Connect with us

E-Financial

Diamond Bank’s Managers to Lose Jobs over Access Bank Acquisition

Published

on

Spread the love

Diamond Bank Plc’s acquisition by Access Bank will come at a heavy cost to the Diamond Bank management team, especially on job security.

 

The management team is likely to be disbanded.

 

“You cannot have two managing directors of a bank, domestic and foreign operations and even chief financial officers in one bank. One has to give way and the Diamond Bank staff will be the casualties. The Diamond Bank management team should know that their jobs are gone,” Richard Obire, a former chief at Diamond Bank said.

 

According to him, Access Bank is a very ambitious lender and that is one of the characteristics of its management team.

 

Obire said: “They want to be big, and perhaps, the biggest bank in Nigeria and that was presented to them on a platter of gold by the Diamond Bank opportunity. Diamond Bank is now a small bank compared to its peers. It is now a tier-3 bank. I do not know the terms of the transaction but they will lose their brand name.

 

“It is the reality of business. Diamond Bank has such a brilliant brand name and customer base and these are what Access Bank will inherit. The name Diamond Bank is gone forever and the next will be integration, which will lead to exit of the bank’s management team.”

 

An industry source told The Nation that Access Bank’s decision to acquire Diamond followed a presentation made to it last week by its financial advisers in London, which showed huge strengths inherent in Diamond Bank.

 

The board of Diamond Bank Plc yesterday finally announced its merger with Access Bank Plc.

 

Both banks recently denied The Nation’s exclusive report of November 12 on any merger plans.

 

In the report, this paper exclusively said: “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 N150 billion.”

 

Uzoma Dozie, Diamond Bank’s chief executive officer said  the potential merger of the two banks would create Nigeria and Africa’s largest retail bank by customers.

 

He added that the transaction to be completed in the first half of 2019 was in the best interest of all stakeholders.

 

Dozie said the completion of the merger was subject to certain shareholder and regulatory approvals.

 

He said: “The proposed merger would involve Access Bank acquiring the entire issued share capital of Diamond Bank in exchange for a combination of cash and shares in Access Bank via a Scheme of Merger.

“Based on the agreement reached by the boards of the two financial institutions, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising N1 per share in cash.”

 

Dozie also said the transaction would include the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

 

“The offer represents a premium of 260 per cent to the closing market price of 87k per share of Diamond Bank on the Nigerian Stock Exchange (NSE) as of Dec. 13, 2018, the date of the final binding offer,” Dozie said.

 

He said the bank’s shares would be absorbed into Access Bank at the completion of the merger and Diamond Bank would cease to exist under Nigerian law.

 

“The current listing of Diamond Bank’s shares on the NSE and the listing of Diamond Bank’s global depositary receipts on the London Stock Exchange will be cancelled, upon the merger becoming effective.

 

“The board of Diamond Bank believes that the proposed combination of the two operations provides an exciting prospect for all stakeholders in both businesses,” he said.

 

Herbert Wigwe , Access Bank chief executive officer said: “Access Bank has a strong track record of acquisition and integration and has a clear growth strategy.

 

“Access Bank and Diamond Bank have complementary operations and similar values, and a merger with Diamond Bank with its leadership in digital and mobile-led retail banking.

 

“This could accelerate our strategy as a significant corporate and retail bank in Nigeria and a Pan-African financial services champion.”

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

WorldRemit, Paga Partner for Money Transfers to Nigeria

Published

on

Spread the love

WorldRemit, digital money transfer company, and Paga Nigeria have partnered to launch international money transfers to Nigeria.

 

Using the WorldRemit app or website, Nigerians in diaspora living in over 50 countries can now send money quickly and securely to over 11 million Paga users.

 

In a press statement, the company said that the new partnership considerably grows WorldRemit’s footprint in Nigeria, by expanding the company’s service offering from bank transfer and airtime top-up to include mobile money.

 

It stated that the introduction of international transfers to mobile-to-mobile accounts in Nigeria supported WorldRemit’s commitment to financial inclusion in the country, where nearly 40 per cent of the adults are unbanked.

 

According to the release, WorldRemit’s mobile-first, digital model saves customers time and money as they do not have to visit a bricks and mortar agent to send money home.

 

“International transfers to Paga mobile money wallets via WorldRemit are instant. Recipients can then transfer funds from their Paga wallets to other users of Paga wallets or bank accounts, top-up mobile airtime, and pay for bills and groceries at shops and businesses that accept Paga payments. Customers can also withdraw money as cash at Paga agent locations, perform cardless withdrawals at select ATMs or store their funds in their Paga accounts.”

 

Since its launch in 2009, Paga has been recognised by the World Bank and International Monetary Fund as the fastest-growing Agent Network for its role in driving financial inclusion in Nigeria.

 

Paga is the country’s widest reaching mobile money company, with over 14,000 agents across nearly 36 states, and is committed to making it easy for people to send and receive money digitally.

