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FSDH Merchant Bank's Assures Shareholders of Improved Returns

May 5, 2014

Eromosele Abiodun

The chairman of FSDH Merchant Bank Limited, Mr. Osaro Isokpan, has assured stakeholders of a significant improvement in the company's financial performance at the end of the current financial year.

Isokpan who disclosed this at the company's annual general meeting (AGM) held in Lagos, also stated that that the company was able to overcome the challenges posed by the downturn in the global economy which also affected the Nigerian economy in 2013.

According to him, 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 noted.

He maintained that the company, leveraging on its culture of excellence and conservatism, 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.

"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," he added.

Also speaking, Mr. Femi Agbaje, a Non-Executive Director of the company, noted that despite the fact that the company recently got its merchant banking license, it was able to post an impressive financial performance.

He said, "The company's performance is good. We should not forget that they only recently just got the merchant banking license 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.

"The foundation is very strong, and also the brand. Even as a discount house which has been in operation, one must credit them. When most of the other discount houses have collapsed, FSDH have 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."

Continuing, he appealed to the Central Bank of Nigeria, CBN, to review its regulations in the area of consolidation of companies in a group structure.

He said, "I believe that the Central Bank of Nigeria, 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.

"They are regulatory approvals that are still awaited that will allow FSDH Merchant Bank to consolidate some of the other companies in the group; wealth management, in particular and one or two other subsidiaries.

"The only regulation I think the CBN should look at is how they will allow discount houses consolidate some of the other group companies and that will show the true picture of the company."

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Source: AllAfrica

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