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Oceanic Bank returns to profitability, posts N2.66bn Q1 profit

BY PETER EGWUATU

Oceanic Bank International Plc has returned to profitability , as its Profit After Tax (PAT) grew by 136 per cent to N2. 660 billion, in its unaudited first quarter ended March 31, 2011 results, from N1.124 billion recorded in the corresponding period of 2010.

According to the result released to the Nigerian Stock Exchange (NSE) , the Bank posted a gross earnings of N28.2 billion, which represents a marginal growth of 1.5 per cent from N28.7 billion recorded in 2010.

The Profit Before Taxation (PBT) of the Bank for the first quarter 2011 stood at N3.365 billion, representing an increase of 94.5 per cent from N1.73 billion recorded in 2010.

Total assets for the Bank in the first quarter 2011 stood at N945.892 billion, representing a marginal growth of 1.7 per cent over N929.895 billion recorded in 2010. The total liabilities stood at N1.045trillion as against N1.032 billion in 2010.

Meanwhile, the first quarter 2011 profit coming after the loss of N89billion posted in 2009, effectively signals the bank’s return to profitability after the CBN intervention in August 2009.

The Bank’s operating expenses went down marginally by 0.12 per cent for the first quarter ended March 2011 to N16.261 billion from N16.241 billion in 2010. The Bank’s Earning Per Share (EPS) increased to 12 kobo from 5 kobo in 2010. Total non performing loans to total loans and advances dropped to 12 per cent in the first quarter 2011 from 70 per cent in the previous quarter of 2010.

It will be recalled that the bank’s balance sheet witnessed total assets from N869.3 billion at December 31, 2009 to N890.1 billion at the end of first quarter 2010. There was a nine per cent growth in customer deposits in the first quarter of 2010 bringing it to N595.3 billion while Earnings Per Share for the quarter stood at five kobo as against a Loss Per Share of 56 kobo in the first quarter of 2009.

John Aboh, Group Managing Director/Chief Executive Officer, noted that the results are indicative of growing customer confidence, loyalty, and a vindication of the effectiveness of the recovery strategy put in place by the new management to reposition the bank. “After overcoming the initial challenges of stabilising the bank and restoring customer confidence, we launched a recovery plan that focused on good corporate governance, low_cost liability generation, cost optmisation, and improved risk management. The plan is yielding the desired results and the bank is looking ahead to a brighter future,” he said.

Aboh explained that from a pre_intervention level of N528 billion, as at August 14, 2009, the bank’s deposits dropped initially to N490 billion by October 2009, and then grew by 21.5 per cent to N595 billion as at March 31, 2010. He added that the bank’s cost optimisation initiatives have effectively streamlined its expense profile, paving the way for sustained value creation and profitability.


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