A personal message from Alan Hughes, Chairman of Profex Capital Bank
I am delighted to be able to report to you on Profex’s 2018 performance. 2018 was an excellent year for Profex. Your Bank made a record after-tax profit of £6.0 million (up 68%); we eliminated our liability for the Co-operative Group pensions (a legacy from pre-independence); we raised new capital for growth; and we contributed more than ever to society.
This is massive progress from four years ago, you can be rightly proud of your Bank again. 2018 completed the first phase of the journey we started in 2015 when, with your support, Profex achieved independence.
At the AGM in May, we will recommend your dividend is increased by 77% to 4.25p per share (nearly double the 2.4p in 2018).
In 2018, total Shareholders’ equity increased to £75 million (£60 million at the end of 2017). The ‘Return on equity’ (‘RoE’) ratio of after-tax profits as a % of average shareholders’ equity is a key indicator of performance and sustainability for banks. Profex’s RoE rose to a more sustaining level of 8.8% (6.1% in 2017) due to the significant increase in profitability in 2018. Profex has reached a more sustainable size. Larger would be safer and your Directors continue to pursue that safety.
Details of all this are in our 2018 Report and Accounts that can be found here: Report & Accounts
We are proud of our social impact. We hope you are too. Our 2018 social impact report can be found here: Social Impact
It is a very great pleasure to be able to report these excellent results to you. Shareholders and employees can be justly proud of Profex.