TheNewsGuru

Tag: Access Bank

  • EFCC arraigns two Access Bank staff for defrauding Dasuki £100k

    Two employees of Access Bank Plc have been dragged before Justice Z.B. Abubakar of the Federal High Court sitting in Kaduna.

    The two suspects, Benjamin Soile, Okoro Junior, were accused of conspiring with others, Abubakar Mustapha and Abueleven Limited to defraud one Sa’adatu Dasuki of £100,000.

    The Economic and Financial Crimes (EFCC), which arraigned the accused persons, filed a two-count charge bordering of conspiracy and obtaining by false pretence to the tune of £100,000 against the defendants.

    The anti-graft agency, at the hearing on Thursday, said the suspects were apprehended upon receipt of the petition by Mr Dasuki, who alleged that in September 2018, Okoro and Soile, officials of Access Bank Plc, Kwato Road Branch, Ungwan Rimi, Kaduna, conspired with Mustapha to defraud her of £100,000.

    Mustapha allegedly introduced the bankers to her as bureaux de change operators, and convinced her to transfer the money from her Access Bank account to his own account in the same bank with an understanding that he will credit her account with the naira equivalent.

    However, the £100,000 was transferred to a Barclays Bank account of one Celestine Tagbo on the instruction of one Alhassan Habib both resident in London without the knowledge or consent of Dasuki.

    Thereafter, sensing that she had been duped, the victim demanded for a refund of the money, with Okoro crediting her account with the sum of N11,562,500 on September 12 and 13, 2018 but reversed the said transaction.

    “That you, Benjamin Olayinka Soile, officer of Access Bank, Okoro Agwu Junior, officer of Access Bank, Abubakar Siddiq Mustapha, ABUELEVEN Ltd a liability company and others at large sometime in September 2018 in Kaduna within the division of the Federal High Court with intent to defraud the sum of £100,000 from one Sa’adatu Dasuki under false pretence that you will give her the naira equivalent a pretence you knew is false and thereby committed an offence contrary to 1(1)(a) of the Advance Fee Fraud and Other Fraud Related Offence Act, 2006 and punishable under Section 1(3) of the Same Act,” one of the counts reads:.

    They pleaded “not guilty” to the charges.

    Prosecuting counsel, J. Saidi, urged the court to fix a date for commencement of trial.

    Counsel to the first defendant, P.I. Kalu, informed the court of his client’s bail application dated January 23, 2018.

    In his ruling, Justice Abubakar granted bail to the defendants in the sum of N500, 000 each and two sureties in like sum, who must own a landed property within the jurisdiction of the Court. One of the sureties must be a civil servant not below grade level 9.

    The case was thereafter adjourned to February 14, 2019 for hearing, and the defendants ordered to be remanded in prison pending the perfection of the bail conditions.

     

  • Merger: Access, Diamond Banks offer free ATM services to customers

    Merger: Access, Diamond Banks offer free ATM services to customers

    Access Bank Plc and Diamond Bank Plc customers will from today have access to 3,100 Automated Teller Machines (ATMs) that will provide free and seamless banking services to them.

    This follows the planned merger of the two Systematically Important Banks (SIBs) which is expected to be concluded in the first half of this year. The merger of the two lenders will give their customers access to the largest ATM network in the country.

    According to the two lenders, starting from today, their customers will have access to 3,100 ATMs free of charge.

    “Access Bank and Diamond Customers now have access to over 3,100 ATMs free of charge. This means that from January 1, 2019, you can use any Diamond Bank ATMs without paying the usual charges that apply on withdrawals from other banks’ ATMs. We are closer to you than ever before,” the bank said in a statement released on Monday.

    The Central Bank of Nigeria (CBN) had last month, gave a “No Objection” nod to the merger plans of Access Bank Plc and Diamond Bank Plc, the boards of both banks said yesterday.

    The deal is expected to be completed in the first half of this year.

    The merger will form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients.

    The combination of our two businesses will create the largest retail bank in Africa by customer base and a very significant player in the Nigerian market. This is a huge step towards the delivery of our goal to bring the power of banking to millions of people across Nigeria and an exciting transaction for Access Bank and Diamond Bank’s customers, staff and shareholders.

