Home Business News Acquisition of Keystone Bank at ₦41bn helped boost AMCON's 2017 performance

Acquisition of Keystone Bank at ₦41bn helped boost AMCON’s 2017 performance

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The acquisition of Keystone Bank by new owners to the tune ₦41 billion has been revealed as one of the factors that helped the Asset Management Corporation of Nigeria (AMCON) to improve its overall financial performance last year, the corporation’s management has revealed.

AMCON’s 2017 full year financial report shows obvious improvements in terms of gross earnings which increased by 23% to ₦341.8 billion. Interest income also increased by 21% to ₦42.6 billion.

According to The Nation, AMCON’s Chief Executive Officer, Ahmed Kuru said the corporation had acquired some ₦1.7 trillion-worth of 12,537 Non-Performing Loans (NPLs) in 2009 following the banking crisis. The NPLs were acquired from over 22 financial institutions, including Keystone Bank, in a bid to rescue and recapitalise them.

while AMCON’s move had proved helpful towards saving the affected 22 banks, the corporation has, unfortunately, been struggling to recover debts from its many obligors.

Kuru, however, hinted on ongoing plans to recover said debts, even as it continues to deal with top assets in its portfolio. According to him, AMCON will not spare anyone in its bid to recover debts.

AMCON currently has as many as 350 debtors who altogether make up its ₦5 trillion huge debts. It is, therefore, important to recover these debts because, as Kuru noted, AMCON itself borrowed capital to buy the Eligible Bank Assets (EBAs) which made it possible for it to buy over the afore-mentioned bad loans of the 22 banks.

“As I said earlier, we will deal with some of those key assets very soon like the Peugeot Nigeria Limited in Kaduna, CDL, Aero Contractors, Arik Air and a host of others. But I must tell you, as we close in on these individuals and entities that owe us, I want you to know that they will call us names, they will blackmail us, they will threaten us, malign and harass us. However, I can tell you that hard as they will try, we will not be deterred in going about our normal duties as mandated by law.” -Kuru

 

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