SPRING BANK RECORDS N636 MILLION PROFIT-BEFORE-TAX; BECOMES AN ATTRACTIVE BRIDE FOR INVESTORS
Released on 22 Jul 2010
SPRING BANK RECORDS N636 MILLION PROFIT-BEFORE-TAX; BECOMES AN ATTRACTIVE BRIDE FOR INVESTORS
For the first time in its history Spring Bank Plc, one of the eight banks rescued by the Central Bank of Nigeria (CBN) late last year, has recorded a profit in its quarterly operation, leading to increased interests by local and international investors.
According to the unaudited first quarter results released at the floor of the Nigerian Stock Exchange yesterday, the bank posted a profit-before-tax (PBT) of N636.0 million, a significant improvement when compared with the loss position of N1.73 billion for the corresponding first quarter results of 2009.
While fielding questions in an interview on Channels Television during the last Easter Holiday break in Lagos, the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi had disclosed that Spring Bank Plc was one of the four rescued banks that posted a profit in February 2009.
Other gladdening results emerging from the Quarter One (Q1) results of the bank include a profit-after-tax (PAT) of N613m which is an increase over the 2009 first quarter loss of N1.75billion; deposits grew from N142billion in December 2009 by 11.6 percent to 158billion in March 2010 while the balance sheet size grew by 4.1 per cent from N146billion to N152.3billion. The profit-before-tax of N636.0million is also a significant improvement when compared with the loss position of N28.7billion in the audited accounts of the year ended December 2009.
Following the positive turn of events in the bank, characterized by a sharpened business focus and a more cost efficient operation, Spring Bank is currently considering investment offers from foreign and local investors towards the recapitalization of the bank.
In a meeting with representatives of shareholders of the bank recently, the Group Managing Director/Chief Executive Officer (GMD/CEO), Mrs. Sola Ayodele, stated that the monthly profit which began in February this year will be sustained and improved upon. She called for their unflinching support in the recapitalization efforts of her administration so as to build a sound and profitable bank that will deliver a rewarding and lasting shareholder expectation.
She said that the return to the path of profitability has been made possible by a number of strategic initiatives which focused on effective liquidity management, loan recovery, operational efficiency and corporate governance in addition to the intervention funds from the apex bank.
She posited that the bank has been able to reduce its operating expenses from a monthly average of N1.3 billion to N1.1 billion thus saving about N1.2 billion in expenses since the CBN intervention in October 2009 while deposits have also increased from N132 billion in October 2009 to N158 billion in March 2010.
Additionally, the GMD/CEO concluded that the bank has been able to achieve a significant improvement in income during the period, while increasing liquidity ratio to about 50%, thereby, doubling the required regulatory minimum of 25%.
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.
