First Bank Admits Searching for Other Banks to Acquire

By Dipo Olowookere

This week, a local newspaper reported that First Bank was making efforts to merge with Heritage Bank and Polaris Bank (formerly Skye Bank Plc).

The news report came as a surprise to many, especially the investing community as well as shareholders of the financial institution, due to the state of the two banks being rumoured to be acquired.

Heritage Bank and Polaris Bank are lenders some observers assume to be struggling for survival and to them, acquiring these financial institutions would become a huge burden on First Bank, which is still making efforts to cut down its non-performing loans (NPLs), which has been in double digits for a while.

On Friday, the management of FBN Holdings Plc, the parent company of First Bank Nigeria Limited, reacted to the article, admitting that it was searching for potential acquisition like every other company in the industry.

In the notice signed by its scribe, Seye Kosoko, and filed with the Nigerian Stock Exchange (NSE), the bank said it will not hesitate to acquire any bank that adds value to its shareholders and other key stakeholders.

“Recent events in the industry have thrown up merger and acquisition opportunities for banks. It is, therefore, not unexpected that analysts will continue to share viewpoints about the evolution or potential consolidation in the Nigerian banking industry.

“There will always be speculation on First Bank’s involvement on account of size, liquidity, systemic importance and historic support in backstopping the industry.

“Inorganic growth remains a strategic consideration for all financial institutions, but from First Bank’s perspective, will only be considered when it is value accretive to shareholders and other key stakeholders.

Similar to other Nigerian banks, First Bank continues to scan sub-Saharan Africa in general for potential acquisitions.

“FBN Holdings Plc is mindful of its responsibilities as a premium board listed company and will make appropriate disclosures should it find such value,” the disclosure said.