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Wema Bank, Leadbank,
Fountain consolidate today
By Mojeed
Jamiu
Finance
Editor
Another
memorandum of understanding (MOU) in the financial system that is expected
to be the fifth will be signed in Lagos today amongst Wema Bank Plc,
Leadbank Limited and Fountain Trust Bank Limited.
The
chairmen, managing directors and chief executives of the three banks are
signing the MOU after series of meetings among the three parties in the
consolidation talks in the last few weeks.
It is,
however, not clear if the MOU is for a merger and or acquisition between
Wema Bank and the other banks. This uncertainty is because Wema Bank is
coming into the arrangement with a capitalisation of N8.1 billion compared
with less than N3 billion each from both Leadbank and Fountain
Trust.
The
consolidation today is following in the heels of four others that started
in the banking industry on September 3 by the First Consolidated Bank of
Nigeria comprising Allstates Trust Bank, Gulf Bank, Hallmark Bank, Lion
Bank and Universal Trust Bank.
Prudent
Bank, Magnum Trust Bank, EIB International Bank, NBM Bank and Trust Bank
was the latest to join the consolidation train as they signed a MOU to
form Sterling Bank with a consolidated capitalisation of about N15
billion.
In the same
vein, four banks also came together when they signed an MOU to form one
big bank under the Intercontinental Group; they are Intercontinental Bank
Plc, Gateway Bank Plc, Global Bank Plc and Equity Bank Plc.
In the same
vein, four banks had a fortnight ago defied the strike called by the
Nigeria Labour Congress to sign a MOU on consolidation under the name
Astrabank. They are First Atlantic Bank, Guardian Express Bank, Manny Bank
and Assurance Bank.
The new
bank with a consolidated capital base of N11 billion plans to hit the N50
billion mark by March as well as push for a settlement bank
status.
For now,
those sure of the mega bank status are First Bank, Union Bank, UBA, Zenith
Bank, Guaranty Trust and Standard Trust. They are also expectedly the
first choice for settlement banking.
As events
are unfolding in the nation�s financial market, there are also indications
that the management of Diamond Bank, Citizens International Bank and ACB
International Bank are rounding off a merger talk which has been on since
the apex bank�s directive was made public.
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