http://thenationonlineng.net/talks-on-for-access-bank-to-acquire-diamond-bank/

By Simeon Ebulu, Group Business Editor November 12, 2018

Access Bank is set to add Diamond Bank’s portfolio to its assets in the next few months, The Nation has learnt.

Talks on the acquisition are on, according to sources, who said the fusion is set for the first quarter of next year.

It was gathered that both financial institutions have reached an agreement in broad terms on the acquisition. What is left is the valuation of assets, with a view to determining the level of compensation and systems’ integration, the sources said, pleading not to be named because they are not allowed to talk to the media on the matter.

It was learnt that the development leading to the impending acquisition was triggered by Diamond Bank directors who approached Access Bank for intervention in a bid to stave off a possible regulatory intervention that could lead to the withdrawal of the lender’s operating licence in the light of the bank’s depleting capital adequacy ratio on account of a huge Non Performing Loans (NPLs) portfolio put at over N150billion.

The Nation gathered that Access Bank directors examined the proposal and, after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.

“It’s a complete acquisition and not a merger,” a source, who asked not to be identified, but who is familiar with the transaction, said, adding that one of the major considerations that swayed Access Bank’s directors in accepting the offer was the large branch network of the lender. “ It’s burgeoning NPLs, however, was of serious concern to Access Bank and almost becoming a disincentive, but it has been addressed,” the source added.

It was also gathered that the CBN is well acquainted with the development. The regulator’s acquiescence to the deal was informed by the recent event that led to the liquidation of Skye Bank, and the apex bank not being disposed to following that route because of the huge cost implication that a bailout of Diamond Bank might require, encouraged the discussions, “and the regulator is pleased with the level of discussions so far.”

“ The CBN encouraged the ongoing arrangement, given the fate that befell the defunct Skye Bank a few months ago. The apex bank gave its consent and approval for the actualisation of the marriage. ”

The Nation learnt that the regulator’s un-alloyed support for the emerging entity followed its unpreparedness to commit any further huge funds for the rescue of any wavering bank.

Bloomberg reported that a major investor was in the process of injecting funds into Diamond Bank on condition that the CEO, Uzoma Dozie, exits his position. The report attributed to the Chairman, Seyi Bickersteth, has since been denied by the bank.

Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 percent of outstanding loans. The company’s ratio stood at 16.3 percent at the end of September, the lender has said.

The bank cut its full-year profit forecast by more than half on Tuesday after income from operations declined. It now expects profit before tax to reach 3.8 billion naira ($10.4 million), down from a previous target of 8 billion naira.

The shares rose 2.5 percent on Wednesday, trading at 1.21 naira at the close in Lagos. The stock is down 19 percent this year, compared with a 12 percent fall on the NSE Banking 10 Index.

Diamond Bank, in a statement, said contrary to media articles, “the Board wish to clarify that the company has not received an offer from an investor to inject cash. Further to the Company’s announcement of 26 October 2018, Diamond Bank and its Board of Directors continue to review all strategic options on a regular basis. Diamond Bank would also like to clarify it enjoys the support of its major shareholders, including The Carlyle Group and Kunoch Holdings who are, as ever, working in cooperation with the Board and management as appropriate to ensure the successful operation of its business in Africa’s most dynamic banking market.

“Further to the announcement of 24 October 2018, Diamond Bank is in active discussions with regards to the appointment of new non-executive directors to the Board and, subject to CBN approval, these will be announced in due course.” “Diamond Bank’s recent Third Quarter results published on October 26, 2018 show the business continues to execute its clearly articulated tech-led retail strategy despite headwinds in the Nigerian economy,” the bank stated.

Lalasticlala
Mynd44
OAM4J

Na wa o. I could have swore diamond bank is doing well.

Buhari why? See the number of banks you have liquidated. Can't count the number of friends that lost their jobs in the banking sector alone since you became President. You can still leave that office honorably or be disgraced next year.

Good. Another one about to bite the dust. TSA and BVN is really exposing these Nigerian banks. Once upon a time, they were busy giving huge loans to characters like Ben Bruce and other Nigerian billionaires without collateral. After all, several government agencies had multiple bank accounts with them, so no shaking.

Sponsoring politicians was the order of the day as against giving loans to promising small and medium scale businesses whom they'll demand your left kidney and grandfather's balls as collateral in return.

Now, no more excess and free government money, Ben Bruce and co can't repay their bank loans, they are all running around like headless chickens.

