Nigeria: Intercontinental Bank Targets N600 Billion Recapitalization    
Industry News

By: Yunus Abdulhamid; AllAfrica.com, Nigeria

Intercontinental Bank Plc will inject recapitalization fund of about N600 billion in the next few weeks, its Chief Executive Officer, Mr. Mahmoud Lai Alabi said yesterday.

He spoke in Abuja at the bank's consumer forum and promo draws.

He said the bank has signed a Memorandum of Understanding (MOU) and transaction implementation pact with Access Bank to create the largest financial institution in Africa.

He said despite the huge challenges that befell the bank posed by bad loans leading to the loss of N238 billion before the intervention of the Central Bank of Nigeria and the Asset Management Company of Nigeria (AMCON), a remarkable turnaround has been achieved in the past two years.

He said: "The loss and bad loans recorded by the bank pre-intervention period led to the erosion of our capital and public confidence. But AMCON has recently bought off part of the bad loans with the injection of N170 billion into the bank. In the next two months, the bank will be fully recapitalized with about N600 billion."

In spite of the odds, the bank came out of loss making to profit making in 2010. It recorded a profit of N65 billion as at December, 2010.

Mr. Alabi said the draws which was the first in the bank's 'I save, I win' promo, started three months ago to rewards its loyal customers. The draws were for customers in the North Central region and FCT of the bank.

At the draws, two customers (Adelusi Eniola Bamidele, FCT and Chris Ndubuisi) won the star prize of a new Toyota Corolla car each, while 40 others won a 32 inches LCD television set each. Another 20 set of customers won N50,000 each, while yet another 40 and 20 emerged winners of N20,000 each and N10,000 respectively.

The bank boss said the promo runs till October and that at grand finale to be held in Lagos, a star winner will go home with N15 million cash prize or a 3-bed room flat at the County Estate in Lagos.

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