FCMB Shareholders Expect More Value, Gains in FY 2020

By Dipo Olowookere

Shareholders of FCMB Group Plc have applauded the management and board for the impressive results churned out by the company in the 2019 financial year.

National Chairman of the Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, said at the company’s Annual General Meeting (AGM) held this week that the performance was encouraging.

“FCMB Group performed very well in the financial year ended December 31, 2019. The result is encouraging, and dividend is growing.

“We urge the board, management and staff to continue in this positive direction. We look forward to seeing more value and gains this year,” Mr Okezie said at the meeting, which took place by proxy.

Another shareholder who spoke at the virtual AGM, Mr sunny Nwosu, who doubles as the Co-ordinator of Independent Shareholders Association of Nigeria (ISAN), praised the institution for efficiently running its affairs and the appreciable growth recorded in key operating areas.

“The fact that FCMB was able to hold the AGM, and a successful one for that matter, is a welcome development. It shows that the organisation is well prepared and very concerned about the interest of shareholders.

“We are happy about the result and the dividend payment. This will go a long way to provide some money for shareholders to survive the lockdown.

“We also note with appreciation the support provided by FCMB to the government, other bodies and businesses to mitigate the effect of COVID-19,” he said.

Also speaking at the AGM, the Group Chief Executive of FCMB Group Plc, Mr Ladi Balogun, assured that 2020 will see a number of the financial institution’s digital initiatives coming of age, adding that these are expected to be substantial.

“Our businesses continue to improve with growth in other key indicators, such as loans and advances, deposits and Assets Under Management (AUM), which grew by 13.1 percent, 14.7 percent and 28.3 percent, respectively.

“Our customer base also grew by 27.5 percent across the group from 5.5 million to 7 million. Overall customer satisfaction has shown positive trends, with a net promoter score of 31 in banking and 23 in asset management,” he said.

Mr Balogun further stated that, “The Commercial and Retail Banking Group grew its profit by 20 percent driven by improved performance in our consumer finance business, as we continue to expand our digital products offerings and channels.

“Commercial and Retail Banking remains the largest contributor to the Group’s profits with 92 percent. Assets managed by our Asset and Wealth Management businesses increased by over 28 percent to over N403 billion at the end of the year.”

Chairman of FCMB Group, Mr Oladipupo Jadesimi, while speaking at the gathering held at the company’s corporate head office in Lagos, stated that all the three business groups within FCMB Group Plc reported improved performances, in terms of higher earnings and profits, compared to what was achieved in 2018.

He expressed gratitude to shareholders for joining the meeting as well as their unflinching support, which has made FCMB to wax stronger.

“The board of directors have adopted a policy that seeks to provide investors with a stable and sustainable form of capital distribution, with consideration given to the growth and capital requirements of the business, thereby maximising long-term share value for shareholders,” he said.

Business Post reports that at the AGM, the 7th, shareholders unanimously approved the payment of a cash dividend of 14 kobo per ordinary share, which translates to N2.77 billion, for the year ended December 31, 2019.