Afribank Grows Profit By 129 %, Declares Bonus, Dividend
Category: Corporate Earnings
The strategic growth initiatives of Afribank Nigeria Plc have yielded positive results as the Bank recorded Profit Before Taxation of N9.13 billion for the financial year ended 31st March, 2007, up by 129.3% from N3.98billion recorded the previous year.
Shareholders of the Bank also have cheering news. The Bank has signified its intention to give out a bonus of 1 (one) for 5 (five) ordinary shares of the Bank held and a cash dividend of 30 kobo per share.
Improved customer activity and increase in large volume transactions over the year are reflected by the growth in Gross Earnings to N27.54billion as against N15.64billion in the previous year, showing an increase of 76.11%.
The growth is further reflected by the BankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s deposit liabilities which increased by 53.3% from N88.4 billion to N135.64 billion. Total Assets of the Bank also grew by 35.52% to N187.08billion from N138.05billion in the previous year while Earnings Per Share (EPS) of the Bank witnessed 80% growth within the same period.
The new level of performance of the Bank has placed it among the league of top banks in Nigeria today with strong fundamentals, robust prospects and brighter future. Analysts believe that with the new management, the current upturn in performance of the Bank will be sustained. They predict that the BankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s strategic turnaround will fuel year on year increase in earnings.
The BankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s quantum leap in PBT in the 2007 financial year is a clear indication that the transformation initiative being undertaken by the bank is yielding results. At the core of this transformation is a drive by the new management, to improve its level of efficiency, create a sound asset mix, create a professional environment with strong corporate values and compete aggressively for business in the financial market place.
The share price of Afribank had hitherto been on technical suspension. In the meantime, value was being created in the Bank. Once the suspension was lifted, the market unleashed its pent-up enthusiasm for the BankÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢s shares staking billions of naira on its upside value potential. Its share price has consistently moved from N11.51 3 weeks ago to close at N26.25 last week.
Industry watchers believe that with the level of public confidence, market appreciation and the organic growth taking place in Afribank, it would soon be among the top banks in the industry.
Afribank is on the path of market dominance and sustainable growth with capability to convert local and global challenges into opportunities. The Bank has continued to initiate market-focused strategies that are facilitating recovery of lost market share, offering differentiation advantages, competitive pricing and leveraging on its e-banking platform to offer diverse customer friendly products and services.
Afribank is also succeeding in partnering governmentsÃƒÆ’Ã†â€™Ãƒâ€šÃ‚Â¢ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¡Ãƒâ€šÃ‚Â¬ÃƒÆ’Ã‚Â¢ÃƒÂ¢Ã¢â€šÂ¬Ã…Â¾Ãƒâ€šÃ‚Â¢ institutions and parastatals by offering tailor-made solutions to help them realise their mandates and the personal aspirations of their staff.