Posted by Sunkanmi Oriyomi on
Three banks - Platinum Bank Limited, FSB International Bank Plc, and Inland Bank Plc - have signed a Memorandum of Understanding to fuse into one entity.
Three banks - Platinum Bank Limited, FSB International Bank Plc, and Inland Bank Plc - have signed a Memorandum of Understanding to fuse into one entity.
The merging banks, in a statement on Sunday, disclosed that the group had filed for pre-merger consent with the Central Bank of Nigeria.
The CBN recently disclosed that 18 bank groups had been issued pre-merger consents to fuse into bigger banks, in line with the ongoing consolidation exercise.
CBN had on July 6, 2004 directed banks to shore up their capital base to a minimum of N25billion, a development that has resulted in a rash of mergers in the banking industry.
Some of the groups that recently emerged include the combinations of Investment Banking and Trust Company and Bond Bank; Chartered Bank, Ecobank and Regent Bank; Equitorial Trust Bank and Devcom Bank; and Union Bank of Nigeria's acquisition of Broad Bank of Nigeria, Gulf Bank of Nigeria, Universal Trust Bank and Union Merchant Bank, among others.
According to the statement signed by Platinum's Head of Corporate Communications, Mr. Charles Odibo, the envisaged group currently has a combined asset base in excess of N160billion, deposit base of N97billion and about 120 on-line, real-time branches, with over two million customers nationwide.
The statement added, 'With a combined shareholders' funds of N22billion, the merging banks recently embarked on private placement and public offer to jerk up their capital base in line with the CBN's minimum N25billion requirement before August 2005.
'The combination meets the strategic intent of the merging banks to form a full service national bank in a reformed banking sector to enable it compete effectively in the new dispensation."
Odibo said that with the fusion, the emerging bank 'will maximise synergies, create a well-focused model bank with a wide branch network covering all the geopolitical zones; become a significant player with a dominant market share and conduct business operations in accordance with global best practices."
He stated that the merging entities were committed to quick deployment of world-class information technology to support efficient customer service delivery.
'The three banks have assured their staff, customers, shareholders, and the banking public that the goals they are committed to achieving at the commencement of the ongoing bank consolidation have been largely met," he noted.
The Punch, Monday, June 06, 2005