Globus Bank to Raise 129bn, Chairman Peter Amangbo Explain Plans
Globus Bank Limited, a financial institution with national authorisation, has revealed plan to raise N129 billion in less than two years across sources to meet its new capital requirement.
Mr. Peter Amangbo, Chairman, board of directors of Globus Bank Limited in an exclusive chat with MarketForces Africa said the national lender has just completed N25 billion rights issue to existing shareholders of the financial institution.
According to him, the amount has lifted Globus Bank capital base to N71 billion. Some investment banking firm had classified Globus Bank Limited as regional lender. However, Mr. Amangbo has correct the impression with details discussion with MarketForces Africa.
“We just concluded a rights issue raising N25 billion, bringing our total to N71 billion. Being a national bank, we have to raise N129 billion to retain our status as national bank”, the chairman of the Bank said.
In its first quarter macroeconomic note, FSDH Research had categorised Global Bank as regional lender. Analysts at the firm had estimated that the bank would only require to raise N24.9 billion to retain its licence at the end of first quarter.
A review of the bank audited financial statement for 2023 showed that its share capital and share premium totalled N45.776 billion – additional came from previous your deposit for shares.
Amangbo said in 2024, Globus Bank Limited will raise fund through private placement, usually with selective investors, to the tune of N10 billion as part of overall recapitalisation programme.
The Chairman explained further that the bank will sell rights issue and private placement in 2025 to raise N50 billion. He added that the bank would raise the remaining balance of N69 billion from private placement and public offer in the first quarter of 2026.
Since it was established, the bank has successively delivered an impressive financial scorecard. Globus Bank Limited grew profit by 117.56% year on year in 2023, according to its financial statement for the year. Details showed that profit rose to N18.082 billion in 12 months from N8.311 billion in 2022.
In the period, the national lender nearly double down interest income, up by more than 93.77% year on year from N34.627 billion in 2022 to N67.98 billion at the end of financial year 2023. At the same time, interest expenses also spike by 122%, from N13.194 billion to N29.305 billion in 2023.
This left Globus Bank net interest income at N37.793 billion at the end of 2023, up by 76.30% year on year from N21.432 billion in 2022.
Due to strong asset growth, the bank incurred higher impairment charge in the financial year 2023. According to its financial statement, Globus Bank recorded about 185% year on year growth in impairment charge which printed at N7.253 billion from N2.545 billion.
In 12 months, the bank grew net income from fee and commission by more than 39% to N4.340 billion from N3.177 billion in 2022. Its financial scorecard revealed further that there was a significant surge in net gain from financial instrument in 2023.
The bank saw its gain from financial instrument rising to N2.180 billion from less than 92 million in just 12 months. Similar pattern was seen in its other income line.
Details from Globus Bank financial statement revealed that other income surged from less than N118 billion to N6.349 billion in December, 2023. Reflecting an improved welfare of its workforce, Globus Bank employee benefits rose more than 106% year on year to N7.097 billion from N3.446 billion in 2022.
Amidst successive inflation surge in the country, the bank’s operating expenses adjusted to changing price index, up from N7.445 billion to N10.286 billion in 2023. All in, pretax profit climbed by 150% year on year from N9.374 billion to N23.431 billion at the end of financial year 2023.
Globus Bank total equity climbed 54% year on year from N53.807 billion to N82.612 billion in 12 months due to significant surge in retain earnings and other reserves. Its share premium also increased by more than 231% year on year to N15.776 billion in 2023.
In 2023, Globus Bank grew its total asset by about 55% year on year to N778.599 billion from N503.197 billion in the comparable year as management continues to pursue expansion and market deepening strategy.
The bank provides core banking services to about 100,000 clients comprising corporate, institutional, and retail customers through a network of branches, agency partnerships. It has deepened its digital footprint with increased digitalisation of platforms, enabling greater customer reach and market penetration Market, Regulatory Realities Stop 2023 Dividend Payment –Ecobank
