Five Nigerian bank holding companies may need to raise a combined N971.764 billion in equity capital to comply with the Central Bank of Nigeria’s proposed capital requirements, Renaissance Capital Africa estimates.
The affected holding companies are Access Holdings Plc, FCMB Group Plc, First HoldCo Plc, Guaranty Trust Holding Company Plc and Stanbic IBTC Holdings Plc.
Renaissance Capital estimates that Access Holdings would require the largest capital raise of N656.037 billion, followed by First HoldCo with N135.033 billion, FCMB with N112.836 billion, GTCO with N56.019 billion and Stanbic with N11.839 billion.
The estimates are based on a base-case scenario in which the draft guidelines are implemented in their current form. Renaissance Capital also assumes that the CBN would permit banks to recall excess capital released as they downgrade their international banking licences to national licences, provided the capital retained within the national banking subsidiary is sufficient to cover
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