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.... ....   Home  |  Cover Stories  |  National Newsreel  |  Politics  |  Business  |  Sports  |  World  | Contact  | Advert Rates  Towards a better life for the people Search The Archives   Cover Stories National News South West Niger Delta South East North Politics Business Sports World Viewpoints Features   COVER STORIES Intercontinental Bank, 3 others sign MOU on merger By Babajide Komolafe Friday, September 17, 2004 LAGOS—The on-going reforms in the banking industry got a fresh boost yesterday when Intercontinental Bank Plc, Equity  Bank Plc, Gateway Bank Plc and Global Bank Plc signed a Memorandum of Understanding (MOU) to merge. The group is  targeting a N40 billion capital base, N15 billion more than the prescribed N25 billion. Vice-Chairman/Chief Executive, Intercontinental Bank Plc, Dr. Erastus Akingbola, briefing reporters on the occasion said the  four banks, “which hitherto operated seperately but as members of a group of financial institutions with inter-locking ownership,  identical business models and group operational synergy, have decided to pursue a merger into a single entity subject to  obtaining all necessary approvals. “The MOU today (yesterday) signals the commencement of the implementation of the consolidation process. We shall formally  notify the regulatory authorities any moment from  now. While we wait for approval, we shall, however, continue to pursue the  various business expansion plans that will ensure the realisation of the full potentials of the envisaged new mega bank while  perfecting the existing group synergy.” The four banks belong to the Intercontinental Bank group which has a total asset base  of N132.0 billion, shareholders funds of  N16.6 billion, and total deposit in excess of N103 billion. Dr. Akingbola, however, said the capital base of the new bank would not be less than N40 billion, adding that with the number  of consolidation expected in the industry, N25 billion capital base was no longer something to boast about. Projections for the  new bank include total asset base of N200 billion, total deposit of N160 billion, gross earning of N45 billion, pre-tax profit of  N10 billion and 200 branches. On the likelihood of staff retrenchment resulting from the the merger, Dr. Akingbo said: “We do not envisage that any of our staff  will lose his job because of this merger. If anybody is going to leave, they must have left before the merger, on their own, and it  must be as a result of gross incompentence. We definately need more hands. Some weeks ago we still conducted aptitude test in  the bank.”   Home  |  Cover Stories  |  National Newsreel  |  Politics  |  Business  |  Sports  |  World  | Contact  | Advert Rates © 1998- 2004. Vanguard Media Ltd.

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