Afribank Shares Tickle Investors
By Linda Elueme
Investors were yesterday excited about Afribank's public offer describing it as an investment that has great prospects for subscribers.
A cross section of institutional and individual investors THISDAY interviewed declared that the Bank's shares offer a unique opportunity for subscribers to be co-owners of an enduring financial institution, while others maintained that it is an opportunity to create a reliable legacy for off springs.
Investments analysts and stock brokers explained that Afribank' shares to be offered at N6.80 has business advantage of high return on investment, fast capital appreciation and an opportunity to own six different companies.
Other strengths of the bank investors considered to be great attractions are solid corporate structure, strong market presence, heavy IT deployment, ethical behaviour, experienced Board and management and wide network (150 branches out of which 111 are connected on line).
Beyond technology acquisition, Afribank has deliberately paid attention to ensuring that acquired technology serve the aim of improving the quality, efficiency, competitiveness and accessibility of the banking and allied services it offers customers.
Besides, the management has initiated activities to consolidate and expand the bank's core business areas activities in the area of commercial banking, retail banking, corporate banking and savings. The bank's increased participation in new businesses such as telecommunication, oil and gas, hospitality and tourism, solid minerals development, iron and steel and estate development sectors have also been commended by analysts as a positive strategic move.
As part of its contribution to the economic development of the economy, Afribank is actively involved in the financing of small-scale industries, which are the engine of growth of any economy. Lately, the bank has invested up to N1 billion in different companies under the scheme across the country.
Afribank is now well positioned to increase its market share and fully optimize its goodwill and potentials and post higher returns to stakeholders.
The injection of about N9 billion into the bank in addition to its group's shareholders' funds of about N8.6 billion is expected to place Afribank at a vantage position in the league of banks seeking to make the N25 billion capital base benchmark.
Afribank - one of the seven settlement in the country may also as a last resort, acquire some of the banks it currently clears their cheques and other financial instruments.
What customers and stakeholders of the bank should expect after the exercise is a stronger bank that will be in a position to give value added returns to stakeholders and customers.
The current challenges of the bank are to grow its balance sheet through appropriate strategies directed at growing profit. The proceeds of the offer, which are to be used for branch expansion, manpower development and improvement in technological infrastructure would also boost the profitability of the bank. "There is therefore no doubt that those who buy the shares of Afribank today, are certainly making a wise decision," an industry source stressed
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