     

     

  • Diamond Bank appoints new chair to oversee merger arrangements with Access Bank

    Diamond Bank Plc on Thursday named Mr. Dele Babade as its acting chairman. He succeeds Mr. Oluseyi Bickersteth, who recently resigned as a director and chairman of the bank.

    In a statement signed by the bank’s Company Secretary and Legal Adviser, Uzoma Uja, the bank indicated that Babade’s appointment took effect on December 24, 2018.

    The acting chairman was first nominated by First Carlyle Growth V (Carlyle) and his appointment as a non-executive director was approved by the Central Bank of Nigeria (CBN) with effect from April 20, 2017. Carlyle is one of the major shareholders in the bank.

    Babade’s mandate is to oversee the business combination between Access bank and Diamond Bank Plc. The transaction is projected to be completed in the first half of next year and will see Access Bank as the post-merger bank.

    Last month, Bickersteth and three non-executive directors resigned their positions. The development, analysts and banking sources said, was to pave the way for new capital injections and the new investors to have more feelings about the banking operations.

    Diamond Bank is merging with Access Bank, in a move that pointed towards outright acquisition by Nigeria’s tier-I bank. The deal projected to be completed in the first half of 2019 will see Access bank as Nigeria’s largest financial installation.

    Carlyle, the United States (U.S.) private equity firm declined comment when Business Insider sub-Saharan Africa contacted the group on the Access-Diamond Bank deal.

    The Memorandum of Agreement and announcement of headline terms valued Diamond Bank at approximately NGN72.5 billion, about $200 million. The business combination will see Diamond Bank shareholders receiving N3.13 per share in cash and shares.

    The bank’s shareholders will receive a consideration comprising of N1.00 per share in cash and the allotment of two new Access Bank ordinary shares for every seven Diamond Bank ordinary shares held as at the implementation date.

    The business combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries and 29 million clients.

    It will brings together treasury, risk management and corporate banking expertise with strong retail and digital banking capabilities to create a financial institution operating across the full suite of products for all customer segments.

  • Shareholders list conditions to approve Diamond, Access Banks merger

    Shareholders list conditions to approve Diamond, Access Banks merger

    The proposed merger between Diamond Bank and Access Bank is still generating mixed reactions from different stakeholders.

    Some hours after the information was confirmed by both banks, shareholders of Diamond Bank gave their views on the issue.

    It is important to note that before the merger can scale through, both shareholders of the financial institutions must give their approvals at an Extra-Ordinary General Meeting (EGM).

    According to shareholders of Diamond Bank Plc, they can only allow the exercise see the light of the day if the board and the management fulfil one condition.

    Speaking with the News Agency of Nigeria (NAN) in Lagos, founder of Independent Shareholders of Nigeria (ISAN), Mr Sunny Nwosu, expressed his happiness with the development.

    He said, “I am happy about such an arrangement because it is good for the shareholders,” pointing out that, “It is not an issue of bridge bank where they fizzle out the minority shareholders.”

    According to him, the merger will add value for the shareholders, urging both banks to ensure that their shareholders approve the deal by calling for an extraordinary general meeting.

    “It is from a quoted company to a quoted company not in the hands of NDIC or the Central Bank of Nigeria, who behave as if they are sole owners of the bank.

    “And it is not within the powers of the CBN to take away our investment and call it bridge bank. This is a better deal for us and I know everybody should be involved,” he stated.

    On the condition they will give to make the arrangement become successful, Publicity Secretary of the shareholders group, Mr Moses Igbrude, said it is only if the board and management of Diamond Bank foresee it as the only option to sustain the bank.

    “If the board and management of Diamond Bank deem it fit that the only way to sustain the bank is to merge with another bank so be it,” Mr Igbrude said.

    He said that the bank should ensure that all the stakeholders were carried along to avoid litigation.

    “It is unfortunate that the young man that is running the affairs of Diamond Bank could not manage and grow it for the benefits of all and even to sustain his father’s legacy.

