Union Bank of Nigeria to Sell Non-Banking Units, CEO Says

Union Bank of Nigeria Plc plans to sell non-banking units to comply with Central Bank of Nigeria regulations, Chief Executive Officer Emeka Emuwa said.
“The divestment will see the sale of about nine units of the bank before the first quarter of 2015,” the CEO told reporters today in Lagos, the nation’s commercial capital.
Union Bank, one of eight lenders bailed out by the central bank during a debt crisis in 2009, will sell insurance, property, share registry and trustee businesses to comply with the new rules. That will allow the bank to become a holding company operating local and international units.
“The restructuring will enable us focus on core banking and do more in our area of competitive advantage, which is commercial banking,” Emuwa said. Union Bank “has sufficient capital to fund its restructuring and expansion and will not be seeking further capital in the near to medium term,” he said.
The bank’s shares rose 0.1 percent to 10.20 naira as of 2:30 p.m. in Lagos, bringing this year’s gain to 5.9 percent. That compares with a 8.3 percent decline in the Nigerian Stock Exchange All-Share Index.
Source: Bloomberg

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