By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Nigerian mid-tier lender Keystone Bank Limited on Thursday announced it will divest from its offshore subsidiaries in three (3) African countries, Philip Ikeazor, chief executive officer (CEO) of the bank said this at a media parley with financial journalists in Lagos Nigeria.
According to Ikeazor, the bank will divest from its subsidiaries in Liberia, Uganda and Sierra Leone due to non-performing loans and high running costs.
While reviewing the group’s performance for 2013, Ikeazor said the group recorded a slight growth of 1.15 percent gross earnings to N49.553 billion from N48.991 billion posted in the same period of 2012.
‘’We have achieved a loan to deposit growth of 22 percent; while the industry average stands at 65 percent,” the Keystone CEO said.
He reported a shareholders fund in excess of N38 billion and increased active customers base.
Ikeazor affirmed that the Asset Management Corporation of Nigeria (AMCON) plans to begin the sale of Keystone bank this year; but cannot say the exact time, but believed it may commence after new owners have taken over Enterprise Bank Limited and Mainstreet Bank Limited in September.
Prior to this time, Mustafa Chike-Obi, CEO of AMCON has said the Enterprise and Mainstreet banks will be sold by September; but has not named the new buyers.
Ikeazor further affirmed that Keystone is also targeting an increase of about 15 percent growth in its loan book this year, and would be selling insurance and healthcare units.
In August 2011, the government set up AMCON to takeover Keystone Bank, Mainstreet Bank, and Enterprise Bank after the Central Bank of Nigeria (CBN) said they are not able to meet the minimum banking requirements.