    “The Central Bank of Nigeria (CBN), the Nigerian Stock Exchange (NSE) and any other regulators concerned should ensure that minority shareholders are carried along and not short-changed in the whole arrangements,” Mr Igbrude stated.

    He said that the whole merger process should be transparent, noting that “their aim of building the biggest bank in Nigeria or Africa should not get into their heads without there being a consideration for what it’s will take to manage such an entity.”

    Former National Publicity Secretary of Nigerian Shareholders Solidarity Association of Nigeria, Mr Gbadebo Olatokunbo, called for the sanctioning of the board and management of Diamond Bank

     

  • Merger: We are yet to receive official notification from Access, Diamond Banks – SEC

    Merger: We are yet to receive official notification from Access, Diamond Banks – SEC

    The Securities and Exchange Commission (SEC) on Monday said it was yet to receive official notification of the proposed merger between Access Bank Plc and Diamond Bank Plc.

    The apex capital market regulator, insisted that only the formal application will form the basis of regulatory approval.

    “The SEC received on Monday, Dec 17 2018, notice of intention by Diamond Bank and Access Bank to merge. The Commission is currently waiting for their formal application,” SEC stated.

    Under extant rules, mergers and acquisitions must be approved by SEC to kick-start the formal process of the transaction, following which the parties will approach the Federal High Court for an order to hold an extraordinary general meeting of their shareholders for their approvals. The Nigerian Stock Exchange (NSE) will also have to approve the merger while the Federal High Court must authorise the final approved merger documents to conclude the transaction.

    Investors appeared to respond positively to the business combination yesterday at the NSE as the share prices of the banks rose by nearly the highest daily allowable change at the stock market. Diamond Bank recorded the highest gain of 9.47 per cent to close at N1.04 while Access Bank followed with a gain of 9.40 per cent to close at N8.15 per share.

    Market sources said the price rally was stimulated by the prospects and consideration of the merger. According to the proposal, Access Bank will acquire 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 banks, Diamond Bank shareholders will receive a consideration of N3.13 per share, comprising of N1.00 per share in cash and the allotment of 2 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 87 kobo per share of Diamond Bank on the NSE as at the close of business on December 13, 2018, the date of the final binding offer.

    After the completion of the merger, Diamond Bank will be absorbed into Access Bank and it will cease to exist under 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. Diamond Bank expects the transaction to complete in the first half of 2019.

     

  • Access Bank acquires Diamond Bank

    Access Bank acquires Diamond Bank

    Access Bank, a Nigerian multinational commercial bank, owned by Access Bank Group, has finally acquired Diamond Bank.

    The official announcement of the transaction will be made in the course of the week by the Central Bank of Nigeria (CBN), insiders told TheCable.

    According to the report, the acquisition was midwifed by the CBN in a bid to further consolidate the banking industry.

    The development is coming a week after Diamond Bank announced its decision to drop its international operating licence to focus on national operations following capitalisation issues.

    Diamond Bank’s chief executive officer, Uzoma Dozie, confirmed the development in a statement released on Friday.

    “With this approval, the bank will cease to operate as an international bank,” Dozie had said.

    “The re-licensing as a national bank supports Diamond Bank’s objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and the economy as a whole.

    “The move follows Diamond Bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017 and Diamond Bank UK, the sale of which is currently in its final stages.

    “The change to national bank status also enables the bank to maintain a lower minimum capital requirement of 10 per cent, as against 15 per cent required for international banks.”

    Diamond Bank recorded its worst month on record in November with share plunging to 0.61k per unit on November 30, 2018.

  • Diamond Bank woes worsen as customers lament non-payments

    Customers of Diamond Bank Nigeria using the bank’s mobile app eSUSU feature for group and personal savings have lamented non-payments, indicative of a probable financial crisis at the bank.

    TheNewsGuru (TNG) reports this is following downgrade of Diamond Bank, reflecting uncertainty over its solvency and liquidity in view of very weak asset quality, highly vulnerable capital position as well as tight foreign currency (FC) liquidity ahead of an upcoming maturing USD200 million Eurobond in May 2019.

    Customers who spoke with TNG at the weekend expressed fears of losing their hard-earned money following recent developments, especially rumours of acquisition, at the bank.

