GBOLABO AFUWAPE
Access bank and Diamond bank shareholders have expressed their optimism that Access bank will make efforts to call-back some of the N150 billion bad loans in the books of Diamond bank on completion of the merger process.’.
Speaking to InsideBusiness Online Newspaper the President of Progressive shareholders association of Nigeria (PSAN), Mr Boniface Okezie project good omen from the merger as Access bank will be poised to shrink the N150 billion bad loans it inherited in Diamond bank.
The President said “Access bank, which has non-performing loans of N16.247 billion in its accounting portfolio due to its business discipline and thorough professionalism, will put machineries in place to ensure that it recovers the bad loans which Diamond bank through its leadership and management failed to recoup into the bank’s coffers.
Investigations had it that these are some of the firms in which the bad loans are hung, Geometric Power- N35billion, Lone star Drilling (owned by Late Chief Idisi) – N13.3billion, Peugeot Automobiles Nigeria – N12billion, Robert Dyson and Dikett (owned by the Late Sony Odogwu) – N10billion, Foby Engineering- N8billion, Loanseed Ltd (Sunburn yatch) N5.6billion, Gitto Construction (Owned by the Late Italian Mr Gitto)- N5billion, Harpel Nig Ltd (owned by Late Emma Nwokoro) -N4.8billion, Frajend Motorcycle-N3billion, Leaders & Company (Thisday) -N2.5billion.
Okezie stated that “shareholders are expectant that Access bank will show its might by going all out to harvest the bad loans which Diamond bank’s leadership, especially under the leadership of the Uzomas’ and Emeka Onwuka, had incurred, with the aim of having atleast N100 billion out of the N150 billion non-performing loans (NPLs) in its coffers so it can further improve its financial portfolio and capital base.”
The General Secretary of Independent Shareholders of Nigeria (ISAN), Mr Adeleke Adebayo, in a chat stated that the merging of Diamond bank was a wise move which will favour not just the shareholders of Diamond bank but its investments.
The secretary stated that “the heightened non-performing loans (NPLs) which Diamond bank has incurred over the past year, is expected to decline. It is expected that Access bank will put its foot on the ground and ensure that it gets back as much as it can of all the over N150billion NPLs of Diamond bank”.
He further said that “the ability of Access Bank to achieve get those monies back will immensely improve the capital base of the soon to be foremost bank in Nigeria.”
Comments are closed.