Diamond Bank to sell Francophone operations
Diamond Bank Benin has operations in Benin, Côte d’Ivoire, Senegal and Togo. The bank had total assets of $1.3bn, total deposits of $1bn and revenues close to $50m at the end of last year.
Negotiations are still ongoing but the agreement is expected to be signed by the end of the week.
This is not the first business the two banks have done. In 2011, NSIA bought Adic Insurance from Diamond Bank for $45m.
If this deal goes as planned, Diamond Bank will not be the first Nigerian bank to withdraw from Francophone countries. Access Bank did the same in 2013, selling its Ivorian subsidiary to pan-African group Afriland First Group.
Like other Nigerian banks, Diamond Bank is currently looking for fresh capital in order to improve its capital adequacy ratios in a tough operating environment.
Other Nigerian banks are still active in Francophone countries, like United Bank for Africa.
First Bank of Nigeria also strategically developed in the subregion, starting in 2011 in the Democratic Republic of Congo, where the bank acquired Banque International de Credit, then Senegal and Guinea following the acquisition of ICB’s operations in 2013 and 2014.