Awful August: Three (3) Nigerian banks that didn't sail through
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Posted by Felix Okoli on August 18, 2011 at 03:00:51:
A lot has been happening to the Nigerian banking industry between 2009 and 2011 with the tenure of Sanusi as CBN governor. Where did the boom go? Was it all a fuss? Why does it seem as if Nigerian banks which were once among the leading pack in Africa are now falling apart as a new governor takes over CBN? Stock prices in this sector have already lost more than 80% of their value, eroding investor's interest in the capital market. A couple of bank M.D's and CEOs are already in court, some in jail for what I would probably refer to as cosmetic accounting based on allegations and sanitization efforts by Sanusi. A couple of the banks that were mostly affected by the crisis and probably still have a troubled financial base. In all, about 8 banks were said to be in financial troubles as at the end of 2009 and these were:- Union Bank (Non Performing Loan = 73B+)
- Afribank (Non Performing Loan = 141B+)
- Intercontinental bank (Non Performing Loan = 210B+)
- Oceanic bank (Non Performing Loan = 278B+)
- Finbank (Non Performing Loan = 42B+)
- Spring bank (Non Performing Loan = 95B+)
- Bank PHB (Non Performing Loan =170B+)
- ETB (Equitorial Trust Bank) (Non Performing Loan =34B+)
See: http://www.cenbank.org/OUT/PUBLICATIONS/PRESSRELEASE/GOV/2009/PRESSSTATMT%2002-10-2009.PDFNow 3 banks have been finally been sold by CBN and acquired by AMCON (Asset Management Corporation of Nigeria )The New banks are: Mainstreet Bank, Keystone Bank and Enterprise Bank and these are the new names of the 3 Nigerian banks formerly known as Skye, Afribank and BankPHBOne question that comes to mind is what will happen to the shareholders of these former banks. Will they still have a stake in the new banks or will their investment just be wiped away?
Comments:
A lot has been happening to the Nigerian banking industry between 2009 and 2011 with the tenure of Sanusi as CBN governor. Where did the boom go? Was it all a fuss? Why does it seem as if Nigerian banks which were once among the leading pack in Africa are now falling apart as a new governor takes over CBN? Stock prices in this sector have already lost more than 80% of their value, eroding investor's interest in the capital market. A couple of bank M.D's and CEOs are already in court, some in jail for what I would probably refer to as cosmetic accounting based on allegations and sanitization efforts by Sanusi. A couple of the banks that were mostly affected by the crisis and probably still have a troubled financial base. In all, about 8 banks were said to be in financial troubles as at the end of 2009 and these were:- Union Bank (Non Performing Loan = 73B+)
- Afribank (Non Performing Loan = 141B+)
- Intercontinental bank (Non Performing Loan = 210B+)
- Oceanic bank (Non Performing Loan = 278B+)
- Finbank (Non Performing Loan = 42B+)
- Spring bank (Non Performing Loan = 95B+)
- Bank PHB (Non Performing Loan =170B+)
- ETB (Equitorial Trust Bank) (Non Performing Loan =34B+)
See: http://www.cenbank.org/OUT/PUBLICATIONS/PRESSRELEASE/GOV/2009/PRESSSTATMT%2002-10-2009.PDFNow 3 banks have been finally been sold by CBN and acquired by AMCON (Asset Management Corporation of Nigeria )The New banks are: Mainstreet Bank, Keystone Bank and Enterprise Bank and these are the new names of the 3 Nigerian banks formerly known as Skye, Afribank and BankPHBOne question that comes to mind is what will happen to the shareholders of these former banks. Will they still have a stake in the new banks or will their investment just be wiped away?
Comments: