Consolidated Discounts Post N1bn Profit
By Ayodele Aminu
Consolidated Discounts Limited has recorded an appreciable growth in all its performance indicators for the year ended May 31st, 2004, posting a pre-tax profit of N1.06 billion.
This indicates a leap of 28.5 per cent against N825.47 million recorded in the previous year.
Accordingly, all other performance indices such as post-tax profit and gross income grew by 37 per cent and 4.6 per cent, from N546.4 million to N748.8 million and from N5.7 billion to N5.9 billion respectively.
Shareholders' funds which shows the level of confidence investors have in the company moved up by 29.89 per cent, from N1.6 billion to N2.11 billion, paid-up share capital equally advanced by 25 per cent, from N1billion to N1.25 billion.
Owners of the company smiled home with a total dividend of N262.5 million as well as a bonus issue of 250 million ordinary shares of N1.00 each.
Given these scenarios, the company's total trading assets leapt by 15 per cent, from N23.28 billion to N26.74 billion.
Addressing shareholders at the 8th Annual General Meeting (AGM) in Lagos, Chairman, Consolidated Discounts Limited, Mr. Godwin Oboh described financial results as quite impressive, saying, "it is a clear affirmation of CDL's resolve to remain the market leader in the sub-sector."
"In a year when diminishing margins and returns characterized the industry, these are indeed excellent results which are highly commendable," he added.
He acknowledged that the Central Bank of Nigeria directive of July 6th, 2004 to the effect that banks increase their paid-up capital to N25 billion before end December 2005 shocked the nation's financial landscape.
The CDL boss however noted that the directive "will bring about the emergence of strong virile banks that will strengthen public confidence while invigorating the capacity and capabilities of banks to assist in a sustainable development of the country."
While maintaining that the effects of the directives have started to manifest in the flight to safety of deposits and the near grinding to a halt of the inter-bank market, CDL, he stressed, would emerge stronger at the end of the challenges facing the industry.
"CDL has taken bold strategic initiatives to ensure its survival and relevance while maintaining its record of default free operations," he assured.
Incorporated as a private Limited Liability Company on November 16, 1995, Consolidated Discounts was licensed by the CBN on August 14,1996.
Currently. its ownership structure spans across nine financial institutions including Union Bank of Nigeria Plc, Afribank Nigeria Plc, Eko International Bank Plc, Universal Trust Bank Plc, Co-operative Development Bank Plc, MBC International Bank Limited, Triumph Merchant Bank Plc, Marina International Bank Limited and Williams Street Trustees Limited.
|
