PBA ReporterThe Chairman of Titan Trust Bank, Mr. Tunde Lemo, has said that the outcome of the combination of Union Bank and Titan Trust Bank will be the emergence of technology-driven tier 1 bank.
Lemo, who stated this over the weekend in Lagos during the first reunion party for ex-colleagues of Wema Bank, also said that the Central Bank of Nigeria (CBN) should not be blamed for the insufficiency of forex in the country.
According to Lemo, Titan Trust is a tier 3 bank. Union Bank is a tier 2 Bank. “So we are going to see the emergence of a tier 1 Bank.”
He further observed that in spite of the age of Titan Trust Bank, it is today Nigeria’s number in trade finance, adding that the lender saw an opportunity in Union Bank where it can leverage fintech in deploying services.
His words, ” Union Bank is one of the largest in terms of network. But we think that after 104 years of operation, it can be rejuvenated by a bank like Titan Trust Bank that has cutting-age modern banking skills.
“We believe that by combining fintech strength with the brand value of Union Bank, we can make an impression in Nigeria by deploying modern banking to every nook and cranny of the country.
“So, there will be a significant synergy between the two institutions,” Lemo stated.
He noted that though the CBN has to tinker with the forex policy to pay the federal government’s debt, he insisted that Nigerians should be held responsible.
Lemo argued that “because what determines the exchange rate of your currency is what you can offer to the world; so, if the demand for Nigeria product is very low compared to what we intend to import, definitely your currency will continue to take a plunge no matter what the CBN does.”
He believes that the advice of the International Monetary Fund (IMF) that there is a need to have a more market-friendly system of foreign exchange management is good.
“If CBN can do a bit of that, then we will see liquidity coming into the forex arena, but then Nigerians should be blamed for the depreciation of the naira because Nigerians have a high taste for ostentatious commodities imported from overseas,” he added.
Lemo commended the federal government for the role it played in helping the economy to exit recession within 15 months, adding that the banking industry has continued to add value to businesses because of its resilience.
He hinted that the banking industry has been able to revitalize the economy notwithstanding the financial crisis of 2007 and 2008 and as well the challenges of COVID-19 witnessed in 2020.
According to him, the economy did not take a plunge during the COVID-19 pandemic, because it was as if the banking industry foresaw the coming of the pandemic.
“Every bank today has migrated all its products to the digital platform and so whether COVID-19 pandemic is restricting you or not, banking business through the digital platform remains unaffected, and this was why we were able to improve our Gross Domestic Product (GDP) in the first quarter and stood at 3.9,” he said.
According to him, “the GDP will continue to grow even though last quarter GDP performance was as a result of the lower base effect. The GDP will moderate in the first quarter and it will move up later especially this year which is before the election year.
During an election year, we tend to see more inflation which will increase the GDP, there will be a lot of economic activities and it will be inflationary, so that is what I see on the horizon.
Speaking further on the recent acquisition of Union Bank by Titan Bank, he said: “The co-shareholders of Titan Trust Bank saw a unique opportunity in Union Bank.
Titan Trust Bank has been looking at it, despite their age, they are the number one trade bank today.
Titan Trust is a bank that leverages fintech in deploying its services, which is why you don’t see our footprints all over the country and we thought by combining all that strength with the contemporary strength with the brand value of Union Bank we can make an impression in Nigeria by rapidly deploying modern banking to every nook and cranny. So, it is going to be a major synergy.”
One of Nigeria’s oldest banks, it should be remembered that Union Bank of Nigeria recently dropped a hint of its plan to divest the entire shareholding in Union Bank UK, its United Kingdom subsidiary.
This comes as the bank continues with its assets transfer process following its acquisition by Titan Trust Bank in December 2021, which many foresee will turn the old horse into a subsidiary of the new generation bank.
In a notice filed to the Nigerian exchange on Tuesday following the announcement of its extraordinary general meeting, Union Bank of Nigeria said it will seek the votes of its shareholders at the forthcoming extraordinary general meeting, which has been scheduled to hold on 29 of March 2022, during which it will present for consideration special resolutions for the approval of the proposed divestment of its entire shareholding (direct and indirect) interest in its subsidiary, Union Bank UK Plc, to the shareholders, as well as for the sale and appointment of investment advisers to the transaction
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