Posted by By PETRUS OBI, Enugu on
Afribank Nigerian Plc has confirmed its leadership and market rating as a fast growing bank as it reported N17.22 billion Profit Before Tax (PBT) for the half year ended September 30, 2008.
•Posts N17.22bn in 6 months
Afribank Nigerian Plc has confirmed its leadership and market rating as a fast growing bank as it reported N17.22 billion Profit Before Tax (PBT) for the half year ended September 30, 2008. The figure, which has surpassed the last year's financial 12-month result, marks a 113 per cent increase from the N8.1 billion recorded in the corresponding period last year.
This confirms the ability of the bank's management to sustain its success streak of growing its fundamentals above industry rate.
The aggressive change initiatives, market deepening and business expansion of the bank also resulted in the growth of its half-year gross earning from N19.48 billion in September 30, 2007 to N43.43 billion this year, an increase of 123 per cent Profit After Tax rose by 121 per cent from N5.51 billion in September 2007 to N12.16 billion in September 2008. shareholders' funds increased phenomenally from N32.53 billion to N140.57 billion a record of 332 per cent leap.
Market analysts believe that with the good scorecard in the half-year, Afribank has set the tone for a robust financial year end in March 2009. The analysts hailed the management of the bank for recording remarkable growth in its 2007/2008 financial year, adding that the bank's sustenance of its top performance momentum will continue to boost its market acceptance and perception.
In terms of growth, market niche, spread, business focus, risk management structures, IT platform and human capital deployment, Afribank manifests strong fundamentals, robust prospects and a bright future.
When the bank published its audited financial statements for the accounting year ended March 31, 2008, pundits had predicted that Afribank was the financial institution to watch for several reasons, amongst which are:
•A return on equity of 38 per cent, the highest amongst its industry peers
•An equity capital base that has been shored up by 332 per cent
•A comprehensive transformation programme kick-started 24 months ago by the present management with change projects on-going in several spheres of the bank's operations that is now beginning to manifest in the bank's performance.
•A strong legacy dating back to 1969
To market operators, the announced unaudited results may not have come as a surprise having regard to the forgoing and the fact that in just under a decade ago Afribank ranked among the top four elite banks in Nigeria and has made no pretence about its desire to regain its rightful position in the comity of Nigerian banks. In order to consolidate on its growth drive, the bank has made huge investments in its infrastructures upgrade and made strategic appointments of highly experienced and skilled personnel who now occupy executive and top management positions within the bank to champion delivery of the bank's new vision.
It is remarkable that the bank's share price on the Stock Exchange has been one of the isolated cases that have remained stable in spite of the persistent bearish trend in the capital market, ostensibly a reflection of the market's confidence in the bank.
The icing on the cake, it would appear, is that the bank is set to more than double its return to shareholders by way of dividends this financial year ending March 31, 2009, far in excess of the N0.50k dividend per share and the bonus of one for every three shares declared in the last year end. With the current rate of performance, one would imagine that Afribank's shareholders are waiting with baited breath, expectant of the largesse that is certain, come next year.