Bank PHB declares N10 billion profit

  • Saturday, September 29, 2007 - By SEUN ADESIDA
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BankPHB has declared a profit of N10.28billion for the financial year ended June 30, 2007. It said that this is consistent with its growth trend and strategic objective to be among the top five banks by 2008.

Bank PHB is growing three times faster than the average growth rate in the Nigerian banking industry and this is exciting investors. The bank’s financial results provide a strong justification for its share price, which has made a capital gain of about 271 percent, since the last financial year ended in June 2006 and about 400 percent, since its listing in December 2005 at N1.95 per share.

Ahead of the expected release of the bank’s result, its share price, which had slipped from its year high of N30 last week, in the grip of the general bearish trend in the market, had regained its upward swing closing at N31 per share last Friday. The bank’s share price has made a capital gain of 231 percent this year alone.

Details of the financials result show that the bank’s gross earnings, made up of both interest and non-interest income, increased by 172 percent to N36 billion in June 2007, from N13 billion in the corresponding period of 2006. Core income, made up of interest earnings, formed the greater bulk of earnings, about 52 percent of gross earnings, while non-interest fee-based income made up the balance of Bank PHB’s earnings.

Growth in Bank PHB’s profit before tax was even more impressive. The result shows a profit before tax of N10.28 billion, representing an increase of 192 percent over the profit before tax of N3.52 billion in June 2006.
Riding on the impressive performance, Bank PHB board of directors is proposing a cash dividend of 70 kobo per share, 977 percent higher than 6.5 kobo paid in 2006.

There is also a strong evidence of increased customer confidence in Bank PHB, reflected in a sharp increase in its deposit base. Total deposits at N307 billion in 2007 represents 181 percent increase on a deposit base of N109 billion in 2006. Analysts trace this to the strong acceptance of the Bank PHB brand by the Nigerian banking public. Several studies and research have always rated the acceptance of the Bank PHB brand well above competitors.

Sources close to Bank PHB reveal that its fast paced growth rate is in line with its target of ranking among Nigeria’s top five banks and West Africa’s leading retail banking services provider in the next three years. By its latest results, Bank PHB effectively becomes the eight largest bank in Nigeria. Based on the current growth rate, analysts forecast that the bank will rank among the top five by next year.

In line with its business strategy of emerging the leading retail bank in the country, Bank PHB had rolled out several retail banking products with the flagship being the Nigerian in Diaspora Account (NIDA) designed to meet the local financial needs of Nigerians abroad. The bank also rolled out its "Good Life" products, a consumer finance product to help Nigerians acquire both investment and consumer products and make payment at their convenience. The acceptance of the products had boosted the bank’s earnings.

Bank PHB also went into several strategic partnerships and affiliations in its bid to build an enduring brand. The bank entered into partnership with Fortis Investments, which has led to the establishment of an asset management firm. The bank is also a direct agent for MoneyGram, a cheap and convenient means for international money transfer into Nigeria.
Bank PHB is also the first financial institution in Nigeria to be invited by the US embassy to sponsor the highly prestigious Fulbright scholarship.

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