    The customers said they had used the bank’s mobile app thrift saving feature consistently without issues since they were aware of it, but are worried after the bank refused to pay recently.

    When contacted, officials at the bank told TNG that deactivation/liquidation process usually takes within 24 to 48 working hours to be completed.

    However, one of the customers told TNG of having two personal saving plans on the eSUSU platform, and that, five days after end of the plans that Diamond Bank was supposed to make payments available, the bank was yet to pay.

    When asked if the bank is in a process to discontinue the eSUSU feature, Diamond Bank said, “We can also confirm that the eSUSU services are very well available”.

    The bank, however, pleaded with customers to be patient.

    The fears of the customers who spoke with TNG were heightened by especially rumours that Access Bank was in talks to acquire Diamond Bank and the recent downgrade of the bank.

    In November, Access Bank was said to making negotiations to add Diamond Bank’s portfolio to its assets in 2019. Talks on the acquisition were on, according to sources, who said the fusion is set for the first quarter of next year.

    However, Diamond Bank immediately dispelled the rumours, urging the banking public, particularly its customers, to avoid panic withdrawals while assuring them of the safety of their funds.

    Also, only recently, Diamond Bank got approval of the Central Bank of Nigeria (CBN) to operate as a national bank only with immediate effect, resulting in the bank ceasing from operating as an international bank.

    The move followed the bank’s decision to sell its international operations, which included the disposal of its West African Subsidiary in 2017, and Diamond Bank UK, the sale of which is currently in its final stages.

    According to the bank, the re-licensing supports its objective of streamlining its operations to focus resources on the significant opportunities in the Nigerian retail banking market, and economy as a whole.

    “The move to a national banking license marks a continuation of our strategy to focus on Nigeria’s significant fundamental trends, including a large underbanked population and Africa’s biggest economy.

    “By focusing and optimizing our resources towards Nigeria and the priority area of retail banking, we will be better positioned for longer term growth and greater profitability.

    “The reduction in minimum capital requirement also increases our capacity to expand the quantum of business and product services we can offer consumers, as well as representing a key step in strengthening our financial position,” Uzoma Dozie, Diamond Bank CEO said.

    The change to national bank status enables Diamond Bank to maintain a lower minimum capital liquidity requirement of 10% as against 15% required for international banks.

    The share price of Diamond Bank moved up by +56.92% in one week.

    However, it has lost -15.7% in one month, -37.04% in six months, -32.89% in one year and -32% year to date.

    In the week rounding off November, Diamond Bank was among the top 10 decliners on the Nigerian stock market, shedding 31.58% in shares in a week-trading.

    In November alone, it lost 54% and was the worst performer in Nigeria’s all-share index.

    The bank reported a loss after tax of N9.01 billion in its 2017 full-year financial results as against a profit after tax of 3.49 billion in the preceding year.

    Recently, its chairman and three non-executive directors resigned from their positions in the move to recapitalize.

     

  • JUST IN: Diamond Bank speaks on ‘acquisition talks’ with Access Bank

    The management of Diamond Bank on Monday reacted to news making the rounds that it is in talks with Access Bank for acquisition.

    The bank in a statement signed and released by its secretary/legal adviser, Uzoma Uja on Monday said it is not in merger or acquisition discuss with any financial institution for now.

    It urged the banking public, particularly, its customers to avoid panic withdrawals while assuring them of the safety of their funds.

    See letter below:

  • Access Bank set to acquire Diamond Bank

    Indications emerged that Access Bank is set to add Diamond Bank’s portfolio to its assets in the next few months.

    Talks on the acquisition are on, according to sources, who said the fusion is set for the first quarter of next year.

    According to a report by The Nation, 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 N150billion.

    According to reports, Access Bank directors examined the proposal and, after series of meetings and evaluations, accepted to acquire the entity. However, the agreement so far reached, it was understood, will not alter the name of Access Bank nor its management structure.

    “It’s a complete acquisition and not a merger,” a source, who asked not to be identified, but who is familiar with the transaction, said, adding that one of the major considerations that swayed Access Bank’s directors in accepting the offer was the large branch network of the lender. “ It’s burgeoning NPLs, however, was of serious concern to Access Bank and almost becoming a disincentive, but it has been addressed,” the source added.

