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SCB maintains dividend despite low profit in 2017 |16 August 2018

 The shareholders’ meeting

The Seychelles Commercial Bank (SCB) has maintained the 10% share dividend, the same as last year, despite recording a low profit of R19.14 million for the year 2017 compared to R20.664 million made in 2016.

This announcement was made by the SCB chairman, Patrick Payet, while delivering the bank’s performance report at the 7th annual general meeting of the shareholders on Tuesday morning at the Seychelles Trading Company (STC) conference room, Latanier Road.

According to the financial report for 2017, the bank made a profit of R19.14 million (19,138,882) before tax deduction and a net profit of R13.33 million (13,334,379) after tax for the financial year ending December 31, 2017.

The profits before and after tax deduction represent a decline of 14.8% and 35% respectively. The bank made a record profit of R23.32 million before tax and net profit of R20.664 million after tax in the financial year ending December 31, 2016.

But despite the low profit for last year, the board of directors recommended that a dividend of R6 million (same as in 2016) be paid to shareholders on October 17. Shareholders will get R10 per share, representing a 10% return on their investments in the bank.

According to chairman Payet, who is also the secretary of state for finance, the bank’s low performance in accumulating revenue was due to challenges it faced in the light of a very high operating cost, staff constraints in key revenue-generating areas and the necessity for further downward adjustment of the lending rate in order to remain competitive in the market.

Despite the low performance, SCB did perform well in certain areas, although in some instances not as anticipated. The bank’s deposits grew from R1.03 billion in 2016 to R1.28 billion as of December 31, 2017, registering a growth of 24%. The credit portfolio of SCB has also gone up and at the close of 2017, the asset value stood at R633.8million (a 22% increase) in comparison to R599.3 million in 2016.

The foreign exchange gains also increased last year to R103.19 million from R101.59 million in 2016. Though not to expectation, the loans and advancements grew by 5% while specific provisions on non-performing loans continued to improve as provisioning dropped by 5% to an amount of R4.27 million compared to R4.08 million in 2016.

Apart from discussing financial details the quorum were enlightened through presentations on the different projects being undertaken and on the bank’s scrutinisation of incoming members. Projects include the introduction of new ATM machines, point of sales machines, on a new international debit card, on-line banking, plan for the bank’s own building, the building of a new branch at Providence, credit facilities, among others.

As for the shareholders, they raised concerns on loan applications, use of the debit card, customer services, among other issues.

The bank also embarked on several projects last year such as the launch of the Seychelles Electronic Fund Transfer (SEFT) phase 2 so as to be on par level with other banks and has introduced a new ATM machine at Kumar & Kumar supermarket at Pointe au Sel.

During the meeting, Sandy Mothée and Jenna Thelemontretire, were re-elected as directors of the company. Apart from Mr Payet, other board members present were directors Jamshed Pardiwalla, Esther Boniface and the bank’s chief executive Annie Vidot. Absent was director Robert Morgan. 

Before the start of the AGM, the quorum, which also included representatives from the Central Bank of Seychelles, paid a one-minute silence for the departed shareholders.

 

 

 

 

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