Mainstreet Bank Limited has consolidated its return to profitability as it recorded a profit before tax of N13.2 billion in its group financial performance for the year ended December 31, 2013.
Speaking at the bank’s second annual general meeting, last week in Lagos, Gambo Ahmed, chairman, board of directors, explained “that this result is the outcome of strategies we have put in place in the last two years to build confidence, optimise costs, improve operational efficiency and customer service delivery.”
The bank’s published financial result shows growth in all key financial indices. Gross earnings grew to a new high of N49.6 billion in 2013. The growth was largely driven by increased interest income as the bank significantly grew its loan portfolio by 63 percent from N34.9 billion in 2012, to N57 billion in 2013.
Despite the significant growth in risk assets, the non-performing loan ratio (NPL ratio) remained low at 3.66 percent, well below the 5 percent regulatory limit. The bank’s operational efficiency strategy yielded a 26.6 percent growth in net interest margin.
“We have achieved this result in spite of the socio-economic challenges and increased competition in the Nigerian banking industry. The result clearly reaffirms that the bank is on the right track of becoming a top tier bank,” explained the bank’s chairman.
“We are particularly encouraged by year-on-year growth in our customers’ deposit which shows their increasing confidence in the Mainstreet Brand,” Ahmed said.
On the several initiatives the bank put in place to bring efficiency in the bank’s operations, Faith Tuedor-Matthews, the bank’s CEO, noted: “Within the period under review, we successfully migrated to the latest version of Finacle core banking application, which has significantly improved our ability to deliver service to our customers and introduce innovative products and services. In addition, we have also automated many basic banking services such as account opening, funds transfer, card and cheque production etc., which has ensured that customers’ requests across the bank’s over 200 branches are promptly delivered in a standardised and predictable manner.”
The bank has continued to focus deeply on its core business as a commercial bank through the introduction of products and services targeted at the real sector of the economy, she said.
“Mainstreet Bank has been severally recognised as a leading bank in supporting the Agricultural Transformation Agenda of the President of Nigeria, Goodluck Ebele Jonathan, and the minister of agriculture and rural development, Akinwunmi Adesina.”
The effective disbursement of N10 billion to Agro-dealers under the Growth Enhancement (GES) scheme has ensured we continue to touch the lives of over one million farmers as well as boost employment amongst the Nigerian youth population especially in the rural areas,” she said.
Following the impressive results achieved in 2013, the AGM approved payment of a dividend of N1 per every N1 share held in the bank, totalling N6.25 billion. This dividend will be paid to AMCON upon receipt of the relevant approval from regulators.
Analysts, who commented on the published year 2013 financial of the bank, have commended the bank noting especially its significant improvement in operational efficiency.
Mainstreet Bank, fully owned by AMCON, is one of Nigeria’s full service financial institutions with an array of banking services for both retail and corporate customers. The bank has undergone series of transformational initiatives in the last three years and has been referred to as one of the most successful corporate turnarounds in Nigeria’s financial services industry in recent years.
HOPE MOSES-ASHIKE
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