Heavy sell-off in Guinness shares results in N6.9 billion market worth loss in a single day

0 5

Shareholders of FCMB Group Plc (www.fcmbgroup.com) have restated their confidence within the monetary establishment to maintain its spectacular efficiency and ship extra worth. The shareholders gave the commendation on the eighth Annual General Meeting (AGM) of the Group held on April 21, 2021 at its company head workplace in Lagos. They additionally unanimously accredited the cost of a dividend of N2.97 billion, translating to fifteen kobo per atypical share for the 12 months ended December 31, 2020, as towards 14 kobo per share the earlier 12 months.

The AGM was held nearly because of the prevailing COVID-19 (coronavirus) pandemic and streamed stay through www.fcmb.com/AGM to shareholders of the monetary establishment. This is in conformity with authorities’s directives on bodily distancing and the restriction on most variety of folks at each gathering because of the COVID-19 pandemic. The digital assembly can be in accordance with Section 254 of the Companies and Allied Matters Act 2020 and as accredited by the Corporate Affairs Commission.

FCMB Group is a holding firm divided alongside three enterprise teams; Commercial and Retail Banking (First City Monument Bank Limited, Credit Direct Limited, FCMB (UK) Limited and FCMB Microfinance Bank Limited); Corporate & Investment Banking (The Corporate Banking Division of the Bank, FCMB Capital Markets Limited and CSL Stockbrokers Limited) and Investment Management (FCMB Pensions Limited, FCMB Asset Management Limited and FCMB Trustees Limited).

The Chairman of FCMB Group, Mr. Oladipupo Jadesimi, together with the Group Chief Executive, Mr. Ladi Balogun; Company Secretary/General Counsel, Mrs. Funmi Adedibu; a Director of the Group, Mrs. Olapeju Sofowora; Executive Director, Corporate Banking & Investment Banking of the Group, Mr. Olufemi Badeji, representatives of the Central Bank of Nigeria, Securities and Exchange Commission in addition to leaders of shareholder Associations, have been current on the assembly.

Speaking on the AGM, the Co-ordinator of Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, praised the establishment for effectively working its affairs and the considerable progress recorded in key working areas.

According to him, “FCMB is a great institution and we are glad that its value is growing. The fact that it has been able to meet all its financial obligations to its creditors is a very good sign of strength. It also shows the seriousness of the management to remain worthy of doing business with. From the results, it is clear that the management has done its best to grow all the subsidiaries, thereby contributing significantly to profit and the overall performance of the Group. We appreciate the results and dividends declared by FCMB, while looking forward to many more years of prosperity”.

HotflexHotflex

Also commenting, the National Co-ordinator of Pragmatic Shareholders Association of Nigeria Mrs. Bisi Bakare, acknowledged that, “we are impressed by the digital transformation drive of FCMB which has impacted positively on customer service and financial inclusion. We commend FCMB for the introduction of paperless and cardless transactions at branches and other touch points. We are also happy that the Bank intervened to support the government and Nigerians to ease the problems caused by COVID-19 through various support. It is also a thing of joy to see the Bank carrying out several activities to grow businesses and empower Nigerians, especially youths. The 2020 results are a welcome development”.

The National Chairman, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, mentioned, “FCMB as a Group has done so well over the years in every aspect of business. The institution is growing rapidly with branches all over the country. It is also performing well in terms of innovation, technology and customer service. Profit and dividend are rapidly increasing going by the 2020 financial results. The dividend payment of 15k to shareholders is a very good one in the midst of the difficult situation caused by the COVID-19 pandemic. Overall, FCMB Group has done excellently well and we are optimistic of a brighter future”.

Presenting the report for the 12 months ended December 31, 2020, the Chairman, Mr. Jadesimi, assured that FCMB Group is well-positioned to proceed to reach the years to come back, even within the face of the COVID-19 pandemic. He attributed the optimism to the selections that the monetary establishment has remodeled the previous few years, particularly these round leveraging new digital know-how, to develop entry to monetary transactions.

