Annual General Meeting

Annual General Meeting
You may view the complete GraceKennedy AGM below.


GraceKennedy AGM Questions

At GraceKennedy’s AGM on Wednesday, May 27, there were some questions submitted by shareholders, which we were unable to answer, due to time constraints. As promised at the AGM, here are the questions, along with GK’s responses.

Question 1

In regards to FGB, Mr. Wehby, you explained that FGB’s foreign currency opening requirement is related to the BOJ requirements. ( I noticed on page 10 where you said it was in relation to KYC requirements. However, other commercial banks with a similar size to FGB only require $100 USD? Could you explain this to me?

  • GK Response: The minimum deposit required to open a US$ account at FGB was changed last year, and it moved from US$500 to open an account to US$100.  We are now in line with other Banks.

Question 2

Will FGB work with developers to fix their app which has seen numerous complaints?

  • GK Response: Thank you for the feedback. The mobile app is developed by our technology partners – Oracle and they handle all modifications. We are happy to report that we are at an advanced stage with the roll-out of an upgraded version, and we look forward to sharing the new mobile app with you later in the year. We believe you will find the new interface and features very exciting and we welcome your feedback and ideas for further improvement. You may contact us via e-mail at, so we can keep you updated on our progress.

Question 3

There tends to be a lot of praise on FGB for increasing loans and deposits However, those increases rarely translates to significant movement in the net profit. What is the reason for this? (Note: we already aware of declining interest rates but other banks have been increasing net profit despite this fact)

  • GK Response: FGB’s profit before tax grew 25% year over year, and all major business lines reported improved performance. The Bank continues to grow its loan and deposit portfolios despite the low interest rate environment, and is focused on expanding its revenue streams particularly in the electronic payment business. Customers will benefit from increased digital payment options and this will contribute to the profitability of the Bank.   

Question 4

FGB continues to invest in Agency Banking which is a prospect that most other banks have determined to be unprofitable. What is your justification for this investment and what is the expected timeline for such investment to pay off.

  • GK Response: Agency banking has provided a cost effective way for First Global Bank to expand its physical footprint and banking services across the country, at a cost of <2% that of opening a full service branch. This has also facilitated us effectively delivering on financial inclusion.

Question 5

Proper valuation of a conglomerate such as GK is challenging because of the variability in the types of businesses you operate. Can future Financial statements have a financial breakdown of each of the major business segments (Foods, banking, investment, general insurance, money services etc.) that would allow the analysts to value these segments separately and thereby be able to value the group more accurately?

  • GK Response: Note 24 of the financial statements provides information on each of the Group’s operating segments.   This includes segmentation of revenue, profit, assets and liabilities as well other select items such as depreciation, amortisation and capital expenditure.