By Babajide Komolafe

Associated Discount House has recorded pre_tax profit of N2.156 billion after making loss provisioning of N928 million caused by fall in the market prices of FGN Bonds and equities in its books.

Speaking at the 11th Annual General Meeting of the company held yesterday, its corporate head office in Lagos, the Chairman of ADH, Mr Mahmoud Lai Alabi stated that the profit of N2.156 billion after tax declared by the Company was after Mark _ to _ Market (MTM) provisions of N982 million for diminution on the portfolio of Federal Government of Nigeria bonds and investment in Equities balances as at the year ended December 2010.

He stated that this is in line with transparency in disclosure of Financial Information and also in accordance with International Accounting Standard (IAS _39). The declared profit showed a significant jump of more than N5.7 billion from the loss position of N3.423 billion recorded in 2009.

, Also speaking to Journalists after the event, the Managing Director/Chief Executive, Mr. Abubakar A. Jimoh said the Group recorded gross earnings ofN8.32B during the year and has a year_end Total Assets position of N29.46 billion. The Group Shareholders’ Fund increased by more than 69.5 per cent from N2.982 billion in 2009 to N5.057 billion in 2010.

Mr. Alabi further stated that the future of the Company is bright considering the significant progress made in 2010. He however noted that he is mindful that year 2011 may be challenging but assured all shareholders present that the Company will quicken the pace of transformation in order to sustain the progress.

He also said that he has every confidence that ADH team will remain focused as the Company progresses with the strategic transformation process. Business will be deepened by leveraging on emerging opportunities within the scope of the Revised Discount House Guidelines.

He added that the implementation of the Enterprise_Wide Risk Management (ERM) Framework will ensure adequate oversights on all areas that could lead to exposure for the Group.

He assured the shareholders that the Company will ensure that businesses are streamlined within approved risk appetite. As a Discount House and Primary Dealer/Market Maker in Federal Government bonds, the Company will ensure that it is strategically focused to deliver consistent and sustained value for the stakeholders.

Mr. Abubakar Jimoh the Managing Director also said: “The financial services environment was challenging in the last couple of years. The Board and Management of ADH Group took a very conservative approach to addressing all asset impairments in the last two years (2009/2010). Now that the cleaning_up is completed, we are set to transform and reposition the Group as one of the leading Financial Institutions in Nigeria. The improving results witnessed in 2010 and our return to profitability is indications of our employees’ hard work and resilience during the period.”