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Oceanic Bank earns N29.4bn in 9 months

Posted by Nigerian Tribune on 2006/07/10 | Views: 516 |

Oceanic Bank earns N29.4bn in 9 months


For the third quarter ended June 30, 2006, Oceanic Bank International Plc posted gross earnings of N29.4 billion.....

For the third quarter ended June 30, 2006, Oceanic Bank International Plc posted gross earnings of N29.4 billion, an 81 per cent growth over the preceding year’s level of N16.2 billion.

The bank, also for the same period, increased its profit before tax by 93 per cent to N10.6 billion as against the preceding year’s N5.5 billion. Its profit after tax also increased to N8.7 billion, a 91 per cent growth over the preceding year’s level of N4.6 billion.

The bank had forecast a profit before tax of N9.5 billion for 2006 financial year and a profit after tax of N7.8 billion, during its initial public offer (IPO) in 1994.

The third quarter result has confirmed Oceanic Bank’s position as the fastest growing financial institution in the country as its growth rate surpassed that of other banks that have so far released their results.

The bank is growing at an astronomically high rate, from an average of 65 per cent in the second quarter to that of about 90 per cent in the third quarter.

While the bank made a profit of N2.8 billion in the first quarter, as it grossed N8.62 billion, it recorded a gross earning of N17.9 billion in the second quarter with a profit of N6.2 billion as against N3.7 billion made in the corresponding period of 2005.

Market analysts have attributed Oceanic Bank’s increasing profitability and growth rate to its aggressive business penetration strategy and efficient cost management.

What is obvious from the bank’s three quarterly results released so far is that the bank has become more efficient in its cost management.

This is particularly important and reassuring for both customers and investors, especially as the new mega banks that just came out of the consolidation exercise have to practically demonstrate their ability to manage the huge amount of funds at their disposal.

Oceanic Bank’s profile has continued to rise on the local and international levels. The bank has recently been rated among the top 1000 banks in the world. It has also received positive ratings from renowned rating agencies. Just last week, the bank was rated ‘AA’ by Pharez Limited.

By the ‘AA’ rating, Oceanic Bank was described as "a bank in very good financial condition and strong capacity to meet obligations promptly."

The rating confirmed Oceanic Bank as the fastest growing financial institution in the country as it is the only financial institution, which moved from an ‘A’ position in 2003 to a robust ‘AA’ rating.

Adopting value chain marketing, innovative products and multi-channel distribution system, Pharez noted that the bank had succeeded in increasing its share of the market in all the parameters. It further noted that the superlative performance of the bank was expected to continue in the foreseeable future.

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