We Will Out-perform Our 15 Years Record -Akingbola
The Vice Chairman /Chief Executive Officer of Intercontinental Bank Plc, Dr. Erastus Akingbola has said the bank is on a threshold of a phenomenal growth that will make its recordbreaking performance in the last 15 years pale into insignificance.
In the past 15 years the bank has recorded consistent impressive growth in all performance indices.
For instance, its gross earnings have grown from a mere N0.05 billion in 1989 to N15.1 billion in 2003. This represents a growth of over 30,968.7 per cent, while profit before tax also recorded a whopping 18,454.6 per cent growth to N3.4 billion from N0.02 billion for the period under review.
Similarly, the bank's asset base rose by 28,859.3 percent from N0.30 billion to N71.4 billion, while deposit base jumped from N0.18 billion to N50.2 billion in the period under review.
The bank has also made one of the highest returns on investment in the industry in the last 15 years.
It has paid dividend consistently for the past 15 years, with a record six times bonus offer within the same period.
This means that an investor that bought 100,000 shares in 1989 has not only collected N10.6 million in dividend payment but also received a whopping 3,644,380 shares through bonus issue.
Addressing stakeholders recently in his office in Lagos, Akingbola said investors stood to reap even better returns on their investment after the consolidation of the bank with members of the group.
Recently, Intercontinental Bank signed a Memorandum of Understanding (MOU) with Equity Bank of Nigeria Limited, Gateway Bank Plc and Global Bank Plc signalling the commencement of the consolidation process that the group hopes would put it in good stead to play a leading role in the new banking dispensation that will emerge after the ongoing recapitalisation process.
According to Akingbola, the consolidation strategy "is not a gameplan to meet the CBN's prescribed N25 billion minimum capital base because we would already be there by end of this year without out necessarily going to our shareholders for additional capital. But ours is a strategy that would ensure that we play the leading position in the emerging banking industry where N25 billion may no longer be big enough ".
Although, the four banks had operated separately, they have in the last eight years shared an intricately interwoven ownership structure, identical business models and group operational synergy.
The postconsolidation Intercontinental Bank Group is expected to have one of the largest online network and capital base. The Intercontinental boss said after the successful conclusion of the expansion programme by all the individual member banks, " we shall integrate our total strength to roll out a banking institution large enough to alter the structure of competition in the industry."
As at December 2003, the Group's gross earnings stood at N33.3 billion, with total asset of N152.0 billion. During the period, the Group made a profit before tax of N6.4 billion, while total deposit stood at N103.8 billion.
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