Bank PHB Reports N439 Billion Naira In Losses

Lagos (THEWILL) – Nigeria’s Bank PHB, one of the recued banks on Friday reported a pre-tax loss of N439 naira ($2.9 billion) for the 15 months ending in September 2009, mainly due to provisions for bad loans.

The rescued bank said it has a total of N415 billion naira in non-performing loans at the end of September, which is about 62 percent of all the loans it made out to customers.

The bank was mostly hit by bad credit, which it granted oil traders and speculators in the Nigerian stock market, which tanked at the beginning of the global recession.

The bank has complied with the Central Bank directive that all banks maintain uniform financial reporting by its filing.

Bank PHB says it conducted an independent stress test and acknowledges that its capital base is weak, noting it is consulting with financial advisers and intends to seek “additional capital resources,” emphasizing it would aggressively pursue its debtors.