi Agbaje, a non-executive director of the company, who also spoke with journalist at the event, acknowledges that the company’s performance is good, adding that despite the fact that the company recently got its merchant banking licence, it was able to post an impressive financial performance.

“We should not forget that they only recently just got the merchant banking licence and this is their first audited financials as a merchant bank. If you look at it and compare it with their peers in the industry, my view is that they have done well,” he says.

To Agbaje, the foundation is very strong, and also the brand. Even as a discount house that has been in operation, one must credit them. When most of the other discount houses have collapsed, FSDH has grown from strength to strength, and my belief is what you see in terms of performance is only the beginning of much better things to come.

Agbaje wants the Central Bank of Nigeria (CBN) to review its regulations in the area of consolidation of companies in a group structure, as he says, “I believe that the CBN can help in the area of how the company treats some of the other group companies that were operating when it was a discount house.”

HOPE MOSES-ASHIKE