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Afribank Investors Excited By Proposed N100bn Offer


September 28, 2007/Independent



Through the offer, which is billed to open next month having received the approval of the regulatory authorizes, Afribank seeks to shore up its capital base by N100 billion.


Prospectus investors are warming up to partake in the offer on the basis of its acclaimed uniqueness.


Analysts say the Afribank offer stands alone in the market because the bank remains one of the old generation banks with a legacy and is trusted as well as tested by its customers and shareholders.


The Group Managing Director and Chief Executive of the bank, Mr. Sabastine Adigwe had said Afribank was floating the offer to create additional capital base needed to shore up working capital, execute juicier and big ticket transactions and also position for industry leadership.


\"We need to create capacity to do multi-billion transactions and will continuously invest in information technology and build other capabilities to do mega business. We need to recapitalize our subsidiaries and to properly position them,\" he added.


Afribank is gradually regaining lost market share through aggressive marketing, proactive management, increased visibility and innovative product development.


Some of the new products which are targeted at general and niche markets include Cheque Purchase Facility, Afribank Mobile Banking, Share Purchase Loan, e-service and Advance payment Guarantee.


Arising from its seamless consolidation, the bank is implementing a broad strategic plan, strategically developed to see it emerge a market leader on the continent in the next five years.


Group Turnover increased from N 15.6 billion in 2006 to N27.53 billion in 2007. The contribution of subsidiaries to gross income increased from N 0.99 billion in 2006 to N2.87 billion in 2007 while their contribution to pre-tax profit increased from N0.28 billion to N 2.2 billion.


Group’s pre-profit cum exceptional Item and taxation of N9.13billion in 2007, when compared with N3.98billion it generated in 2006, represented an increase by 129.356%.


Total Assets and Contingent Liabilities of the Bank increased from N158.89billion to N217.4billion, representing an increase of 40.1% by the last audited report to March 2007.


Total Deposits and other Accounts grew by 54.82% from N91.89billion in 2006 to N142.27billion in 2007.


The bank continued with the impressive performance to the first quarter of the running year, 2008. Gross earnings leapt during the period to about N9billion from about N4billion realized in the comparable period of 2007. Pre tax profit in three months stood at N9.13billion against N3.98billion made in the previous year, indicating the rebound of the fundamentals. –



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