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ADH records N768.5m PAT in 2011

By Ahmed Ibrahim

Associated Discount House Limited has recorded a Profit After Tax of N768.5 million in its 2011 financial year, representing a decline of 64.4 per cent, compared to N2.16 billion it recorded in the previous year.

Speaking at the 18th annual general meeting of the company, the company chairman, Mr. Aigboje Aig-Imoukhuede said that the company recorded Gross Earnings of N7.47billion and a Profit Before Tax (PBT) of N866.78million while the Shareholders’ funds improved to N5.83billion from N5.057billion in the year ended.

He said that the result reflected a remarkable improvement on the 2010 performance of the company, adding that the improved results for the financial period under review attested to the fact that the board and management of the company would continue to steer it path of growth and profitability to build on sound corporate governance.

He maintained that despite the challenges in the global economy witnessed in 2011, the company still maintain it position in the capital and commodities markets.

He said, “The Discount House sub-sector continues to face challenges mainly from stiff competition from commercial banks. Significantly changes in the monetary policy rate (MPR) from 6.5% at the beginning of the year to 12% at the end of the year also had significant implications on funding cost as well as market risk.

“CBN carried out several mop-up exercises leading to liquidity tightness to reduce pressure on foreign exchange demand. The tight liquidity regime had significant implications for our operation which include increase in funding costs; drop in FGN Bond prices and its impact on the existing bond portfolio and market volatility and uncertainty”.

He stressed that the board of directors, management and staff of ADH would leverage on the lessons learnt from the critical issues which are shaping and redefining Nigeria’s financial landscape to consolidate and remain focused on strategic transformation of the company.

“We will explore emerging opportunities within the scope of the revised discount house guidelines to deepen our business while taking calculated risks that we fully understand and can quantify in line with effective risk management structures.

“As a discount house and Primary Dealer/Market in Federal Government bonds, we will remain focused on our core business of securities trading while we participate actively in market department and policy advocacy through the Financial Markets Dealers Association (FMDA).

“We will continue to expand our market share of customer segments whose risk profile is consistent with our moderate risk appetite and are perpetually optimistic that this stance will sustain our integrity as a financial institution of choice to our clients,” he added.


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