    It was also gathered that the CBN is well acquainted with the development. The regulator’s acquiescence to the deal was informed by the recent event that led to the liquidation of Skye Bank, and the apex bank not being disposed to following that route because of the huge cost implication that a bailout of Diamond Bank might require, encouraged the discussions, “and the regulator is pleased with the level of discussions so far.”

    “ The CBN encouraged the ongoing arrangement, given the fate that befell the defunct Skye Bank a few months ago. The apex bank gave its consent and approval for the actualisation of the marriage. ”

    It was also learnt that the regulator’s un-alloyed support for the emerging entity followed its unpreparedness to commit any further huge funds for the rescue of any wavering bank.

    Bloomberg reported that a major investor was in the process of injecting funds into Diamond Bank on condition that the CEO, Uzoma Dozie, exits his position. The report attributed to the Chairman, Seyi Bickersteth, has since been denied by the bank.

    Diamond is one of a number of smaller Nigerian lenders struggling to maintain a regulatory requirement for banks with international operations to have reserves of capital that cover at least 15 percent of outstanding loans. The company’s ratio stood at 16.3 percent at the end of September, the lender has said.

    The bank cut its full-year profit forecast by more than half on Tuesday after income from operations declined. It now expects profit before tax to reach 3.8 billion naira ($10.4 million), down from a previous target of 8 billion naira.

    The shares rose 2.5 percent on Wednesday, trading at 1.21 naira at the close in Lagos. The stock is down 19 percent this year, compared with a 12 percent fall on the NSE Banking 10 Index.

    However, Diamond Bank, in a statement, said contrary to media articles, “the Board wish to clarify that the company has not received an offer from an investor to inject cash. Further to the Company’s announcement of 26 October 2018, Diamond Bank and its Board of Directors continue to review all strategic options on a regular basis. Diamond Bank would also like to clarify it enjoys the support of its major shareholders, including The Carlyle Group and Kunoch Holdings who are, as ever, working in cooperation with the Board and management as appropriate to ensure the successful operation of its business in Africa’s most dynamic banking market.

    “Further to the announcement of 24 October 2018, Diamond Bank is in active discussions with regards to the appointment of new non-executive directors to the Board and, subject to CBN approval, these will be announced in due course.” “Diamond Bank’s recent Third Quarter results published on October 26, 2018 show the business continues to execute its clearly articulated tech-led retail strategy despite headwinds in the Nigerian economy,” the bank stated.

  • Bank official spends depositors’ money on clothes, shoes

    Bank official spends depositors’ money on clothes, shoes

    Godfrey Ango, a support staff from Integrated Corporate Services attached to Access Bank has confessed to spending depositors’ money on house rent, school fees, clothes, shoes and Ukrainian Students’ Visa.
    TheNewsGuru (TNG) reports this is contained in confessional statement made by Ango to the Economic and Financial Crimes Commission (EFCC).
    Arraigned in December 2015, Ango sometime in 2011, while being a bulk teller at Access Bank, Wuse 2, Abuja, allegedly diverted over N5,224,500 of depositors’ money to personal use.
    It was reported that the victims – Hillside Schools and one other company, petitioned the bank. The case was investigated internally by the bank and later referred to the EFCC for further investigation and prosecution.
    In his statement to the EFCC, Ango confessed to committing the crime and outlined how he spent part of the money to settle personal problems.
    Counsel to EFCC, D. M. Nkwa, urged the court to convict the defendant so that it can serve as deterrent to him and others.
    In his judgment, Justice J. Adepoju, of the FCT High Court sitting in Wuse on Friday, found Ango guilty of all the 12 counts and sentenced him to 6 months imprisonment with option of N200,000 fine on each of the counts.
    The court also ordered the convict to make a restitution of the diverted sum to the victims.
    “I have considered the arguments of both parties, since the purpose of punishment is to prevent further offences and the convict has shown remorse for his actions, monetary conviction and payment of fine is necessary. It will also allow decongestion of prison,” the Judge said.