By PROVIDENCE OBUH

Shareholders of First Securities Discount House (FSDH) Limited  have commended the company for the performance recorded in its  financial year end December 31st 2010.

Mrs. Muhiba Abass, a shareholder representing Unico CPFA Limited who spoke to the press during the company’s Annual General Meeting (AGM). said despite the harsh operating environment and also considering the times the company has done well especially in the dividend declared.

“This years dividend is a bit lower and we all know in the Financial sector the interest rate has been going up and for financial Companies that are trading bonds definitely the revenue should go down considering that the rates were lower last year, but comparing them to their peers they are still doing well”.

According to Abass, “the Dividend is good although it is lower than last year is , but  still better than most others in the industry, so the Company is doing well”.

She advised the Company to look for other areas to improve its  franchise,  urging the Mnagement to  get more business so that the Company  can do better next year.

“We want better dividend, we hope that the environment will be conducive for the financial sector players to do better.
In addition, Mr. Daniel Agbor, representing KMC Investments Ltd said, “the dividend is fine though a little lower than last year but acceptable”.

Agbor stated “We are very pleased with the performance of the Company, 2010 was a very difficult year, the Management and the Company has done very well and we hope that performance in 2011 will be better”.

Speaking on the future outlook he said, “2011 is a difficult year, a transitional year for many institutions and I think FSDH as a discount house will hold his own, both in terms of its competitors and other discount houses and in terms of the banking industry generally”

Chairman of FSDH, Mr. Ibrahim Dikko lamented on some of the challenges of the company which is coming from the capital market stating that there is still a beat of apathy in trading.

Dikko noted that the market has been a little beat quiet as trading  is still very slow, also  not very strong performance is seen from the stock market side of the business, the bond trading has been fairly good but a beat flat.

“I think there was a little beat of apprehension in the system with the elections but now that every thing has gone well, I think that  the government  should focus on the economy and prudent financial management” he said.

The shareholders approved a dividend of N698.7 million, which translates to 25 kobo per share to be paid to  shareholders.

FSDH Group, which is made up of four Companies covering both the money and capital markets posted a profit before tax of N3.43 billion compared to N3.015 billion recorded in 2009, while its Profit After Tax rose to N3.050 billion from N2.63 billion recorded in 2009.