May 6, 2011
First City Monument Bank (FCMB) Plc has notified The Exchange that its’ directors and that of FinBank Plc have executed a Memorandum of Understanding for the merger of both Banks in other to recapitalize FinBank Plc. 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 retail banking.
The combination according to FCMB Plc will be underpinned by a strong risk management and corporate governance regime, and will result in a well capitalized, stable and strong banking platform benefiting customers and shareholders alike. The combination in addition will enable the realization 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 organizations.