Just wanted to share this.

Nigeria M&A: First City Monument, Finbank merge
http://www.vrl-financial-news.com/retail-banking/retail-banker-intl/issues/rbi-2011/rbi-651-652/nigeria-ma-first-city-monume.aspx

By Duygu Tavan
06 May 2011
Nigeria-based First City Monument Bank (FCMB) is going to undertake recapitalisation of and merge with national bailed-out rival Finbank.

The merger has now been confirmed by FCMB, following news in January FCMB had made a bid for 182-branch strong Finbank.

The merger between FCMB, which has 133 branches across Nigeria, and Finbank is part of FCMB’s ambitions to grow its retail banking franchise as the bank operates predominantly as a wholesale bank.

FCMB said that the merger would create a “significant player in the Nigerian banking industry”, offering a complete suite of banking services.

The general managing director and CEO of FCMB, Ladi Balogun said that Finbank enhanced FCMB’s market reach through additional capabilities such as its mobile and electronic banking platforms, which Balogun said were “remarkably effective”.

Bailed-out lender to help FCMB grow retail business

He added: “This transaction is consistent with FCMB’s strategic objectives and has a compelling rationale from a risk and financial perspective.

“Strategically, it allows us to strengthen our commercial banking business and develop a more robust platform for retail growth.

Finbank was one of the nine Nigerian banks to receive a state bail-out in 2009.

FCMB’s retail unit remains in the red although losses narrowed for the nine months to 30 September to NGN5.3bn ($34.2m) from NGN6.0bn in the previous year.

FCMB said it expected the new merged entity to “enable the realisation of synergies which will further drive the profitability of the bank.”