Lagos, May 5, 2011 – The Boards of Directors of First City Monument Bank Plc (“FCMB”) and FinBank Plc (“FinBank”) have executed a Memorandum of Understanding (“MoU”) for the re-capitalisation of FinBank and the combination of both banks. MoU execution followed a competitive process supervised and approved by the Board of Directors of FinBank. The proposed transaction also has the full approval of the Board of Directors of FCMB. Transaction completion is subject to the approval of the Central Bank of Nigeria, other regulatory agencies, the Federal High Court and the shareholders of both banks.
The combined bank would be a significant player in the Nigerian Banking industry with substantial enhancement to share of industry assets and revenues. The bank will offer a comprehensive suite of banking services, drawing from both FCMB’s capabilities in investment banking, corporate banking and retail finance, and FinBank’s complementary capabilities in commercial and retail banking. This combination will be underpinned by a strong risk management and corporate governance regime, and will result in a well capitalised, stable and strong banking platform benefiting customers and shareholders alike. In addition, the combination should enable the realisation of synergies which will further drive the profitability of the bank. The integration process will benefit from FCMB’s experience in successfully and swiftly integrating several banks and delivering improved returns to shareholders of both organisations.
FCMB’s GMD/CEO, Ladi Balogun said: “This transaction is consistent with FCMB’s strategic objectives and has a compelling rationale from a risk and financial perspective. Strategically, it allows us strengthen our commercial banking business and develop a more robust platform for retail growth. FinBank also enhances our market reach through additional capabilities such as its remarkably effective mobile and electronic banking platforms. Furthermore, given FCMB’s highly capitalised balance sheet, it provides further opportunities to leverage our capital in a highly efficient manner to the benefit of the shareholders of both organisations.”
About First City Monument Bank Plc (FCMB):
FCMB is a predominantly wholesale banking group with a growing niche retail banking franchise, headquartered in Lagos. From its early origins in investment banking, FCMB has evolved into one of Nigeria’s leading comprehensive financial services institutions, with subsidiaries that are market leaders in their respective segments. FCMB has 133 branches across every state in Nigeria, and is present in the United Kingdom (FSA-authorised Investment Banking subsidiary) and South Africa (Representative Office).