Finbank Plc has announced its financial performance in the half year ended June 30, 2010 with a record improvement in profit after tax of N2.3 billion, and N2.2 billion recorded in the half-year result for 2009.
The June 2010 financials of the bank, which was made available to The Guardian, indicates gross earnings of N22.05 billion and a rise in deposit base to N220.20 billion, a 12.01 per cent growth when compared with the N196.43 billion deposit base in December 2009.
FinBank’s records, which is the second quarterly results to be published since the CBN intervention and institution of the turnaround managers in August 2009 appears to have settled on the path of stable profitability as it significantly reduced its operating expenses to N10.89 billion in June 2010, indicating a 32.78 per cent decrease against the N14.46 billion expended in the corresponding period of 2009.
Total assets of the bank also increased to N195.76 billion in the financial period under review, reflecting a 24.02 per cent rise over the December 2009 level of N157.84 billion.The current financial performance of the bank is accentuated further on account of the bank’s adequate provision for a N152 billion non-performing loans and advances in the last financial year.
According to the statement, the provisioning was done as part of the bank’s determination to comply with the CBN policy that banks should make full disclosure of their risk assets and provide adequately for them.It added that, FinBank have also fully adopted the Modified International Financial Reporting system, which the CBN urged all banks operating in Nigeria to adopt, with effect from December 2009.
FinBank’s outstanding financial result has clearly distinguished it as the first among its peers of affected banks to post positive results, placing it among the league of stable banks in the country.An inside source, who pleaded anonymity, revealed that some of the turnaround strategies that have led to the sharp recovery and profitability of the bank include the new executive management’s insistence on high standards and practices, as well as, a renewed culture of providing efficient and reliable banking services to the teeming customers of the bank.
He further revealed that the executive management sent by the CBN has insisted on transparent reporting and timeliness of reporting which has improved the bank’s operation and positioned it on a path of sustainable growth and profitability.Meanwhile, market analysts are of the view that FinBank’s half year result, which places it among the profit making banks in the country will be enhanced after the recapitalisation exercise, adding that it can only get better in view of the bank’s enhanced fundamentals.
According to them, the result clearly explains why the bank continues to be the toast of both international and local investors, who are determined to participate in the bank’s quest to increase capital.On the other hand, the management of the bank has expressed its commitment to continue to maintain the performance by further intensifying efforts in the areas of cost containment, enterprise risk management, corporate governance and process improvement.
It will be recalled that the CBN’s mandate to the new executive management of the banks it intervened in last year, was to steer them to profitability through aggressive debt recovery, strengthening of corporate governance principles and enterprise risk management among others. FinBank’s management has proved their commitment to uphold these initiatives and execute the mandate as the figures clearly show, despite the challenging operating environment.