Oceanic Bank International Plc has announced Gross Earnings of N64.27 billion and Profit Before Taxation of N10.19 billion in its unaudited results for the half year ended June 30, 2010, signposting a trend of sustained profitability for the financial institution.

Coming from a loss before tax of N50.78 billion in the corresponding period of 2009, the Profit before tax of N10.19 billion points to the success of the Bank's transformation programme and an unfolding brighter future. According to the management, the results which follow a similar trend witnessed in the Bank's Q1 2010 performance were driven by loan recoveries, competitive advantages in retail banking, improved efficiency in business processes and savings in administrative expenditure.

In addition to its business performance, Oceanic Bank's commitment to good corporate governance, superior service delivery, effective risk management, and transparency have further enhanced its brand equity in the financial services sector. Speaking on the Bank's performance, John Aboh, the Group Managing Director, said: "These results demonstrate the enduring value proposition of Oceanic Bank to our customers. We have sustained the momentum in performance and remain committed to delivering superior value to all our stakeholders through excellent and friendly banking services that are easily accessible across over 375 branches nation-wide."

Aboh noted that the Bank had over the past six months raised the bar of customer service in the sector, with particular emphasis on retail end of the market through provision of specialized products. Operating expenses were N34.92 billion versus N45.39 billion in the first half of 2009 indicating better cost management, while write-backs were N9.94 billion versus provisions of N46.09 billion in the comparable period.

Shedding more light on the facts behind the figures, Oyinkan Adewale, Oceanic Bank's Executive Director and Chief Financial Officer (CFO), said as of June 2010, customer deposits had grown in excess of N600 billion, while cumulative loan recoveries amounted to N97.70 billion. Commenting on the Bank's future outlook, Aboh said Oceanic had emerged a stronger institution from its restructuring, adding that the half year results show Oceanic Bank is in an excellent position to sustain its growth and poised to implement its recapitalization plan.

The management is exploring several options for recapitalizing the Bank through a combination of internally generated profits, sale of non- performing loans to Asset Management Corporation of Nigeria (AMCON), and an inflow capital injection from strategic investors.

The Bank's management added that the eventual recapitalization of Oceanic Bank would significantly boost profitability and translate into improved returns for shareholders, better service for customers, job security for staff, and a solid future that would see Oceanic retaining its position as a reputable brand in the Nigerian banking sector.