Kayode Ekundayo
4 July 2011
Lagos — Bank PHB Plc has declared a profit before tax of N32 billion for the year ended December 31, 2010.
In its presentation to the Nigerian Stock Exchange (NSE), the bank also declared a loss after tax of N58 billion.
BankPHB is one of the rescued banks whose chief executive officer was sacked by the Central Bank of Nigeria (CBN) in 2009.
It said due to the high level of losses in the preceding year, the bank had accumulated Deferred Tax Assets (DTA) of N88 billion while the intangible asset was written off the books through the tax line, leading to a loss after tax of N58 billion.
The bank’s management stated that it has followed the provisions of the prudential guidelines issued by the Central Bank, effective July 2010 where DTA was classified as intangible assets that should be taken against capital.
Our investigation reveals that some other intervened banks continue to carry the DTA on their balance sheets.
It will be recalled that the Central Bank of Nigeria (CBN) had expressed concern with the potential estimated industry-wide mark-to-market losses of N350 billion from the portfolio of FGN Bonds.
CBN had encouraged the banks to carry out their bond classification with a view towards eliminating the losses. In addition to write-off of the DTA, the bank also took additional clean up provisions to ensure that future earnings are unimpaired.
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Bank PHB Declares N32 Billion Profit