MainStreet Bank Back to Profitability, Records N3 billion before H1, 2012
Mainstreet Bank is on the lookout for new suitors as AMCON seeks to dispose off the asset to foreign or a consortium of local investors.
The Bank disclosed in a statement that it made N3 billion group profit between January and May, 2012.
It also stated that its Non performing loans had dropped to less than four percent from over 50% during the crisis period.
It said, “Our balance sheet has become robust and clean. The bank as a whole is making a modest profit on a monthly basis. The game plan is to improve on our profitability by increasing the number of branches that make profit.”
AMCON injected N 318 billion to save the bank from collapse after years of mismanagement and financial window dressing.
Management said, “At inception, the bank was making an average monthly loss of about N2.5bn owing to the inability of most branches to cover their operational costs.
“Management rolled out cost saving measures, which drastically reduced overheads and stopped the financial haemorrhage that threatened the bottom-line of the bank.”
It said, “The bank’s capital adequacy ratio is positive of 27 per cent over and above the regulatory minimum of 10 per cent and better than the Top 4/Tier 1 banks in the industry. This compares favourably with the erstwhile negative capital adequacy ratio of negative 70 per cent. The current liquidity ratio is above 90 per cent; we hold most of our assets in fixed-income liquid assets (bonds, treasury bills etc).
“Our NPL ratio is four per cent and within the regulatory NPL ratio of five per cent and much stronger than our peers and the leading banks in the Nigerian banking industry.”
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onye ngwa
August 15, 2012 at 10:16 am
They are yet to pay off over 800 staff they wickedly relieved of their duties. It is these entitlements they are declaring as profits.