Nigeria: Investors Interest Rise on BankPHB Stock

BankPHB Plc emerged the stock of the week on the Nigerian Stock last week. It achieved this by posting the least Price Earnings (PE) ratio among all the companies that appeared on the price gainers’ chart throughout the week under review. It posted a PE ratio of 13.64 as at Tuesday, April 22, 2008. Also, its EPS stood at N2.25 at the same day.

BankPHB have carved a niche for itself in the nation’s financial landscape. The bank is known for churning out creative products that have held the market spellbound over the years.

It has consistently introduced creative products targeted at making life easier for its customers. It has gone on record as the bank with the most financial products. Some of its products include: Naira Credit Card, PHB Paytime, PHB EasyLife, Shares Acquisition Scheme, SALAD Instanta among many others.

To this end, the bank was named the Most Innovative Bank, in the Second edition of Vanguard’s Nigerian Bankers’ Award, that was held recently in Lagos.

In addition, a major reason that may have accounted for the interest it has generated in the minds of investors, is its impressive third quarter financial results that it recently released to the investing community.

The bank announced a strong financial performance in the third quarter result released to the Nigerian Stock exchange (NSE) confirming its consistent choice by analysts and national media as Nigeria’s fastest growing bank.

The result shows that its nine months earnings in 2008 is already 52 percent higher than its 2007 full year earnings while its profit before tax for the same nine month period surpassed 2007 full year profit before tax by 85 percent.

The result for the nine month period ending March 31, 2008 shows a strong 167 percent growth in gross earnings to N55.18 billion compared to N20.71 billion in March 2007. Its Profit before tax for the period under review stood at N19.03 billion which is 229 percent higher than the N5.79 billion profit before tax for the corresponding period of March 2007, while its profit after tax stood at N14.85 billion, a similar 229 percent growth on its profit after tax of N4.51 billion in March 2007.

The percentage growth rates shown in the results shows that it is maintaining its above industry average growth rate. Analysis of the bank’s financials last year had shown it growing its earnings and profits at about three times the average growth rate of the Nigerian banking industry.

To this end, the bank’s stocks remains a good buy for every investor because of the enormous potential it possesses.

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