Alpha Morgan Bank Limited’s reported ₦1.9 billion profit before tax and customer deposits exceeding ₦103 billion have drawn attention to the financial performance of the relatively young lender, amid questions about the level of publicly available information supporting its headline figures.
The development comes as the bank announces the relocation of its head office from 44 Adetokunbo Ademola Crescent, Wuse II, Abuja, to 52 Adetokunbo Ademola Street, Victoria Island, Lagos, describing the move as a new phase in its growth and nationwide expansion.
According to financial performance figures publicised by the bank, it recorded a profit before tax of ₦1.9 billion and gross earnings of ₦13.1 billion within its first 10 months of operations. It also reported customer deposits exceeding ₦103 billion, a 67 per cent net interest margin and a zero per cent non-performing loan ratio.
While the figures suggest a strong start for the institution, the level of detail available in the published financial summaries leaves important questions about the composition and sustainability of its earnings, the deployment of customer deposits and the performance of its loan portfolio.
In particular, the reported 67 per cent net interest margin requires clarification of the calculation method and underlying figures to enable independent assessment.
Net interest margin is generally calculated by comparing net interest income with average interest-earning assets. Without the relevant figures and an explanation of the methodology used, the reported percentage cannot be independently verified from the headline disclosure alone.
The bank’s reported zero per cent non-performing loan ratio also raises questions about the size, age and composition of its lending portfolio, as well as the basis on which the ratio was calculated.
Although a zero per cent ratio may reflect strong asset quality, the age of a bank’s loan portfolio is an important consideration when assessing whether such performance can be sustained over time.
Similarly, the bank’s reported customer deposits of more than ₦103 billion represent funds entrusted to it by customers and do not constitute shareholders’ funds or profit. A fuller assessment of the bank’s financial position would require details of how those deposits have been deployed across loans, investments, cash and other assets.
The publicly accessible financial summaries reviewed for this report did not provide sufficient detail to independently assess the bank’s capital adequacy, liquidity position, operating expenses, impairment provisions and the composition of its assets and liabilities.
The available information also did not establish whether the reported 10-month figures had been independently audited or reviewed.
These disclosure gaps do not, in themselves, establish any wrongdoing by the bank. However, fuller financial information would enable customers, investors and analysts to better evaluate the quality and sustainability of its reported performance.
Alpha Morgan Bank said the relocation followed milestones that included the expansion of its branch network across several Nigerian cities.
The bank also highlighted its investment in inclusive recruitment, community support through Corporate Social Responsibility initiatives and economic knowledge-sharing through its quarterly Alpha Morgan Economic Review webinar featuring economist Bismarck Rewane.
The Managing Director and Chief Executive Officer, Ade Buraimo, described the relocation as an important step in the institution’s growth journey.
“The relocation of our Head Office from Adetokunbo Ademola, Abuja to Adetokunbo Ademola, Lagos is unique and exciting, representing an important step in our growth journey,” Buraimo said.
He attributed the bank’s progress to the dedication of its employees, customers’ trust and its commitment to building a strong, accessible and sustainable financial institution.
Buraimo also thanked the Central Bank of Nigeria (CBN) for its continued support and expressed appreciation to the bank’s board, management and staff.
The relocation places the bank’s head office in Victoria Island, one of Nigeria’s major commercial and financial centres, as it seeks to strengthen its presence in the country’s banking market.
As Alpha Morgan Bank pursues its expansion plans, access to detailed financial statements would provide a clearer picture of its reported performance.
Key information would include the breakdown of its income and expenses, total assets and liabilities, shareholders’ equity, capital adequacy and liquidity ratios, gross loans and impairment provisions.
Further details on the calculation of its reported net interest margin and non-performing loan ratio would also help stakeholders assess the figures in their proper context.
The bank’s reported ₦1.9 billion pre-tax profit and deposit base of more than ₦103 billion are notable figures. However, its long-term performance will ultimately depend on the quality of its assets, the sustainability of its earnings, prudent management of customer deposits and compliance with applicable banking regulations.
Alpha Morgan Bank says it remains committed to expanding its nationwide presence, deepening customer relationships and creating lasting value for the communities it serves.
