Afribank Records N 5.52 Bn Half- Year Profit

Afribank Nigeria Plc has posted a Profit Before Tax (PBT) of N5.52billion for the half-year unaudited financial Account for the period ended June 30, 2010.
The bank recorded a PBT of N3.52billion in the second quarter, which represents a growth of 77% over the N1.99billion recorded in the first quarter of the year ended March 31, 2010. The quantum growth indicates strong prospects of better returns in the financial year for the bank.
Other performance indicators of the bank also witnessed growth as gross earnings moved up from N25.09billion in the first quarter to N46.56 billion in the second quarter, amounting to 86% increase within the period.
Market watchers lauded the bank’s strategy, which is being driven by improved efficiency, as the management was able to reduce its administrative overheads to N12.77billion in the current half-year from N19.28billion in the corresponding period in 2009.  Also, the interest expense paid was reduced from N31.51billion in 2009 to N26.97billion in the half-year ended June 2010.
The management of the bank restated its commitment to sound corporate governance in all its operations. “We expect that our performance will continue to improve in the year. We will continue to remain focused on our guided growth strategy and implement sound corporate governance practices in all our operations.”
The steady improvement in the fundamental performance ratios of the bank is an indication that the growth strategies initiated by the bank, anchored on the Two-year Turnaround Plan, is delivering on its promises.
The business approach of the bank has facilitated its penetration into a club of big lenders and partnership with industry leaders in key sectors of the economy. Afribank’s creative approach to managing public sector business has also yielded results with the bank now emerging as major revenue collections bank for many public and private sector institutions.
The bank’s turn-around plan has an overall intent to ensure the business continuity of Afribank by leveraging on competitive strategies such as value-chain banking, improved relationship management, service excellence, group integration, product innovation and market intelligence, cost optimisation and retraining of staff. All these strategies are hinged on excellence.
 “Our overall aim is to continue to strategically grow our deposits liabilities, grant quality loans, to our customers, in our identified target market; improve our operations by leveraging on technology and upgrade the skill set of staff in risk management, banking operations and relationship management,” the bank added.