South Africa’s Standard Bank is keen to acquire commercial and retail banks in Nigeria and other countries. A team has been set up to hunt for potential deals.

Deputy chief executive officer Ben Kruger says the bank has set aside $1.4 billion for international expansion. This is expected to complement the $350 million of excess capital in its Nigeria unit, Stanbic IBTC that could be used to fund acquisitions in the country.

‘Our biggest priority in our banking expansion plans is the hot Nigerian market,’ says Kruger.

Kruger says that acquiring of a retail bank will provide  access to a local customer base that is more difficult to achieve through organic growth.

Central Bank of Nigeria (CBN) has said the planned Asset Management Company (AMC), which will buy toxic assets, is likely to get legislative approval in two weeks, after a joint sitting by the lower and upper chambers of the National Assembly.

Standard bank has requested to be the favoured foreign institution in the consolidation process, citing the banks’ history, experience and risk management profile.

The bank currently has 300,000 customers in Nigeria, and plans to double its branch network to 200 to penetrate all 36 states over the next 18 months.

Source: Business Day Nigeria