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Oceanic Bank consolidates performance, PBT hits N28.8 bn

BY PETER EGWUATU

Oceanic Bank International Plc has consolidated its performance, recording a Profit Before Tax (PBT) of N28.863 billion for the financial year ended December 31, 2010, as against a loss of N117.865 billion recorded in the corresponding period of 2009.

The Bank’s Profit After Tax (PAT) rose to N25.426 billion from a loss of N90.652 billion in the year 2009. Its operating income for the year 2010 was N54,131 billion as against N115.105 billion in the previous year.

The Bank’s operating expenses dropped from N94.689 billion in 2009 to N64.516 billion in 2010.

Write back diminution in asset values was N39.248 billion in 2010 as against a loss of N138.281 billion recorded previous year .

However, Oceanic Bank gross earnings for the period under review dropped to N106.434 billion in 2010 as against N190.8 billion recorded in the corresponding period of 2009.

The Group’s gross earnings stood N110.5 billion for the financial year ended December 31, 2010 , representing a decline by 44 per cent from N196.4 billion recorded in the year 2009.

In the first quarter unaudited result ended March 31, 2011 released recently, Oceanic Bank recorded a gross earnings of N28.271 billion as against N28,710 billion in 2010.

Interest income stood at N20,807 billion as against N24,578 billion in 2010.Operating income increased from N10.590 billion to N15,468 billion.

The PBT for the first quarter went up to 3,365 billion from N1,730 billion; PAT also increased to N2,660 billion from N1.124 billion.

The total non-performing loans to total loans and advances reduced from 69 per cent in the previous quarter of 2010 to 16 per cent in 2011.

It will be recalled that the Bank returned to profitability last year when at the end of its third quarter, the Group wrote back N14.8billion , while cumulative recoveries on September 30 Year-To-Date (YTD) was N111.4billion.

In the 9-month period for the year 2010, the Bank’s deposit book grew by 15 per cent to close at N626 billion, primarily due to sustained customer loyalty, the resilience of the Oceanic Brand, excellent customer service and the effectiveness of its 375-branch network.

During the period, Fitch Ratings upgraded the Bank’s individual rating from “F” to “E”.

In the 3rd quarter, Oceanic Bank held its first interactive session with shareholders to appraise them of milestones achieved in its turnaround program and options being explored by its Board to recapitalize the institution. Shareholders voiced their support for the Bank’s demonstration of transparency and responsibility, and engaged the Bank’s Board and Management in a frank exchange of ideas over its future.

Commenting on the results, John Aboh, Chief Executive Officer said: Our turnaround program continues to yield good results; we are keeping operating costs in check, pursuing NPL recoveries aggressively and focusing on risk management. If you look at the underlying business of Oceanic Bank, what you find is a solid institution with a resilient brand, committed workforce and loyal customers. This is our winning formula.”

Sharing her outlook for the 4th quarter, as well, Oyinkan Adewale, Executive Director/Chief Financial Officer said : “following the recent court ruling, we look forward to receiving a major boost to the Bank’s liquidity from Asset Management Company of Nigeria (AMCON). With the resolution of insider-related NPLs, we expect a massive improvement in the Bank’s NPL ratio from 69 per cent (end Quarter three ) to about 50 per cent and we look forward to deploying the proceeds to optimise our cost of funds.”


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