There are strong indications that barring any last hitch, Intercontinental Bank Plc, one of the CBN rescued banks in the country is set to present its results for the usual financial year end to February 2009 and the common year end for the period ended 31st December, 2009.


Also to be presented alongside the two outstanding audited results is the first quarter results for the period ended 31st March, 2010.


It would be recalled that Intercontinental Bank Plc was one of the first five rescued banks by the CBN whose Management was removed on the 14th August, 2009 for allegation of pushing the bank into grave conditions, caused by jettisoning sound corporate governance and non adherence to tenets of sound risk management.


The new management headed by Mr. Lai Alabi was charged with the responsibility of piloting the affairs of the bank from crisis to stability, and eventually to profitability after CBN had injected N100 billion.


The results for the six months period (March-September 2009) presented after the CBN/NDIC joint audit exercise by the Management of the bank confirmed the grave condition of the bank with whopping sum of N436.686 billion loan loss provisions which consequently resulted in loss before and after tax of N447.451 billion and N328.450 billion respectively. But for the N119.001 billion tax credit giving to the bank, loss after tax would have closed higher. Net assets for the period also closed in the negative of N258.694 billion.


The results to be presented will serve as a gauge for how far the new management has been able to truly rescue the bank and how much they have achieved in stabilising the bank. Though not much is expected from the December 2009 common year end result of the bank, evidence/indications for improvement should be seen in the first quarter results for the period ended 31st March, 2010.


Critical areas of emphasis in the expected improvement can be in the following figures:

i. Gross earnings trend-upward or downward
ii. Profitability outlook-improved, static or downward
iii. The quality of loan portfolio-the state of non-performing loans
iv. Provisions for loan loss trend
v. Loans recovery success to date
vi. The liquidity status of the bank
vii. Assets quality and growth
viii. Deposit trends
ix. The state of the bank’s shareholders’ fund.
x. Cost and income relationships
 

The matrices above should tell to a very large extent how far the bank has come out of its holes.


The investing public is more than anxious to see the results of the bank for the periods stated released. It is certain that reactions/response will follow in the share price of the bank which has gone for as low as N1.57 (as at 8th July, 2010) from N7.29 it closed on the 14th August, 2009.


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