Ahead of its shareholders’ meeting slated for the first week of March 2019, the management of Access Bank and Diamond Bank have reiterated their commitment to customers of both lenders.
In a joint statement by Access Bank and Diamond Bank, both lenders assured of continued and improved banking services to its more than 29 million customers; a figure both banks will boast of after the completion of the merger.
Access and Diamond Bank merger result
Nairametrics had reported that the two Nigerian banks will merge to become the largest banking institution in Nigeria, and on the African continent, with a large customer base equated to the size of a country.
Though the management of both Nigerian banks intends to keep the Access Bank brand name, but there are plans to incorporate the Diamond Bank colour. The merger will create a physical presence in 12 countries across three continents and wielding 3,100 Automated Teller Machines (ATM) and nearly 32,000 PoS terminals.
The imminent merger between Access Bank, a tier-1 lender, and Diamond Bank, Nigeria’s
leading tier-2 lender has already received approval in principle from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), but will have to wait until the shareholders meeting in March.
“the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have granted both banks an approval in principle for the merger. The final approval needed comes after the shareholders meeting convenes in the first week of March. At the latest, the whole merger process is expected to be completed in the first half of 2019”, an official joint statement disclosed.
Merger benefits to both banks
The consolidation of both Access Bank and Diamond Bank will establish a leader in the banking sector, giving power to their brand name among international partners, trade investors in need of a powerhouse with knowledge about the African landscape.
In the statement seen by Nairametrics, it was disclosed the merger will also enable them to acquire bigger market share and clinch business easily compared to their contemporaries in the banking sector, giving room to opportunity both in local and international markets.
“this greatly bolsters the bank’s brand, opening doors of opportunity both in local and international markets. As a continental financial force, it is set to attract more opportunities such as trade finance from international partners seeking multinational lenders with local intelligence.
“Also, in big banking, reputation plays a pivotal role in competition for business. Bluechip companies or major businesses court certain lenders for credit facilities not only for the credit but because the brand power and credibility of the lender vouches for the sustainability of the client in the mind of the government or its customers.
The stronger the lender is, the more protection it gives the client and security in the minds of the public. Success, then begets success. Consequently, Access and Diamond bank merger status enables them acquire bigger market share and clinch business easily. These all lead to more profit and further appreciation of share value for share owners in the bank in the long run.” They said about the merger.
Benefit of merger to customers of both banks
During a joint conference attended by Nairametrics, Access Bank Chief Executive Officer, Herbert Wigwe disclosed that the merger with Diamond Bank will catalyse the objective of Access Bank for customers and small and medium enterprises. Stating that the experience of Diamond Bank in the retail sector and role in the financial inclusion process will aid Access Bank in its 5-year plan to grow its retail business.
Adding that the merger will result as a win-win for the companies involved and their millions of customers. While the statement assured that entrepreneurs will be afforded more access to credit facility as being championed by Diamond Bank before the merger began.
“Diamond bank merging with Access Bank also means, the former’s customers can enjoy access to the latter’s strong balance sheet, ubiquitous presence and solid operational structure. This means more small and medium entrepreneurs getting increased access to loans and at lower interest rates.
“Last year, Diamond Bank gave over a billion naira in loans to this crucial sector and with marriage to a stronger balance sheet going forward, the management would be able to offer much more. The merger also means increased convenience as there are twice more branches for customers to walk in and ATMs and PoS to use within the country.
“Diamond Bank customers also get instant access to Access Bank branches outside Nigeria in eleven other countries and not have to worry about intra-africa money transfers or transactions, which is a major financial problem on the continent.”