By Peter Egwuatu
Management of Spring Bank Plc has declared a Profit Before Tax (PBT) of N2.35 billion in its 2010 half year operations.
It is the second consecutive quarter that the bank will be posting a profit since its inception in 2006; having recorded a PBT of N636.0 million in its 2010 first quarter result.

According to the unaudited 2010 half-year results released at the floor of the Nigerian Stock Exchange (NSE), weekend the N2.35billion PBT represents a significant improvement when compared with the loss position of N4.21billion recorded during the same period in 2009. It is also an impressive improvement of about 370 per cent performance over the PBT of N636.0m, which the bank reported in the first quarter of this year.

Other significant result of the half-year performance showed that the Profit After Tax (PAT) stood at N2.31 billion by June 30, 2010 as opposed to the N4.25billion loss posted during the same period last year. Total assets increased by 38 per cent from N146.31 billion in December 2009 to N201.3 million while deposits grew by 43 per cent from N142.7 billion in December, 2009 to N204.7 billion in this half-year.

Reacting to the development, the Group Managing Director/Chief Executive Officer of the bank, Mrs. Sola Ayodele, described the performance so far as modest and ascribed it to the implementation of consistent strategic initiatives adopted by the bank, which has led to reduction in operational expenditure, optimal transaction cost management coupled with good corporate governance, service excellence, effective liquidity management and the stimulus package of N50billion injected by the Central Bank of Nigeria (CBN).

The GMD stated that a lot of hardwork was still required to consolidate on the recent gains, particularly in the areas of loan recovery and recapitalization of the bank. She stated that several initiatives have been taken on the recapitalization exercises, which are expected to yield fruit soon.

The Ayodele-led administration took over the management of the bank following the Central Bank of Nigeria (CBN) intervention in the banking industry in October last year.