ASO Savings records N1.2bn profit

ASO Savings and Loans Plc, one of the mortgage banks in the country, said on Friday that it had posted a profit after tax of N1.2bn for the period 2010/2011.A statement made available to our correspondent stated that the annual results released recently reflected a robust improvement upon 2009/2010 which was largely characterised by substantial loan loss provisioning. It said, "In the banks financial year under review, it achieved growth in virtually all indicators, but most reassuringly in an emphatic return to profitability after a substantial loss the previous year. The bank posted profit before taxation of N1.9bn and profit after taxation of N1.2bn which were over 160 per cent and 137 per cent higher respectively, than in 2009/2010 financial reports." The statement also said that the rising gross earnings, which at over N11bn, translated to 9.9 per cent improvement year-on-year, representing marked growth compared to previous years. It said, "The Operating expense growth was also moderate at 8.2 per cent year on year, but impressively well below estimated 2010 country annual inflation rate of 13.7 per cent, while cost to-income ratio stood at 83.0 per cent. At 40 per cent, return on shareholders funds is substantial and a rough proxy measure of the banks significant viability when compared with its estimated total cost-of-funds in the early-to-mid teens."
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