 

Last year, after a $10 million raise, Paga announced plans to expand into new global territories and introduce new partnerships and products to the market.

 

Speaking, Tamer El-Emary, chief commercial officer at WorldRemit, said, “Paga and WorldRemit share a commitment to making life easier for Nigerians sending and receiving money. Our partnership represents a new milestone for WorldRemit as we expand our service offering in Nigeria to include mobile money, a technology that has been transformational for communities across Africa.”

 

He noted that “Our partnership with Paga supports financial inclusion initiatives in Nigeria by introducing a new and convenient way for people to receive money from abroad and directly into their mobile money accounts.”

 

Tayo Oviosu, founder and CEO of Paga, said, “At Paga, we are committed to making money transfers seamless and convenient.”

 

He stated that “Our partnership with WorldRemit is a further example of our commitment to making it easy to send and receive money digitally. “Many Nigerians in the diaspora support members of their family living in Nigeria, and often times these family members may be depending on that stipend to survive.

 

According to Oviosu, using WorldRemit’s website, Nigerians in the diaspora can send money home to family and friends using the mobile phone number of the recipient money will be instantly credited to a Paga wallet for the recipient and available for immediate use on Paga.

 

This is just one of the many ways we are making life possible for Nigerians at home and abroad.

 

Continue Reading

E-Financial

UBA Hits N28.7Bn Profit in First 3 Months of 2019

Published

on

Spread the love

United Bank for Africa (UBA) Plc, Pan-African lender, has announced making a total of N28.7 billion as profit in the first three months of 2019. This figure is higher than the N23.7 billion profit after tax netted by the company in the corresponding period of 2018.

 

UBA, which recently commenced full banking operations in the United Kingdom, disclosed further that it raked N98.6 billion as interest income against N90.3 billion generated a year ago, while the interest expense increased to N40.5 billion from N36.8 billion.

 

According to the financial statements of the bank released to the Nigerian Stock Exchange (NSE) , a total of N24.2 billion was realised from fees and commission income against N20 billion in Q1 2018, while the fees and commission expense rose to N7.5 billion from N5 billion.

 

However, the net trading and foreign exchange income dropped in Q1 2019 to N6.1 billion from N6.7 billion, but the operating income jumped to N83.7 billion from N77.6 billion.

 

In the period under review, the profit before tax appreciated to N30.2 billion from N26.6 billion, while the earnings per share (EPS) rose to 82 kobo from 67 kobo.

Continue Reading

E-Financial

PoS Innovation Summit to Drive Agency Banking

Published

on

Spread the love

The Fintech industry in Nigeria is warming up for yet another round of electrifying discourses at the PoS Innovation Summit scheduled to hold on Tuesday, May 7, 2019 at The Wheatbaker, Ikoyi.

The event will draw delegates from the Central Bank of Nigeria (CBN), Nigeria Interbank Settlement System (NIBSS), Banks, players in the Fintech industry and other key stakeholders.

Convened by Nigeria’s foremost Fintech company, Global Accelerex Limited, the PoS Innovation Summit is a platform that brings together all stakeholders in the financial technology ecosystem to deliberate and foster greater understanding of the value chain in a bid to improve service delivery in the e-payment sector. These discussions are aimed at achieving the financial inclusion goals of the Federal Government and attaining the Financial System Strategy (FSS) 2020 Plan of the Central Bank of Nigeria.

This edition of the summit, rightly themed, “Agent Banking to Reach the Last Mile”, will focus on the delivery of convenient, accessible and cost-effective financial services to the underserved and unbanked in Nigeria. The objective will be to further improve financial inclusion through the agency banking system.

The Special Guest of Honour at the event is Aishah Ahmad, Deputy Governor, Financial System Stability, Central Bank of Nigeria. Patrick Akinwutan, the Managing Director of Ecobank Nigeria; Ronke Kuye, Managing Director of SANEF; Jacqueline Jumah, the Managing Director of Intermarc Consulting; and Tunde Ogungbade, Managing Director of Global Accelerex; will be keynote speakers at the forum.

To deepen understanding of how agent banking really works, a live demonstration of agency banking, using the Accelerex Agent Network Platform, will also occur during the summit.

A considerable number of Nigerians have embraced the deposit, transfer and withdrawal of money through agent banking operators both in urban and rural areas. As this trend evolves, creativity and innovation will be major contributors to sustainable growth, especially regarding new market segments. This is where the overarching need for a summit such as this becomes very instructive.

The event, which has held since 2017, will also have in attendance notable stakeholders including Payment Terminal Service Providers (PTSPs), representatives of banks, representatives of the Central Bank of Nigeria and NIBSS, Agent Network Management Organisations/Super Agents, representatives of Microfinance Banks, representatives of Fintech Companies, Merchants, Payment Processors, among others.

The PoS Innovation Summit is renowned for its invaluable contributions to innovation and improvement of efficiency in the nation’s fast-growing e-payment industry through insights and shared experiences aptly analysed by seasoned speakers and discussed by experienced panelists.

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.