Hot SourceVanessa Obioha
At its eighth annual general meeting (AGM), Credite Capital Finance and Investment Ltd announced a N50 million dividend payout to shareholders, an increase from N40 million in 2023. Managing Director Segun Ogunleye also disclosed plans for a N40 million bonus scrip, to be allotted at a ratio of one share for every 13 held.
“So we are looking at a bonus scrip of N40 million to be shared at a ratio of one to 13,” Ogunleye explained. “That is to say, on every 13 units of shares held, one unit will be granted and allotted, as against what was done last year.”
Chairman Adetokunbo Abudu said the move aims to position the company for a possible review of its share capital base. “We are doing the bonus scrip to position the company for possible review of the share capital base for a finance company,” he noted.
The AGM offered shareholders an opportunity to review the company’s performance over the past year. According to Abudu, global and domestic developments significantly shaped the operating environment. “On the global front, heightened geopolitical uncertainties, the rapid acceleration of digital transformation, particularly the integration of artificial intelligence into everyday life, and the focus on sustainability dominated the global agenda,” he said. “Domestically, the macroeconomic environment experienced significant shifts, marked by rising inflation, foreign exchange reforms, monetary policy tightening, and renewed efforts toward fiscal consolidation.”
Despite these headwinds, he said, Credite Capital delivered a resilient performance, underpinned by its diversified business model, scalable infrastructure, prudent risk management, and deepened investments. “It’s been a tough operating environment, and the company has managed to survive that environment and do well to deliver value to our shareholders. We hope the sort of business model we’ve developed will sustain us through this and many more years. Our focus is on improving our risk asset quality, deepening our deposits, and driving value.”
Financially, the company recorded a 56.1% increase in gross revenue to N2.04 billion in 2024 from N1.31 billion in 2023. This was driven by a 70% growth in interest income from N976.5 million in 2023 to N1.66 billion in 2024, and a 15% rise in non-interest income to N380.3 million from N332 million. Net interest income surged 91.4% to N469.4 million, while operating expenses rose 49% year-on-year to N662.4 million, reflecting higher personnel costs, technology expenses, and inflationary pressures.
The cost-to-income ratio inched up to 93% from 92% the previous year. Deposit liabilities increased 19% to N5.69 billion, while risk assets grew 40% to N4.64 billion. Profit before tax climbed 32.7% to N141.1 million, and profit after tax rose 32.2% to N109.6 million. Total assets expanded by 21.8% to N6.8 billion, and shareholders’ equity increased 14.9% to N536.2 million.
Looking ahead, Abudu revealed that the company plans to broaden its branch network across Nigeria’s western, southern, and eastern regions. “This expansion will enable us to serve more customers, deepen market penetration, and strengthen our presence across key regions,” he said. Credite Capital will also invest in advanced digital technologies to enhance operational security, accessibility, and efficiency, and aims to raise its share capital to N1 billion by 2026.
On the wider economic outlook, Ogunleye commended President Bola Tinubu’s policies. “Yes, I must say the present administration is doing everything humanly possible to address all the microeconomic headwinds presently. Now, the GDP is growing. We have relative stability in our FX. The naira is gaining stability. The government is working assiduously with fiscal policy to address the inflation pressure. So I see the economy coming up, and everything still boils down to the SMEs, which are the lead catalyst, and that’s why we are there to support the SMEs—to grow their business and create wealth.”
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