Rescued Nigeria banks' value at risk: Standard Bank

30 Aug, 2010

The longer the process of selling Nigeria's rescued banks lasts, the less attractive they could become, said the head of South Africa's Standard Bank, which is interested in buying one.
Nigeria's central bank has received bids for four of nine banks rescued in a $4 billion bailout and is setting up an asset management company to buy their non-performing loans, but has yet to say when the lenders would be sold.
Jacko Maree, group chief executive of Africa's largest bank, said it had expressed interest in more than one of the rescued banks, but the value of the banks was in danger of eroding over time.
"You have to get more careful the longer things go on. The rescued banks will be losing customers and their brands suffering while their costs stay the same," he told Reuters in an interview on Friday in Johannesburg.
Standard Bank has a presence in Nigeria through Stanbic IBTC and Maree reiterated he would like another bank in Nigeria, where 150 million people and Africa's biggest energy industry make it one of the continent's hottest prospects.

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