28, March 2011

Joint Statement on the Proposed Business Combination

We are pleased to announce that Access Bank Plc and Intercontinental Bank Plc have signed a Memorandum of Understanding (MOU) for the purpose of business combination of both institutions which will result in the emergence of one of Africa ‘s largest financial institutions.

 

The MOU signing follows the completion of a competitive, rigorous and transparent selection process and the approvals of the Board of Directors of both banks.

 

The business combination will offer unique opportunities for both institutions.

 

The Retail banking operations of Intercontinental Bank coupled with the Wholesale and Commercial banking strength of Access Bank offer a high degree of synergy and complementarity; unique in the Nigerian banking environment.

 

The synergy from combining the two banks will therefore create a formidable competitor with scale to rival the top banks in the industry.

 

We note that the careful consolidation of the banking sector is essential to the future stability and growth of the Nigerian economy.

 

The combination of Access Bank Plc and Intercontinental Bank Plc is of systemic importance and safeguards a significant degree of capacity in the Nigerian banking sector that would otherwise be lost in the event of non resolution of any of the rescued banks.

 

Critically, the Transaction provides a safe harbour for the depositors of Intercontinental Bank Plc and the seamless continuation of banking services to Intercontinental Bank’s considerable customer base.

 

The resulting footprint of the combined entity and its increased access to low cost deposits combined with Access’s recognised competence in commercial banking, robust balance sheet and proven track record, supported by a culture of strong corporate governance and risk management, will create a market leading platform from which the combined entity can capitalise on growth opportunities.

 

In accordance with international best practices, the process will be subject to necessary Shareholder, Regulatory and Judicial approvals.

 

Signed

Management

Enquiries:

Company Secretary (Access Bank Plc) +234 703 4177 024

Company Secretary (Intercontinental Bank Plc) +234 802 5011 707