Home Tech News Access Bank Acquires Diamond Bank to Become Nigeria’s largest banking institution

Access Bank Acquires Diamond Bank to Become Nigeria’s largest banking institution

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Access bank has finally announced its acquisition over diamond bank PLC to create Nigeria’s largest banking institution will launch a subordinated rights issue of about $200m to keep its capital well above regulatory requirements, bankers working on the deal told the Financial Times.

The acquisition was midwifed by the CBN in a bid to further consolidate the banking industry, sources informed.

Last week, Diamond Bank announced its decision to drop its international operating licence to focus on national operations following capitalisation issues. Uzoma Dozie, the bank’s Chief Executive Officer, confirmed the development in a statement released on Friday.

Dozie had said: “With this approval, the bank will cease to operate as an international bank. “The re-licensing as a national bank supports Diamond Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy as a whole.

The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stages.”

Diamond Bank Q3 2018 report had showed that the bank was under some financial stress with profit after tax falling from N3.9 billion in 2017 to N1.6 billion.

“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 bank recorded its worst month on record in November with share plunging to 0.61k per unit on November 30, 2018.


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