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Friday, July 22, 2011

AMCON, Access Bank To Buy Intercontinental Bank Plc with N600b

Following efforts to meet the September deadline for recapitalisation  by all distressed banks, Asset Management Corporation of Nigeria (AMCON) and Access Bank Plc are to inject a total of N600 billion into Intercontinental Bank Plc.

In view of the recapitalisation process, Intercontinental Bank Plc has signed a Memorandum of Understanding (MoU) with Access Bank Plc, to create one of Africa’s largest financial institutions.

With the transaction, Access Bank would have the highest stake in Intercontinental Bank Plc.

The general managing director of Intercontinental Bank Plc, Mahmud Alabi, who disclosed this yesterday in Abuja, said the bank would bounce back in the next two months.

Alabi, during the bank’s ‘I- Save I- Win’ promo’s raffle draw to reward customers in the North Central zone and the Federal Capital Territory, yesterday in Abuja, said the bank had recorded tremendous losses in recent times, stating that it was on course to return the bank into a fully recapitalised one.

Giving a breakdown on the bank’s position over the last two years, he said that the bank had a non-performing loan of N158 billion, which dropped by 25 per cent to N119 billion in 2010.

Stating that the bank’s losses had presently drastically reduced, he gave his assurance on the ongoing efforts to bring the bank back on stream.

“The bank recorded a historical loss of N238 billion in 2009, but with hard work and determination, we changed the picture from a record of loss to a record profit of N65 billion. This is a reflection of the journey in the last two years.

“On the recapitalisation process, we have stabilised the bank and I can tell you that in the next two months, the bank will be fully recapitalised and will bring in an injection of N600 billion between AMCON and Access Bank Plc, as branch networks would increase to almost 500.

“AMCON will inject enough to bring the net assets to zero. The losses we incurred made our net assets to be negative. Our desire is to ensure that our customers continue to enjoy good banking services. Recapitalisation will ensure continuity of business,” he said.

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