There are indications that Sterling Bank Plc might buy one or two mid-sized commercial lenders before the end of 2016.
Findings have shown that the lender is considering the acquisition of Keystone Bank Limited the last of the three bridged lenders bought by the Asset Management Corporation of Nigeria (AMCON), The Nation learnt
According to an insider source, Sterling Bank is also considering buying another mid-tier lender with strong presence in the northern part of the country.The targeted bank has been grappling with low liquidity in recent months due to sharp falls in the value of the naira, crude oil prices and increased regulatory pressure.
Sterling Bank’s Chief Finance Officer, Abubakar Suleiman, told Reuters that these factors are forcing banks to recapitalize.
He said his bank expected a further 20 per cent devaluation in the naira, eroding capital ratios for several of its rivals exposed to foreign currency assets and potentially triggering mergers.
Sterling Bank CEO, Yemi Adeola, disclosed late last year that six commercial banks are likely to seek mergers and acquisitions this year. The mergers, he said, are triggered by the shock created in their assets and balance sheet sizes in the face of declining oil prices.
