Union Bank Plc is in the process of selling its non-core banking subdiaries to allow it focus on areas of competitive advantage, particularly retail, commercial and corporate banking, the Group Managing Director, Mr. Emeka Emuwa, has said.
He said the divestment process would be concluded before year end, well ahead of the February 2015 deadline that the Central Bank of Nigeria has set for all Deposit Money Banks to do so.
Several other banks have complied with the CBN directive. GTBank, United Bank for Africa, and Diamond Bank have all sold their subsidiaries, while First Bank, FCMB and Stanbic IBTC Bank, a unit of South Africa’s Standard Bank, have adopted the holding company model.
Emuwa, who spoke with journalists in Lagos on Monday, however, said the bank would not divest from its London subsidiary, Union Bank United Kingdom.
“We are divesting from all non-core banking subsidiaries except Union Bank UK. It is important to focus energy on areas of competitive advantage, that is, commercial banking.”
“Most of the subsidiaries are not aligned with our core vision. We hope to conclude the divestment by the end of the year, before the February 2015 deadline set by the CBN.”
Union Bank was among the nine banks that the CBN replaced their management during the banking sector crisis of 2009.