In recognition that its future business prospects are positive, the board of Capital Bancorp plc has assured its shareholders of improved returns-on-investment.
“As we anticipate an improved global economic environment, we remain cautious positively about the outlook for the Nigerian economy. We are hopeful that the ongoing reforms of the Federal Government in the power sector on the back of the sale of power assets will bring about needed impetus for renewed growth in the economy which will have a positive impact on businesses in general.
“The outlook for the financial markets is upbeat in the medium to long term,” Olutola Mobolurin, chairman, Capital Bancorp plc told shareholders at the company’s 26th annual general meeting.
The new strategic direction mapped out and approved by the board of Capital Bancorp plc should return the company to a paying dividend in the 2014 financial year.
Among other businesses at the meeting, shareholders of the company received and adopted the consolidated annual report and account for the financial year ended December 31, 2013. The consolidated accounts represent the accounts for Capital Bancorp plc and Bancorp BDC Limited.
In line with the roadmap issued by the Financial Reporting Council (FRC) on the adoption of the International Financial Reporting Standards (IFRS) which requires all Significant Public Interest entities to prepare their financial statements based on IFRS, the company successfully complied with the directive and as such the financial statements were prepared based on IFRS.
The group’s gross earnings were moderated by the financial market situations from N439.372m in 9 months (annualised: N585.829m) as at December 31, 2012 to N354.031m as at December 31, 2013; a 39.57 percent decrease when annualised.
Operating loss before tax increased from a profit position of N188.739m in December 31, 2012 to a loss of N119.49m in December 31, 2013; while loss after tax was N132.628m in the review financial year compared to a profit after tax of N176.98m in December 31, 2012.
The group’s shareholders fund was N1.489bn as at December 31, 2013 as against N1.556bn in December 31, 2012.
Mobolurin noted that the company which was 25 years old in 2013 is upbeat about the opportunities in its lines of businesses like Bureau De Change and Leasing and remains hopeful that whatever shortfall from the capital market will be surpassed by incomes in these areas.
“Our company is on the path of sustainable growth and is being positioned for improved performance in the years ahead,” he added.
