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Astrabank targets N50b
capital base by March 2005
By Mojeed Jamiu
and Esan Sunday, Lagos
The nationwide strike
notwithstanding, four banks; First Atlantic Bank, Guardian Express Bank,
Assurance Bank and Manny Bank on Monday signed a Memorandum of
Understanding (MOU) to be the third group of banks to openly do so in the
last two months.
The banks, which would now be
known as Astrabank has total asset base of N71 billion, shareholders funds
of N11 billion and a deposit base of N48 billion. The combined branches of
the bank also stood at 120.
The Chairman of Guardian
Express Bank, Ambassador Moses Ihonde who spoke on behalf of the group
said the decision of the member banks 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 centres of the world.
He said: �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.�
Noting that the consortium
currently ranks among the top eight banks in the country, he said the
member banks by March 2005 would have realized N25 billion capital
base.
While stating that member
banks have also finalised arrangements to raise additional N15 billion
through public offers to further increase the capital base of the bank to
N40 billion, he said ultimately the bank is targeting N50 billion capital
base by the year 2006.
Explaining further, he said:
�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, according to him,
with interest in mortgage banking, insurance, asset management, stock
broking and human capital development, would immediately be a one stop
financial supermarket meeting the financial services needs of Nigerians
and members of the international community.
He said though the group has
notified the Central Bank of Nigeria of its intention to merge, it would
immediately visit the Nigerian Stock Exchange (NSE), the Securities and
Exchange Commission (SEC) and other regulatory bodies to explain in detail
the group�s merger proposal.
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