By Emma Una
NOTWITHSTANDING a drop in its profits after tax from N26,001,560 in the 2015 financial year, to N20,081,488 in 2016 owing to the adverse economic situation that characterised the 2016 financial year, First Royal Microfinance Bank has announced a dividend of five kobo per share for the financial year that ended December 31, 2016 to its share holders.
Making the announcement in Calabar during the 2016 Annual General Meeting, Chairman of Board of Directors, Holiness Olumba Olumba Obu, said though the profit after tax fell, the bank was able to increase its reserved fund from N31,039,155 in 2015 to N41,054,874 in 2016 which is a remarkable improvement by the bank.
Obu stated that the bank has received approval from the Central Bank to expand and move towards becoming a state-wide microfinance bank and was, therefore, poised to open branches in rural areas across the state and other suburban areas where there are no banks.
‘The Board of Directors and the management staff have taken several measures to mobilise shares for our bank. These efforts have yielded increase in the share capital of the bank from N55,636,300 in 2015 to N72,931,300 in 2016 which has expanded our capacity top open branches across Cross River State.”
He said that since the bank was witnessing rapid development, it will soon move to being a state wide microfinance bank to open branches across the country to allow more people benefit from the services of the bank in other parts of the country.
He assured that with recession over, the bank will pay make more profit in the years ahead and pay higher dividends to the shares in subsequent years and appealed for understanding by the share holders.