The Sun News Online

Players and stakeholders in the financial market are always on the look out for companies that have strong fundamentals with prospects of maximizing shareholders’ value even in the face of inclement operating environment.

Their desire to maximize investments is hinged on the age long axiom that profit is the driving force of any business success. It is in this context that industry players and stakeholders are lauding Oceanic Bank International Plc over its just released fourth quarter results.

According to the recently results released on the floor of the Nigerian Stock Exchange (NSE), the bank recorded significant growth in all performance measurement indicators in the fourth quarter ended September 30 2008 with gross earnings hitting N150.9 billion.

The gross earnings which rose by 101 percent compared to N74.94 billion recorded in the corresponding period in 2007 confirmed its leading position in the Nigerian banking industry.
Profit before tax (PBT) was also on the upward swing increasing by 127 percent to N52.23 billion in contrast to N23.01 billion posted at the preceding year.
The bank’s Profit after tax (PAT) increased by 135 percent to N41.24 billion in contrast to N17.54 billion in 2007.

A total of N11 billion was paid as tax to the government indicating an increase of 101 percent over N5.47 billion paid the previous year.

The surge in profitability did not come as a surprise as market players have already predicted that Oceanic Bank could surpass a profit of N50 billion in the fourth quarter.
National Coordinator Independent Shareholders’ Association of Nigeria, Sir Sunny Nwosu, commenting on the third quarter results predicted that that the bank will hit the N50 billion mark in the fourth quarter.
He said “I am very happy about the result. It is a fulfilment of what the MD told us that the result will be very encouraging. It has shown that Oceanic Bank stands out in the industry and the prospects for shareholders are very bright.

I will not be surprised if Oceanic Bank hits a profit before tax (PBT) of N50 billion in the fourth quarter if the trend is sustained.”

Chief Executive Officer of the bank Dr. (Mrs.) Cecilia Ibru speaking on the fourth quarter result said the high turnover and profitability are the manifestation of strategies put in place by the management to take the bank to a greater height.

She assured that the bank would ensure bumper returns on investments of its shareholders while rendering the best services available in the industry to its teeming customers. Oceanic, she assured, would be the best bank in all ramification.

The performance reflects Oceanic Bank’s track record of consistent and superior performances over the years. For instance, the bank recorded gross earnings of N31 billion in the first quarter ended 31st December, 2007.

The amount represented a 138 percent growth from the N12.9 billion recorded in the corresponding period of the preceding year.

In the same period, Profit before Taxation rose to N10.9 billion representing a 176 percent growth from the N4.2billion recorded in the corresponding period of last year.
Profit after Tax was N8.8billion, representing an increase of 169 percent over the N3.4billion recorded at the preceding first quarter. The bank paid tax of N2billion to the government, a growth of 214 percent over N701 million.

It would be recalled that the bank started 2008 financial year on a positive note, posting a gross earnings of N66.47 billion in the first six months. This represented an increase of 129 per cent over its gross earnings of N29.08 billion recorded in the corresponding period of 2006/2007 financial year.
Profit after tax increased to N20.30 billion from N8.28 billion indicating a 145 percent growth, having paid a tax of N4.76 billion to the government, an increase of 181 percent compared to N1.70 billion it paid as tax in the previous year.

The bank earned N106.7 billion in the third quarter of 2008 over N47.52 billion in the same period in 2007.

Profit before tax rose to N40.7 billion, representing an increase of 148 per cent growth from its previous year figure of N16.4 billion, the bank posted N33.6 billion profit after tax as against N13.6 billion made in the preceding year.

Profit after tax (PAT) moved in tandem with other fundamentals as it went up by N19.98 billion or 147 percent to N33.61 billion in contrast to N13.63 billion posted in 2007.
Oceanic Bank under the leadership of Dr. (Mrs.) Ibru has strategically grown its network from 12 branches as at September 31st, 2000 to about 350 Business Offices as at 30 September 2008. The bank has deployed numerous automated teller machines to all branches all a bid to lessen the hassles of banking for her customers.

The bank has created a microfinance unit charged with the responsibility of ensuring that banking goes to the un-banked members of the society.
The micro finance scheme has kicked off with the bank deploying an array of products which are drawing hordes of customers to the bank.

The bank successfully launched the products into the market last March, these products include: Oceanic Micro Savings Account “OMSA”, Oceanic Festival Opportunity Loan “No Shaking”, Oceanic Micro Asset Leasing “Carry Go”, Oceanic Group Finance “Unity Loan” and Oceanic Trading Finance “Help me Grow”.

The bank has also taken the advantage of its wide branch network of over 350 business offices, through which the micro finance products have been marketed and customers attended.
As a result, since inception of the oceanic microfinance operations, our microfinance client portfolio had grown from less than 100 clients in March to more than 150,000 as at the end of September, 2008 i.e. within 6 months of operations. Average Loan disbursed per client remained at N100, 000. With the slogan of service excellence, the Oceanic micro finance product pricing remains the cheapest in the market while the turn around time for its loan services is 48hours, if the documentation is complete.