Credite to shore up capital base, strengthen business for profitability

As part of an effort to strengthen its business strategy and position the firm for profitability, the management of Credite capital has revealed that it is working to increase its capital base well above regulatory requirements.

“Yes, we are looking at increasing our share capital base to be able to operate very well in this inflated economy. And if we achieve that, we are going into three strategic objectives or projects where we want to engage in the all-round digital transformation of our business process,” Segun Ogunleye, MD/CEO, Credite capital finance and investment limited, said during the recent 7th Annual General Meeting (AGM), which saw the board of directors approving a N40m dividend payout for shareholders.

According to him, the firm is also going to focus on business expansion by diversifying its income base and talent optimisations. He disclosed that the recapitalisation drive is coming on the back of the CBN’s review of the banking sector.

“We foresee the possibility of CBN coming to review the share capital base of the finance companies, and that is why we are not waiting. In 2013, CBN called a stakeholder meeting whereby they increased the share capital of the finance company from N20 million to N100 million,” he said.

Tokunboh Abudu, chairman, Credite capital said the company will continue to overhaul its operations by keeping abreast of new technology and employment of skilled professionals. According to him, the firm’s welfare package is designed to empower, motivate and inspire staff to give their best for the growth of the company.

Speaking on the financials, Abudu said that the firm was able to weather the storm and improve its bottom line in the year under review. “Profit before tax (PBT) grew by 22.6 percent year-on-year to N106.3 million from N86.7 million while Profit after Tax (PAT) also witnessed a 17.9 percent growth to end the period to N82.9 million from N70.3 million in 2022. This stellar performance was supported through diversified earnings from the business.”