According to a report by Citizen, Six commercial banks are likely to seek mergers and acquisitions in the New Year.
The publication reports that the development arises, “no thanks to the shock created in their assets and balance sheet sizes in the face of declining oil prices. Crude oil prices have fallen to as low as $37.11 per barrel from over $110 per barrel a year ago. This has adversely affected banks’ oil assets. Besides, the level of non-performing loans in the sector has risen.”
According to the report, Managing Director, Sterling Bank Plc, Yemi Adeola, who disclosed the news yesterday, reportedly stating that he envisaged possible shrinking in the number of local banks in the New Year.
However, he didn’t name any banks that may be involved in the merger.
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