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Afribank Posts N17.22bn in 6 Months


October 11 , 2008

Afribank Nigeria Plc has reported Profit Before Tax (PBT) of N17.22 billion for the half year ended September 30, 2008 in what it describes as a confirmation of its leadership and market rating “as a fast growing bank”.


The figure, which has surpassed the last financial year’s twelve-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, it said.


The aggressive change initiatives, market deepening and business expansion of the bank also resulted in the growth of its half-year Gross Earnings 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 332 per cent leap.


Market analysts are of the opinion that with the impressive scorecard in the half year, Afribank has set the tone for a robust financial year end come March 2009.


It is believed that the bank’s remarkable growth in its 2007/2008 financial year and the 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 says it 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, Afribank was hailed as 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 ongoing 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 1959


To market operators, the announced unaudited results may not have come as a surprise. Just under a decade ago Afribank ranked among the top four elite banks in Nigeria and the bank has made no pretences 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 infrastructure 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.


Remarkably, the bank’s share price on the Nigeria Stock Exchange has been one of the isolated cases that have remained stable in spite of the persistent bearish trend in the capital market, what market analysts see as a reflection of the market’s confidence in  the   bank.


Also, 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 could imagine that Afribank’s shareholders are waiting with bated breath, expectant of the largesse that is certain to come next year,” the bank said.

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