The Seychelles Commercial Bank (SCB) held its annual general meeting on Thursday, where it reported remarkable and milestone achievements in 2016. In a report distributed during the AGM, the bank realised a record net operating profit of R23.32 million and net profit of R20.664 million in the financial year ending December 31, 2016, representing a 30% increase over the operating profit of R17.91 million and 72% increase over the net profit of R12.04 million reported in 2015.
The bank moreover recorded solid growth in its overall balance sheet size as well as in customer deposits, both of which crossed the one billion mark in 2016 to reach R1.19 billion and R1.03 billion respectively, compared to R981 million and R831 million in 2015.
As a result the AGM, the board of directors has recommended a dividend of R6.0 million (compared to R4.8 million paid in 2015), be paid to shareholders by today. The dividend of R10 per share represents a return of 10% on the shareholders’ investment in the bank; a rate SCB describes much higher than the current returns placed in bank deposit.
Since the change of name and re-branding of the bank in 2013, SCB has been operating as a fully-fledged commercial bank, offering a variety of banking activities to the individual and the business segments. These include savings accounts, current accounts, foreign exchange operations, personal loans and mortgages, and a variety of credit facilities to small, medium and large businesses, including term loans and overdrafts.
Regarding shares in SCB, the Government of Seychelles remains the single largest shareholder with 60% of shares. In 2016, the bank concluded the second round 16.55% of government’s shares being sold to deposit account holders. This resulted in Government’s shares being reduced from 76.55% to 60%.
Over the preceding years, SCB has embarked on a series of ambitious projects, a number of which have already been realised such as core banking platform, SMS Alerts & Utility Bill Payments at ATMs whereas recent projects are at different stages of implementation such as online banking, POS machines and international debit cards which are expected to be launched before year end.
SCB has the vision of becoming one of the leading banks in Seychelles!
Patrick Payet, chairperson of the SCB Board, said it is important for them as a bank to introduce new facilities and products.
“If you want to attract new clients, you have to have more products or more facilities to offer them. So definitely if they see they are being provided such services with other banks, even if you can offer new services but do not have new products, they will not necessarily come to you. So it is our role to work with management to make sure these new products are available on the market as soon as possible to enable the bank to attract more clients. I believe the current team at the bank has the capability of doing it,” said Mr Payet.
On the prevailing interest rates in commercial banks, Mr Payet said the board was working with management to review the existing percentages on interest rates, deposits and loans.
“We want to make sure we help the economy grow. As a bank we want clients to come to us but at the same time we want the country to develop, the economy to grow. So definitely we want to see an affordable rate of interest for businesses and people in productive sector,” he explained. Productive sector, Mr Payet said, means targeting people who are working in construction which is developing the economy. This, he said, is what the bank is working on and will be ready in the next two to three weeks, to coincide with the Central Bank of Seychelles’ announcement on new decisions regarding interest rates.
With regard to the 60% shares owned by the Government of Seychelles in SCB where Mr Payet was asked if the government has any intention of selling them, he said for the time being no decision has been taken.
“It was at 100% before but we completed the sale of 40%. This was our objective. We have not yet done a proper evaluation on whether we will offer the public additional shares or whether the government will look for a strategic partner. These are analysis we have to do to bring SCB to a new level. But in the meantime what the government has done is we detected possible opportunities in other public enterprises, which are being worked on, he said.
“For example actually we are working with Nouvobanq, with Standard Chartered Bank so they can come onboard as they also have 22 per cent shares in SCB, to make them aware of the ongoing procedures. Hopefully by September or October we will have finalised things and will be able to make a public announcement on what has been decided upon,” Mr Payet explained.
He also announced the government’s intention of bringing here international shareholders of the Development Bank of Seychelles and a final decision will be let known to the public by September.
Regarding stock exchange, Mr Payet said discussions have started with Trop-X on sale of shares by shareholders who wish to do so. He said the discussions were based on the exact procedure public enterprises should follow if they want to go on the stock market.
“Definitely this is an option that has not been left out but will be analysed. For example a person can invest for five years, then sell with another person, is also another option that we can advise the public on its availability where they can pursue,” he said.
On the intended new building for the Seychelles Commercial Bank, Mr Payet said they are meeting the government to see what options exist.
“For example one option is a public enterprise which has expressed the wish to join with SCB. Secondly is that we get our own piece of land to construct the building. These are the two options being analysed together with the government to see which is best in the interest of the bank,” he said.