GTB Capital Hits N34bn
Latest merger form Astrabank
By Ayodele Aminu
Following the success of its recent N10.6 billion offer for subscription, Guaranty Trust Bank Plc may have become one of the most capitalized banks in the country as its capital base now stands at N34 billion.
This shows an increase of 36 percent over the N25 billion minimum capital prescribed for all banks in the country by Central Bank of Nigeria (CBN).
THISDAY gathered that the Guaranty Trust offer, which saw investors pumping in slightly over N21.2 billion into the bank, indicated that the offer was about 211 per cent subscripted.
Guaranty Trust Bank's recently audited 2004/2005 half-year financial results show that the its net assets (shareholders' funds) had grown to N12.6 billion as at August 31, 2004, a departure from the previous year's (2003/2004) financial ending February 29, 2004 when shareholders' funds stood at N11.6 billion.
GTB has over the years maintained a unique record of being the only Nigeria bank that pays dividends to shareholders twice a year. The bank recently retained its top industry triple A (Aaa) rating according to the latest Agusto & Co 2004 banking rating report.
Meanwhile, First Atlantic Bank Plc, Assurance Bank Plc, Manny Bank Plc and Guardian Express Plc that yesterday in Lagos signed a Memorandum of Understanding (MOU) to strengthen their position in the on going restructuring in the banking industry.
The results of the fusion of the four banks are the formation of a mega bank to be known as Astra Bank Plc.
Chairman, Guardian Express Bank, Ambassador Moses Ihonde who spoke on behalf of the four merging banks yesterday shortly after the signing of the MOU announced the new name (Astra Bank) for the emerging bank
To ensure the smooth take off of the new bank, he said that members of the consortium have set a three-month deadline to conclude the due diligence, and another three months to finalise other necessary procedures.
He said the decision of the consortium to merge was driven by a shared vision to form a world-class bank that will be a key player in all the major financial centers of the world.
"Our group has therefore set out to build a mega bank that will be among the 'top three banks in Nigeria within the next three years. Our vision is to create a strong international bank that will assist in bridging commercial transactions throughout Africa and beyond," he stated.
With a combined network of about 120 branches, total asset base of N17 billion, total deposit base of N48 billion and total shareholders' funds of N11 billion, the consortium, Ihonde explained, currently ranks among the top eight banks in the country.
"Our member banks have finalized arrangements to raise additional capital through a combination of rights issue and private placements. We are therefore confident that Astrabank will attain the minimum N25 billion capital requirement by March 2005," he assured.
Specifically, he said that as soon as the merger is consummated, the emerging bank intends to raise additional N15 billion through public offers in order to further increase the capital base to N40 billion.
"We will also pursue acquisition of some banks in the very immediate term to increase our business reach and capabilities; while membership of our consortium will remain open to other banks that may be willing to join, in so far as they share our vision and values and will further strengthen the consortium.
"Astrabank, with interest in the mortgage banking, insurance, asset management, stock broking and human capital development, will immediately be a one-stop financial services needs of Nigerians and members of the international community.
"With branches in all geopolitical zones of the country and presence in all the clearing centers our bank will immediately be seeking an appointment as a settlement bank from the Central Bank of Nigeria. Astrabank will then be positioned to provide the most efficient banking services in Nigeria through a combination of quality human capital, top of the range technology and adequate capital base," he stated.
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