According to him, ‘’the Board of Directors has adopted a coverage that seeks to offer traders with a steady and sustainable type of capital distribution, with consideration given to the expansion and capital necessities of the enterprise, thereby maximising long-term share worth for shareholders’’.

On his half, the Group Chief Executive of FCMB Group Plc, Mr. Ladi Balogun, reported that regardless of the difficult macroeconomic setting, the Group grew revenue after tax by 13.4% to N19.7billion. He added that this improve had a direct correlation with earnings per share, which grew from 87 kobo in 2019 to 98 kobo in 2020, whereas return on common fairness additionally rose to 9.2% from 9%.

He acknowledged that, “our businesses continue to improve with growth in other key indicators, such as loans and advances 14.9% and total assets 23.4%. Customer deposits grew by 33.3% to over N1.2 trillion with a large portion of the growth coming from current and savings accounts. Our customer base in the Group also increased from 6.8 million to 8.3 million. Our investment management businesses increased their assets by 23% to almost N500 billion at the end of the year’’.

Mr. Balogun further reported that, “across the Group, our digital transformation gathered momentum, with the total number of internet banking growing by 43% to 6.6 million. Transaction volumes from mobile banking (App and USSD) grew by 74% in 2020. Our digital loans grew from N14.5 billion in 2019 to N54.6 billion at the end of 2020. Innovation and efficiency gains will be the key pillars on which we seek to raise our game in the near future. We expect that in 2021, we will continue with the strides we have made with our digital initiatives, as our technology platforms and products continue to contribute to our performance and competitiveness. We will remain resilient and innovative in charting new avenues for growth. We will also remain committed to elevating the quality of life of all our stakeholders’’.

Speaking on the response of FCMB Group to the challenges of COVID-19, he disclosed that the financial institution contributed immensely to the efforts at combating the spread of the pandemic and alleviating the pains of the most vulnerable members of the society by donating N250 million to the CACOVID initiative.

The Group Chief Executive added that, “we also supported state governments across the country to provide testing, palliatives, various medical items, including Personal Protective Equipment and ambulances to assist them effectively equip and secure health workers. We also provided catalytic support for givefood.ng. Through this initiative, one million vulnerable Nigerians had access to meals during the height of the government lockdown’’.

FCMB Group and its subsidiaries have consistently proved their mettle as resilient institutions with significant improvement on all financial fundamentals over the years.

Among other results for the year 2020, the Group’s gross revenue increased to N199.4 billion, a 10% increase from N181.3 billion achieved in 2019. The results also showed enhanced customers confidence in FCMB, as deposits grew by 33% to N1.3trillion from N943.1billion in the previous year. Loans and advances surged by 15% to N822.8 billion as at December 2020. Total assets of the Group increased by 23% to N2.06 trillion last year. Moreover, FCMB Group’s net interest income was up by 20% to N90.8 billion for the full year 2020 from N76.0 billion in 2019. Non-interest income equally increased to N37.8 billion, representing a 9% growth, as against N34.8 billion prior year. The Group’s Assets Under Management (AUM) also sustained its growth trajectory by rising to N495.2 billion for the year ended December 2020, up by 23%.

Similarly, capital adequacy ratio remained stable at 17.7% for the retail and commercial banking subsidiary of the Group (that is, First City Monument Bank). The capital adequacy ratio of 17.7% is above the benchmark set by the Central Bank of Nigeria for deposit money Banks in the country. Liquidity ratio of the Bank stood at 34.2% as at the end of the financial year 2020, indicating that the financial institution is in a very healthy position. Non-performing loans to total loans ratio stood at a modest 3.3%.

Analysts have already expressed broadly positive views on FCMB’s 2020 financial results. An analyst described it as, “very encouraging”.

A monetary professional acknowledged that, “the 2020 results of the Group is a clear indication that the business is on a stronger pedestal with capacity to deliver more value to shareholders, the market and other stakeholders”.

FCMB Group is a frontline monetary companies establishment in Nigeria with subsidiaries which might be market leaders of their respective segments. Having efficiently reworked to a retail banking and wealth management-led group, FCMB has continued to differentiate itself by way of innovation and the supply of remarkable companies.

Click here for the Source

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More