21 July 2014

Nigeria: Mainstreet Bank Posts N13.2 Billion Profit, Pays N6.25 Billion Dividend

For the second successive full-year following its nationalisation, the management of Mainstreet Bank Limited, at the weekend, said it recorded profit in its operations, with profit before tax of N13.2 billion from gross earnings of N49.6 billion in the 2013 financial year ended December 31.

Speaking at the bank's second Annual General Meeting on Friday in Lagos, Alhaji Gambo Ahmed, the bank's chairman said the "result is the outcome of strategies we have put in place in the last two years to build confidence, optimize costs, improve operational efficiency and customer service delivery."

A statement by the bank said the earnings growth was largely driven by increased interest income, following the significant 63 per cent growth in the bank's loan portfolio from N34.9 billion in 2012 to N57 billion in 2013, despite which non-performing loan ratio (NPL ratio) remained low at 3.66 per cent; well below the 5 per cent regulatory limit.

Continuing, Ahmed said: "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.

"We are particularly encouraged by year-on-year growth in our customers' deposit which shows their increasing confidence in the Mainstreet Brand."

On the several initiatives the bank put in place to drive operational efficiency, the bank's Group Managing/Chief Executive, Faith Tuedor-Matthews 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."

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