As Mainstreet Bank prepares for an AMCON disinvestment of its significant shares, the bank over the weekend announced a return to profitability of approx. N23billion off the back of a N48 billion group earnings. Recall that AMCON injected N 318 billion to save the bank from collapse after years of alleged mismanagement and financial window dressing.





In a release made available to market stakeholders, the bank stated that its “non-performing loans (NPL) had dropped to less than four percent (4%) from over fifty percent (50%) during the crisis period – with the bank making a modest profit on a monthly basis”. The game plan is to improve on our profitability by increasing the number of branches that make profit.”



According to the Banks management - “At inception, the bank was making an average monthly loss of about N2.5bn owing to the inability of most branches to cover their operational costs. Management rolled out cost saving measures, which drastically reduced overheads and stopped the financial haemorrhage that threatened the bottom-line of the bank. The bank’s capital adequacy ratio is positive of 27 per cent over and above the regulatory minimum of 10 per cent and better than the Top 4/Tier 1 banks in the industry. This compares favourably with the erstwhile negative capital adequacy ratio of negative 70 per cent. The current liquidity ratio is above 90 per cent; we hold most of our assets in fixed-income liquid assets (bonds, treasury bills etc). Our NPL ratio is four per cent and within the regulatory NPL ratio of five per cent and much stronger than our peers and the leading banks in the Nigerian banking industry.”




http://www.proshareng.com/news/20211/Mainstreet-returns-N23bn-PAT-confident-of-prospects-and-peer-positioning-