Regent Bank Assures Stakeholders on Recapitalisation
Stories by Uche Obike
The Chairman of Regent Bank Plc, Mr. Bhagwan Mahtani, has assured shareholders, customers and other stakeholders not to loose sleep over the N25 billion capitalisation, saying plans are on to meet the December 31, 2005 deadline.
Mahtani gave this assurance at the 4th Annual General Meeting of the bank held last Thursday in Lagos. According to him, with the support of the bank's foreign investors, Regent Bank could have gone it alone.
"But we want to go along with another bank with which Regent Bank has similar shareholders and merge to enjoy the synergies there from to be a mega bank" he said.
The Chairman said that the merge talks were already advanced stage and the memorandum of understanding would soon be signed.
"I want to say that shareholders, customers and other stakeholders should be rest assured that Regent Bank will come out of the consolidation a stronger and more virile bank", he said.
Reviewing the performance of the bank that got quoted on the Nigerian Stock Exchange last year, Mahtani said that but for a provision of N254 million that was made for risk assets, the bank recorded improved performances for the year ended March 31, 2004.
Gross earnings rose from N886 million in 2003 to N1.11 billion in 2004, shareholders funds grew from Nl.123 billion to Nl.354 billion. However, a loss of N245 million was posted as against a profit of N147 million in 2003.
"This was because our bank had to make exceptional provision for default in payment of the inter-bank placements with Societe Generale Bank and African Express Bank", he said.
The Managing Director/Chief Executive of the bank, Chief Gbolahan Folayan said although the N254 million would be recovered and become profit later, he disclosed that the management had taken necessary precautions to avoid a repeat of the incidence.
He said the future was bright for the four-year old bank. "We acquired stockbroking firm, an insurance brokerage company and also invested in an Information Technology solution providing company last year. The impact of these subsidiaries would soon impact on the income of the bank, which will translate into good returns to investors" he said.
The bank was incorporated as a private limited liability company on April 7, 2000 with a paid-up capital of N1 billion. It obtained license to operate as a commercial bank on July 11, 2000 and commenced business on September 18, 2000. The bank converted to a public limited company on March 13, 2002 preparatory to having its shares quoted on the stock exchange. Its name was consequently changed from Regent Bank Limited to Regent Bank Plc.
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