After months of uncertainty and virtually no negotiations Habib Nigeria Bank Plc and Platinum Bank Plc agreed to merge and form Platinum Habib Bank Nigeria Plc in 2006. This bank came out from nowhere and had little chance of makes waves. As at the time of formation, it was ranked 17th amongst the 25 banks that survived the government forced consolidation in the Banking industry.
Within 12months the name changed to BankPHB, and with some aggressive marketing after some unexplainable decisions on the issues of staff and compensation, the bank moved up the ladder to be ranked 10th. This was a astonishing and it became the envy of even bigger banks. The phenomenal growth caused some disquieten in the industry as competitors were not sure what philosophy was drive such a growth. The trajectory was quite clear for everyone to see. Most bankers wanted to wear the "dash of yellow" pin on the suits, and flaunt the bank's ID card. This was helped alot by the array of television adverts that were unknown in this part of the world.
Within no time the bank was ranked amongst the top 3 in public sector business having won the FAAC and JAAC accounts of more than 14 states in the country. The top bank in collections for FIRS and NPA, the best in terms of retail products and services etc.
Little wonder, the bank was named the "most innovative bank" by the press and it indeed won the award.
Suceess managment became a challenge to the managers of the bank and all caution was thrown to winds especially after a successful IPO. Risk assets were being created with reckless abandon, credit policies and guidelines were waived or at best deferred. The bank played heavily in speculating markets like Oil trading and the capital market. New players were employed and the old relaible, loyal and sincere ones were relegated. The new ones were considered whizkids, and their target was top 5 bank ny 2010.
Suddenly, the sub prime crisis bursted in the US, consumed Europe and Asia (to some extent) while Nigerian banks were insolated by the then CBN governor, Charles Soludo. The protection was to allow the government come with a remedial policy without necessarily causing panic in the economy I guess. Instead of the banks to develop aggressive recovery methods and loan workout strategies, the managers continued to live in self deceit and even hid the looming danger from their employees.
Enter Sunusi Lamido Sunusi (SLS). A risk manager that was just appointed the Managing Director of Nigeria's foremost and oldest bank-First Bank of Nigeria Plc has being moved up as Governor of Central Bank of Nigeria. His appointment was not without controversy at all. First, a school of thought was campaigning for the retention of Charles Soludo as the CBN gov for continuity, others were against SLS for political reasons. One reason for him to be dropped by the late President Yar'adua was that the then Minsiter of Finance and Minster of National were both from Kano State, same state with SLS. This effectively means that the economic policies of the country can be decided in the place of His Royal Highness, Emir of Kano, Ado Bayero. President Yar'adua did not buy any of those reasons and stuck to his gun of appointing SLS. It was widely believed that the MD/owners of some of the banks were those against his appointment and had mustered alot of money to carry out the campaign in both the media and National Assembly.
On resumption of duties, he caused a detailed audit of all banks and 8 came out very bad, 3 were marginally in trouble while the others got away with a slap on the wrist. Wema Bank, Unity Bank and ETB were asked to go and seek more capital while the other 8 had the managements sacked and replaced.
After months of intense negotiations on the recapitalisation process of BankPHB, decisions were hardly made and the FG was out to avoid a systemic damage to the industry.
BankPHB lost it banking licence on August 5, 2011 after close of banking hours. Most staff only became aware of this development after getting home, either through friends that heard the news or through the news themselves. Keystone Bank Limited (KBL) was licenced and it inherited the staff and customers of BankPHB along with its assets and liability but not with it sharehloders.
The dash of yellow is gone, the price of greed is paid and the prayers of many have being answered. Who are the losers? The shareholders, those that innocently bought into the bank's IPO, those that initiated the bank, those that were brought into the bank through a merger not well thoughtout and the management of the bank. The winners are Nigerian banking public, loyal staff of the bank, AMCON (new owner) that saw the potential and goodwill of the bank and indeed SLS for initiating and championing the reforms in the industry.
The story of BankPHB should be a case study in business schools and it is a good example of how not to mis manage an acceptable brand, how not to deviate from original plans, how not to be too greedy and how to appreciate those who will look you in the eyes and tell you the home truth.
Adieu, Ciao, goodbye, Good, Better, BankPHB!
