Six commercial banks will seek
mergers and acquisitions in the New Year.
Managing Director, Sterling Bank
Plc, Yemi Adeola, who disclosed the news yesterday, reportedly
stating that he envisaged possible shrinking in the number of local banks in
the New Year.
However, he didn’t name any banks
that may be involved in the merger.
Citizen reports that the development arises, “no thanks to the
shock created in their 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. This has adversely affected banks’ oil assets.
Besides, the level of non-performing loans in the sector has risen.”
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