Primary mortgage banks, TrustBond Mortgage Bank Plc, and First Mortgages Limited have concluded plans to merge their businesses.
The process will culminate in the business of TrustBond Mortgage Bank Plc being merged with that of First Mortgages Limited to become FirstTrust Mortgage Bank Plc. At a court-ordered meeting on Wednesday, the banks said the objective of the proposed merger was to create a stronger mortgage banking institution.
The banks said they hoped to emerge as a mega mortgage bank capable of competing more vibrantly within the Nigerian mortgage banking sector.
The banks gave some of the objectives to be achieved through the merger as talent development, value addition, cost efficiency advantage and innovative technology. Both organisations said the synergy in the proposed merger would create enhanced stakeholders and shareholders’ value.
The Chairman, Trustbond Mortgage Bank Plc, Etigwe Uwa, said the primary objective of the merger was to achieve the goal of becoming a larger mortgage banking firm with technical capabilities to take advantage of economies of scale and become the preferred choice for clients.
“The post-merger bank will provide greater strength in mortgage banking product offerings as well as greater market share while adding the opportunity for growth in the overall scale of the product offerings,” he said.
The Chairman, First Mortgages Limited, Adesina Buraimoh-Ademuyewo, described the merger as an attractive combination for all First Mortgages Limited and TrustBond Mortgage Bank Plc stakeholders.
He stated that customers would benefit from a wider and better-integrated array of mortgage banking services while employees would enjoy the advantages and opportunities of being a part of a larger and stronger bank.