Platinum Habib Bank (Bank PHB) has successfully acquired Spring Bank Plc having obtained the minimum 51 percent of over 3 billion shares of Spring Bank Plc it needs to take over the financial institution.

With the acquisition of majority stakes in Spring Bank Plc now complete, the expectation is that Bank PHB will move in with a new management at the expiration of the tenure of the current Central Bank of Nigeria (CBN) appointed Interim Management, by December 31, 2008.

Bank PHB had on November 28, 2008 opened a N21 billion bid for more than three billion units of Spring Bank Plc in a bid to take its stake in the bank to more than 51 percent to give it controlling stakes in Spring Bank Plc. Bank PHB, at the time had 33 percent of the issued shares of Spring Bank which was acquired with the approval of Nigeria's banking and capital market regulatory authorities.

The Group Managing Director and CEO of Bank PHB, Mr. Francis Atuche, who was elated at the outcome of the Mandatory bid stated that "notwithstanding the various court cases seeking to frustrate the Mandatory bid, I am stretching out a hand of friendship to all stakeholders of Spring Bank to ensure that the integration of Spring Bank and Bank PHB is effected seamlessly in the new year."

Analysts are of the opinion that the takeover and the injection of a new management by Bank PHB is expected to bring a new lease of life into Spring Bank Plc, once a top ten bank at consolidation but currently in the low 20 ranking in the Nigerian banking industry.

Analysts at Renaissance Capital (Rencap), a leading emerging market Investment bank, in a detailed report, has hailed Bank PHB's acquisition of Spring Bank Plc. Rencap stated that this is not only a good deal for Bank PHB and Spring Bank's shareholders but also for customers, regulators, and employees.

Customers of both banks, according to the report will benefit from the emergent institution's expanded distribution network as "they will also have the additional comfort of banking with a much larger bank and extended product offerings."

The Rencap report notes that "regulators will welcome the consolidation of Spring Bank into a larger and well respected financial institution. As a member of the Bank PHB Group, the Spring Bank franchise will finally be able to focus on serving its customers and play its part in the development of Nigeria's banking universe."

Bank PHB closed its 2008 financial year with gross earnings at N87 billion, 141 percent higher than the gross earnings of N36 billion made in 2007. Profit before tax at N26 billion was 153 percent higher than the profit of N10 billion in the previous financial year against the estimated banking industry growth rate of 81 percent. Profit after tax at N19 billion was also more than twice the N7 billion posted last year.

Bank PHB's closing deposit base of N718 billion ranks it among the top five in deposits in the Nigerian banking industry with a growth rate of 133 percent over a deposit base of N306 billion in 2007 showing the steady increase in confidence of the banking public in the bank. The bank not only surpassed the industry growth rate in deposits of 86 percent in the period under review but now controls a healthy 6 percent of Nigerian banking industry deposit market. Bank PHB also closed with total assets and contingents of N1.15 trillion, 140 percent more than N479 billion in June 2007.