With the successful integration of ETB, we have seen significant growth in our business. In the first nine months of the year, gross earnings rose to N50.7 billion representing 93% growth year-on-year riding on a 110% growth in interest income. Operating income also grew by 78%, while profit before and after tax rose 58% and 64% respectively.
In line with our forecast, loans and advances grew by 23% quarter-on-quarter to N229.4 billion on the back of our enhanced presence in the corporate banking space. We also grew customer deposits by 13% quarter-on-quarter to N434 billion and added over 22,000 retail accounts.
Despite the 400 basis points increase in Cash Reserve Ratio in July, we recorded a 70 basis points reduction in cost of funds to 6% (quarter on quarter). We however witnessed an increase in cost-to-income ratio resulting from one-off merger related expenses.
In the last quarter of the year, we will consolidate on the progress made thus far and sustain our drive towards building our retail deposits with a view to achieving our corporate goals for year-end.
• Gross earnings rose 93% to N50.7 billion (Q3 2011: N26.3 billion)
• Net interest income rose 84% to N18.2 billion (Q3 2011: N9.9 billion)
• Non-interest income increased 49% to N11.2 billion (Q3 2011: N7.5 billion)
• Operating income rose 78% to N28.3 billion (Q3 2011: N15.9 billion)
• Operating expenses increased 82% to N23.5 billion (Q3 2011: N12.9 billion)
• Profit before tax grew 58% to N4.8 billion (Q3 2011: N3.0 billion)
• Total assets increased by 12% to N564.1 billion (Dec. 2011: N504.7 billion)
• Customer deposits increased by 11% to N434.0 billion (Dec. 2011: N392.0 billion)
• Net loans & advances grew 40% to N229.3 billion (Dec. 2011: N164.3 billion)
• Net interest margin of 6.0% (Q3 2011: 4.8%)
• Cost-to-income ratio of 83.1% (Q3 2011: 81.1%)
• Annualized Return on Average Equity of 13.9% (Q3 2011: 17.5%)
• Non-performing loan ratio of 2.4% (Dec. 2011: 4.8%)
• Net Loan-to-deposit Ratio of 51.7% (Dec. 2011: 40.1%)
• Liquidity Ratio stood at 61.4% (Dec. 2011: 64.0%)
A PDF of the latest results with financial tables may be downloaded here.