After Skye bank, who would have believed Diamond bank is not stable?

If access buy them I go change bank be that, too many complaints from Access customers

Not Diamond Bank!
Access bank can’t afford to acquire DBN

Let this not be true o

See signature for mtn data promo

DWJOBScom:
Not Diamond Bank!
Access bank can’t afford to acquire DBN

Yinmu. Didn't you read where it was stated that Diamond officials were the ones that approached Access bank, cap in hand?

If dead Eco bank could acquire the almighty Oceanic bank, anything is possible.

Na only Pascal Dozie I dey pity. Watching his son run down an empire he built.

Aquariann:
Good. Another one about to bite the dust. TSA and BVN is really exposing these Nigerian banks. Once upon a time, they were busy giving huge loans to characters like Ben Bruce and other Nigerian billionaires without collateral. After all, several government agencies had multiple bank accounts with them, so no shaking.

Sponsoring politicians was the order of the day as against giving loans to promising small and medium scale businesses whom they'll demand your left kidney and grandfather's balls as collateral in return.

Now, no more excess and free government money, Ben Bruce and co can't repay their bank loans, they are all running around like headless chickens.

After Skye bank, who would have believed Diamond bank is not stable?

So once, these unstable banks are swallowed up with the corresponding lose in jobs, the remaining banks will start offering loans to SMEs?
You think buhari can force them to offer loans to SMEs as opposed to creating policies that will encourage such.

Continue. All of us dey here dey look.

RTSC:

So once, these unstable banks are swallowed up with the corresponding lose in jobs, the remaining banks will start offering loans to SMEs?
You think buhari can force them to offer loans to SMEs as opposed to creating policies that will encourage such.

Continue. All of us dey here dey look.

Or you'll rather they go the way of societal general bank and co so people can wake up one day and hear that they've lost all their life savings?

Don't blame Buhari, blame the banks' management who were busy throwing investors money about like father Christmas rather than engage in proper investment banking. Their woes didn't start under Buhari.

Ps, can you show me a link where employees of the recently acquired Skye bank lost their jobs after being acquired by Polaris bank.

Mheeen! Expect more under-functioning banks to be acquired in coming days. Cbn tighter new policies seems to be eating them up. For micro finance banks they will fold up patapata. All thanks to Cbn.

Quality flash drives. Check here. https://www.nairaland.com/4804919/quality-8gb-atm-credit-card

Hmm so diamond was weak




GT and zenith for life

Chai! What about Diamond bank salary for life? No wonder, it was too good to be true.

Diamond bank is broke

In business, I have learnt that nothing is impossible..

That is why you should never feel too comfortable with your place of work...until you have gotten a dependable alternative sources of income.

Do you want to learn other streams of income?

Whatsapp... 0.9.0.9.3.3.5.2.0.0.3

Mr.crayfish

Diamond tribalistic bank

Wow what a thwart

profland:
Not true

bros, one of their staff once revealed to me that the bank is broke cos I was thinking of proposing a product to them...

Buhari don finished them.

Access is the best bank in Nigeria
>>>

Okay

I trust access bank.

Maybe the MTN saga is taking a huge toll on Diamond bank..


Another thousands ready for the Labour market, Access bank we know will weed all Diamond bank staff out gradually not known to the press, first through closure of branches and then discrimination. Moreover with access if at 40 you are not gunning for manager despite no promotion, your exit door is open already.

It happened with defunct Intercontinental bank..

DWJOBScom:
Not Diamond Bank!
Access bank can’t afford to acquire DBN

Seriously?

---------------

Life is meant for DOERS.....Start something today....

Diamond bank customers


Oya oya.. Dial *894*0# or download the firstmobile app to open an account with first bank. Since 1894

oyetunder:
what about Diamond bank salary for life?

Of course that will only apply if the bank still has a 'life'. How can you expect to receive a salary from an entity that has ceased to exist?

which type of thing is dis one,if access bank buy Daimond bank,I no use Daimond bank be dat again.acess bank no be bank at all...

Beer parlour gist

Aquariann:


Yinmu. Didn't you read where it was stated that Diamond officials were the ones that approached Access bank, cap in hand?

If dead Eco bank could acquire the almighty Oceanic bank, anything is possible.

Na only Pascal Dozie I dey pity. Watching his son run down an empire he built.

Instead of reading through annual reports of these organisations, Nigerians would rather sit back and rely on hearsays and public opinion. It's not by name or coziness of banking halls o.
I'm so not surprised seeing this report.