Safetrust Savings & Loans Limited has indicated plans to increase its shareholders’ fund to N2.5bn.
The company said in a statement on Monday, that the plans to boost its fund base was in line with the directive of the Central Bank of Nigeria.
The CBN had given a recent directive that all Primary Mortgage Institutions must recapitalise to N2.5bn for state operating licences or N5bn for the national operating licence.
The statement quoted the Executive Director, Safetrust, Mr. Akintayo Oloko, as saying that the funds would be raised by way of rights issue.
He said, “We will be raising the funds by way of rights issue, as we will be offering one unit of additional shares to two units of existing shareholdings. This issue of additional 550,000,000 share units at N1.00 per share will enable Safetrust to increase its current shareholders’ fund from N2.016bn to N2.566bn. The opening date is July 1, 2013 and closes on July 31, 2013.”
The company recently declared a profit after tax of N404m for the year ended December 31, 2012.
This represented an increase of 244.17 per cent compared to N117m recorded at the end of 2011.
The statement quoted the Managing Director, Mr. Yinka Adeola, as saying that there was a vast increase in terms of the earnings per share as it rose from 11kobo in 2011 to 38 kobo in 2012.
The bank’s 2012 year-end financial statement also witnessed an increase in its transfers to general reserve by 44.70 per cent from N179m in 2011 to N260m in 2012.
Its shareholders’ fund also increased by 19 per cent from N1.6m in 2011 to N2.01m in 2012.
Safetrust, which was incorporated in 1993, is managed by a nine-man board of directors with Mr. Akin Opeodu as chairman.