FINANCIAL PERFORMANCE -REVIEW
Gross Earnings: The Bank’s gross earnings for its half year report inched higher by 2.91%, which was N331.586Billion as at June, 2019 against N322.201Billion as at June 2018, factors that contributed to this marginal appreciation were other income that inched higher by 23.86%, which consist of; net income on fees and commission that increased by 33.62%, along with trading gains that appreciated by 22.53%, however other operating income declined by 12.53%.
Revenue: The Bank’s Revenue for the period under review declined by 6.15%, as at June, 2019 interest income stood at N214.601Billion as against N228.670Billion interest income earned as at June 2018. The reduction in Interest Income was as a result of decline in Income from loan and advance to customers that depreciated by 21%. However interest earned from placement grew by 138%.
Gross Operating Expenses: The Bank’s gross Operating Expenses that comprises of Interest Expenses, Credit Impairment Charges and Administrative Expenses, of this element only Interest Expense declined for the period under review, this was as a result of decline recorded in both Time deposit and Borrowed Fund & lease that depreciated by 8% and 6% respectively, while a marginal increase of 1.08% was recorded on other operating Expenses, while credit impairment charges inched higher by 41.31%, this was influence by increase in charges for loans & advances, which appreciated by 93% .
Bottom Line: The Banks PAT inched higher marginal by 8.74%, this was majorly achievable through significant performance recorded on other income, mainly from net income from fees & commission and trading income, as the Bank’s core business activity recorded a negative growth given decline in interest income from loans & advances, also the Bank’s operating efficiency recorded some moderation given its close to par administrative expenses and decline in interest expense. In our view, the Bank has recorded some moderate performance given the general industry outlook thus far.