Monday, 29 April 2013
Nigeria: Enterprise Bank Profitability Rises 316 Percent to N11 Billion
Enterprise Bank is one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Spring Bank Plc and its subsequent recapitalization and ownership by the Asset Management Corporation of Nigeria (AMCON).
In its first five months of operation which ended December 2011, the bank recorded a loss of N5.2billion hence the N11 billion profits recorded represents a growth of 316.6 per cent during the period. The sharp increase in profitability was occasioned by 283.9 per cent growth in gross earnings to 40.4billion as at year ended December 2012 from N10.5billion achieved in the five-month period ended 2011.
The bank's deposit also grew from N162.6billion to N208.4billion between the year ended 2011 and 2012 respectively. This represents a growth of about 28.2 per cent. Total assets also experienced a growth of 31 per cent between the periods from N198.5billion as at end of 2011 to N261.1billion as at the end of 2012.
Speaking at the first annual general meeting of the bank held last week, the Chairman of Enterprise Bank Limited, Mr. Emeka Onwuka, attributed the achievement by the bank to a sustained growth in quality risk asset creation, which equally engendered growth in interest income.
He said that in addition to "improvements in our other banking income items such as commissions, fees, electronic banking income, significant improvements in trade-related transactions, facilitated through our strategic focus on Small and Medium Enterprise (SME) helped in boosting our fees and commission income."
Onwuka declared that by this sterling performance, "a solid foundation has been built by the bank to ensure a sustainable growth in its business activities." He said the executive management has put in place valuable structures with the full support of the Board of Directors. These he said include renovations of the corporate head office and branches of the bank to enhance its competitiveness in the industry.
He said several brand management initiatives were implemented in the year, in a bid to create more awareness about the bank in the marketplace, while the bank's electronic banking platform has been further enhanced by capital investments in Automated Teller Machines (ATMs), Point of Sale (POS) terminals and several variants of electronic cards.
"Business alliances were also entered into with major players in e-business, so as to ensure seamless transaction processing on the platform. Capacities and competencies have been built in retail and SME banking business - sectors, which shall fundamentally shape the future of banking in Nigeria.
"The Core Banking Application and other business applications have been upgraded to latest versions, which have enhanced the robustness and resilience of the platforms for effective and seamless business activities. The greatest asset; staff are being trained and re-trained on an on-going basis on courses and curriculum that would ensure enhanced productivity in their respective roles in this great institution", he said.