Shareholders of First City Monument Bank (FCMB) Plc, have approved total dividend of N8.1 billion for the financial year ended April 30, 2008 .

The dividend which translates to N0.50 kobo to every 50kobo share held by investors, would be paid to all shareholders whose names appear on the bank's register as at September this year.

Shareholders commended the management of the bank for its performance but stated that it would have been better for the Board of Directors to approve bonus than dividend since the bank made huge profit at the end of the financial year.

They also expressed the need for the board to state categorically the amount contributed by the bank's subsidiaries to the over all profit recorded by the institution to enable them access the rate of their performances.

Addressing shareholders at the 25th Annual General Meeting in Lagos yesterday, the Chairman of the bank, Jonathan Young, said that despite the challenges in the industry, the bank maintained impressive growth during the last financial year.

He said that gross earnings which stood at N24.97 billion in the preceding year rose substantially to N52.82 billion within the period under review, indicating a growth rate of 112 per cent.

He stated that in spite of the high cost of meeting the challenges imposed by the infrastructural inadequacies, profit before tax went up from N7.56 billion in the preceding year to N20.517 billion at the end of April this year, while profit after tax increased significantly by 154 per cent from N 5.95 billion recorded in a comparative period of 2007 to N 15.1 billion

Young further stated that the bank's total deposit increased by 34 per cent, from N200 billion recorded in the corresponding period of 2007 to N251.22 billion while total assets plus contingents surged from N500 billion in the previous year to N587.38 billion, representing a growth rate of 90 per cent.

He further pointed out that in line with the management commitment to enhancing shareholders value , the bank would continue to pursue new business openings in the coming financial years as part of measures to offer possibilities of generating sustainable long-term growth for the bank.

Managing Director of the bank, Ladi Balogun further said that consumer banking which would represent over 25 per cent of the bank's net income in the next five years and attains breakdown volume at the end of this year, has not yet contributed positively to the income statement, due to cumulative investment in excess of N20 billion in the 24 months.

He said that transaction banking, a stable business for the bank is in the process of transformation with over N500 million in technology investments to be made in 2008.