BankPHB Plc has declared a Profit Before Tax, PBT, of N32 billion for the year ended, December 31, 2010.

The company in a statement on the result presented to the Nigerian Stock Exchange, NSE, Thursday, said that due to the high level of losses in the preceding year, the bank had accumulated Deferred Tax Assets, DTA, of N88 billion, adding that this intangible asset was written off the books through the tax line, leading to a loss after tax of N58 billion.

According to the management of the bank, it has followed the provisions of the prudential guidelines issued by the Central Bank of Nigeria, CBN, effective July 2010 where DTA was classified as intangible assets that should be taken against capital.

It will be recalled that the Central Bank of Nigeria (CBN) had expressed concerns with the potential estimated industry-wide mark-to-market losses of N350 billion from the portfolio of FGN Bonds.

The 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.

These include mark-to-market losses of N16.2 billion on the bank’s FGN bond portfolio. Investigations from our business desk also reveal that other banks are yet to complete the mark-to-market exercise and may be forced to deal with it as they adopt IFRS fair value measurements from 2012.