Bank PHB Posts N3.5b Profit
By Mojeed Jamiu
 30th NOV 2006

Bank PHB on Tuesday announced a pre-tax profit of N3.52 billion for the financial year 2006, a 233 per cent rise over the previous figure of N1.05 billion.

It recommended dividends of N1.25 billion for shareholders.

Gross earnings amounted to N13.28 billion, or 99 per cent over the N6.62 billion made in June 30, 2005; fuelled by more than a doubling of the bank’s core business.

Interest income hit an all time high of N8.28 billion, non-interest income rose 128 per cent to N5.0 billion, the result of a strategic spread and sustainability of earnings.

Though merger expenses shot up operating costs, Bank PHB retained efficiencies in operations, raising profit before tax significantly.

Profit after tax was N2.45 billion, a 248 per cent rise above the N703 million recorded in 2005.

Profit before tax per N100 of earning stood at N26 in June 2006, a 68 per cent increase over the N15 per N100 of earning made in June 2005. This shows a tremendous improvement in efficiencies, which analysts trace to the synergistic benefits from the bank’s merger.

Also significant is a steep increase in the deposit base by 395 per cent, to N109 billion; attributable to greater confidence by the public in Bank PHB.

The increased deposits resulted in a buoyant liquidity position, which stands at about 66 per cent of its non-risk adjusted assets, well above the 40 per cent recommended by the Central Bank of Nigeria (CBN).

This impacted positively on the bank’s holdings of low risk, and high yielding money market instruments which totaled over N90 billion as of June 2006.

The bank made huge credit expansions to the private sector to boost the economy.

In a year when most merged banks could not pay dividend, its decision to pay has gladdened the hearts of shareholders, and resulted in a surge in its share price on the Nigerian Stock Exchange (NSE).

Total assets, including contingents, shot 209 per cent to N188 billion in June 2006, from N61 billion in June 2005.

This places Bank PHB among the top 10 in the country.

Its board is recommending dividends of N1.25 billion in 2006, after fully writing off goodwill arising from the merger of Platinum Bank and Habib Nigeria Bank in 2005.

Observers link the increased confidence in Bank PHB to its highly successful post consolidation creative branding and strategic initiatives.

Beyond a strong award winning post consolidation advertisement campaign, it has taken bold initiatives that include the launch of an array of widely acceptable products.

It is in partnership with international organisations, such as Fortis Investments – for which it got CBN’s approval to manage a portion of Nigeria’s foreign reserves – and MoneyGram international money transfer.

It also has reputable international alliances for its applauded Nigerians in the Diaspora Account (NIDA), a first in the market.

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