ACCESS TAKES OVER OWNERSHIP OF DIAMOND BANK

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Access Bank has lastly acquired Diamond Bank, TheCable can report.

According to insiders, the official announcement of the transaction will probably be made in the midst of the week by the Central Bank of Nigeria (CBN).

The acquisition was midwifed by the CBN in a bid to additional consolidate the banking trade, sources knowledgeable TheCable.

Last week, Diamond Bank introduced its choice to drop its worldwide working licence to deal with nationwide operations following capitalisation points.

A Diamond Bank official who spoke to TheCable mentioned there was no have to panic, and all accounts with the financial institution stays in protected palms.

Uzoma Dozie, the financial institution’s chief govt officer, confirmed the event in an announcement launched on Friday.

“With this approval, the bank will cease to operate as an international bank,” Dozie had mentioned.

“The re-licensing as a nationwide financial institution helps Diamond Bank’s goal of streamlining its operations to focus sources on the numerous alternatives within the Nigerian retail banking market, and the financial system as a complete.

“The transfer follows Diamond Bank’s choice to promote its worldwide operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is at the moment in its last levels.

“The change to national bank status also enables the bank to maintain a lower minimum capital requirement of 10 per cent, as against 15 per cent required for international banks.”

The financial institution recorded its worst month on file in November with share plunging to 0.61okay per unit on November 30, 2018.
Diamond Bank Q3 2018 report had confirmed that the financial institution was beneath some monetary stress with revenue after tax falling from N3.9 billion in 2017 to N1.6 billion.

This impacted the financial institution’s earnings per share, which additionally dropped sharply from N17 in 2017 to N7 in 2018.

As at Wednesday, the financial institution had a share worth of 0.95 per unit, and a market cap of N22 billion.

-TheCable

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