DIAMOND BANK: See What Will Happen To Its Bad Loans Before Merger Is Completed
So one of the concerns that trailed the acquisition of Diamond by Access Bank was whether Access Bank will also absorb the bank’s huge non-performing loans, NPLs which was estimated at 150 billion naira.
But it now obvious that Diamond bank indeed had a plan for the NPLs long before the merger and acquisition talks started.
While speaking at Arise Television breakfast show on Friday, monitored by Bounce News, the Group Managing Director of Diamond Bank, Uzoma Dozie clarified that the NPL stood at 12% and not 6 or 30% which had been reported in the media.
He said with or without the merger, the bank had concluded plans to write off the loan this December and that the bank would have started the year 2019 on a clean slate.
Also, Access Bank CEO, Herbert Wigwe had in an interview on the same television station on Thursday, confirmed that Diamond was determined to write off the NPLs before the merger is finalised.
“We are fully cognizant of all of those things, and one of the things we are doing is that Diamond Bank is determined to write off all of those loans before the date of the legal merger,” he said.
“They would do so on December 31 and whatever the residue is from next year, that solves that problem permanently.
“So, we have enough capital to support the enlarged franchise which is important. Now all the benefits of recovering bad loans now become a plus because we have cut out what becomes cancer and taken it out totally.”
Don't forget to share this story with your friends.