TIB's Balance Sheet Rises by 34%
By Uche Obike and Tunyosola Ayansiji
Trans International Bank Plc (TIB) recorded 34 per cent growth in its total balance sheet figure, from N14.5 billion in 2002 to about N19.4 billion in the financial year ended December 31, 2003.
Reviewing the bank's operating results for the period under review recently, the Chairman, Professor Ademola Oyejide told the shareholders at the 15th Annual General Meeting of TIB, that the bank recorded substantial increases in total assets, loans and advances and deposit liabilities.
The bank's loans and advances rose by 44 per cent, from N5.432 billion in 2002 to N7.846 billion in 2003, while total deposit liabilities also increased to 4413.364 billion indicating an increase of 37 per cent over the preceding year's figure of N9.785 billion.
The bank also achieved a marginal increase of two per cent in gross earnings from N3.307 billion in year 2002 to N3.385 billion in 2003, while profit before tax stood at N204.615 million, reflecting a drop of more than 50 per cent from the profit figure of the previous year. The Chairman explained that "factors of the economic environment, crash in interest rate, additional provision for loan losses, increase in cost of doing business, e.g cost of funds on deposits, during
the year were responsible for the downward trend."
He, however, assured that proactive step had been taken to reverse the down-ward trend and positive developments were expected to be witnessed in the immediate future.
Oyejide announced further that new products introduced during the year, namely, TIB Teachers Account, TIB Retirement Account and TIB Pilgrims Account were expected not only to add to deposits globally but also to produce cheaper deposits, thereby reducing the cost of funds.
Also, during the year under review, the Chairman said that the bank had radically reviewed the state of its risk assets and made full provision for most old loans regarded as suspect and delinquent accounts.
"Emphasis will be on the pursuit and recovery of these accounts and institution of sound riskassetmanagement process in the coming year," he said.
According to him, the board, through its Debt Recovery Committee, had started to make a good impact in this area. "It has taken the stand that no debt should be regarded as lost. This has contributed to the improvement witnessed in classified assets in 2003, over the situation that existed in 2002. For an illustration, nonperforming assets as a percentage of total risks assets which was 24 per cent in 2002 was 20 per cent in 2003. Our efforts in this area will be sustained," Oyejide said.
He recalled that in line with the suggestion made during the 14th Annual General Meeting held in Abuja and in the spirit of the Basle Accord which has led to the pronouncement from the Central Bank of Nigeria, namely that all banks must increase their paidup capital to N2 billion by December 31, 2005, the board of directors had taken step not only to meet the new capitalisation requirement on due date, but also to increase the authorised share capital to N3 billion.
Meanwhile, the bank's paidup capital is to be raised from the existing 1 billion to 1.5 billion. The bank also declared a bonus issue of one share for every two shares held by the shareholders.
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