FinBank has set a strategic plan to increase its profit after tax of N2.42 billion for its financial year ending December 31, 2011.
The bank also planned to raise its gross earnings to N43.35 billion within the same period.
The bank had earlier projected that its gross earnings and profit would hit N10.48 billion and N156 million at the end of third quarter.
FinBank Plc and First City Monument Bank (FCMB) Plc have signed a Transaction Implementation Agreement (TIA) for the business combination of both financial institutions.
This is further to the Memorandum of Understanding (MoU) signed in May this year.
Group Managing Director of FinBank, Mrs. Suzanne Iroche said: “We welcome this strategic investment which will strengthen the financial position of the institution.”
The development represents a significant milestone in the recapitalisation process aimed at restoring confidence to the banking sector.
A joint statement issued by the two banks explained that the business combination would involve a Scheme of Arrangement, followed by a Scheme of Merger to be executed in accordance with the laws of the country.
According to the statement, the combined bank would be a unique financial institution with proven corporate banking capabilities, strengthened commercial banking business and a robust platform for retail growth.
The statement also added that “the merged entity will also benefit from unique complementary transactional banking platforms and offerings, as well as leverage capital, optimise synergies and drive shareholder value.”
The Group Managing Director of FCMB, Mr. Ladi Balogun, welcomed the signing, adding that the combination would “accelerate the attainment of the bank’s strategic and financial goals, whilst also creating a more robust retail platform.”
With the signing of the TIA, FinBank and FCMB would now commence the process which would be subject to the approval of the shareholders of both institutions, the CBN, the Securities and Exchange Commission(SEC),the Nigerian Stock Exchange(NSE) and the Federal High Court.
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