Bank PHB increases earnings per share 644%, dividends up 977%

In the bank’s financial result just made public in the week, Bank PHB announced 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. Profit after tax at N7.75 billion is an impressive 217 percent higher than the N2.45 billion within the same period.

The bank’s high paced growth has resulted in a higher earnings per share which at 119 kobo is 644 percent higher than 16 kobo in 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. This is the second consecutive year the bank is paying cash dividends since the 2005 merger of Platinum Bank and Habib Nigeria Bank Plc that produced Bank PHB. The tonic for shareholders wealth is the recommendation of 1 for 4 bonus.

The dividend and bonus recommendation from the bank takes shareholders returns to new high. This comes on top of a capital gain of about 271 percent made by the bank’s shareholders since its last financial year end in June 2006 and about 400 percent since its listing in December 2005 at N1.95 per share. In 2007 alone, the bank’s shares have recorded a capital gain of 231 percent.

Post merger strong financial performance from Bank PHB has earned several accolades from analysts winning Vanguard Newspapers most improved bank award in 2006 and a similar nomination from Thisday newspapers for the same award.

The strong financial growth seen in the bank’s financials in 2006 is clearly sustained in its 2007 financial year. Details of the financials released over the weekend show that the bank’s gross earnings, made up of both interest and non interest income, increased 172 percent to N36 billion in June 2006 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 none interest fee based income made up the balance of Bank PHB’s earnings.

Bank PHB steep increase in earnings and profitability has been on the back steep increase in all other vital indices of the bank. Total assets and contingent at N480 billion represents a steep increase of 155 percent over N188 billion in 2006.

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

Sources close to the bank reveal that the bank’s fast paced growth rate is 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. At the current rate of growth analysts say that the bank is on track to meeting its set target.

In line with it business strategy of emerging the leading retail bank in the country, Bank PHB had rolled out several retail banking products with the flag ship being the Nigerian in Diaspora Account (NIDA) designed to meet the local financial needs of Nigerians in Diaspora. 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’s entered into partnership with Fortis Investments which has led to the establishment an asset management firm by both organizations. The Bank is also a direct agent for MonerGram, a cheap and convenient means for international money transfer into Nigeria.

Bank PHB was also the first financial institution in Nigeria to be invited by the US embassy to sponsor the highly prestigious Fulbright scholarship. The bank also won several awards; including NTA best advert of the year, Nigeria Institute of Marketing of Nigeria (NIMN) advert of the year award, most improved bank award by Vanguard Newspapers and a nomination from Thisday newspapers for the same award.