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Banks in Fresh Merger/Acquisition Moves

NIGERIA’S banking sector may witness another round of mergers and acquisitions in 2016 if recent trends in the industry are anything to go by.

The Managing Director/CEO, Sterling Bank Plc, Yemi Adeola, who disclosed this in Lagos last weekend at the annual press conference of the bank, said there are possibilities of reduction in the number of banks in the country from 2016 because there are moves suggesting that trend. The bank chief said two international banks were discussing with local lenders on possible acquisition, adding that if the opportunity arises for banks to pursue further consolidation, Nigeria could see two or three of such action in the new year. According to him, one or two international banks are interested in pursuing acquisitions in Nigeria and they are having discussions already.
Adeola, who did not name the banks involved, said: “No thanks to the shock created in Deposit Money Banks (DMBs) assets and balance sheet sizes in the face of declining oil prices.”
Crude oil prices have fallen to as low as $37.11 per barrel from over $110 per barrel a year ago and has adversely affected banks’ oil assets, which have forced the level of non-performing loans in the sector to rise.

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