Associated Discount House gets CBN’s approval for merchant banking licence

Associated Discount House Limited (ADH) has been granted final approval for a full merchant banking licence by the Central Bank of Nigeria (CBN).

The licence approval follows the divestment from ADH by Access Bank plc and Wema Bank plc, in line with the apex bank’s directive to commercial banks on divestment from non-bank subsidiaries.

The divestment was announced at the company’s 21^st AGM recently, where Aigboje Aig-Imoukhuede, chairman of the board of directors, also announced the retirement of those directors representing the member banks. The directors retiring with Aig-Imoukhuede are – Herbert Wigwe, Olusegun Oloketuyi and Nurudeen Fagbenro.

At the same meeting, the shareholders appointed Babatunde Folawiyo, Evelyn Oputu and Adamu Atta as non-executive directors of the company. Babatunde Folawiyo takes over from Aig-Imoukhuede as the chairman of the company.

In his comments, the outgoing chairman expressed gratitude to God, the shareholders and board members for the opportunity to serve the company and noted they were handing over a strong financial institutions with the cleanest balance sheet in the industry.

According to him, “the acquisition of a merchant banking licence marks an important step in the evolution of Associated Discount House to provide a broader range of services to our clients and participate more broadly in the revitalisation of Nigeria’s capital markets. I am delighted to be handing over to a new chairman of the calibre of Folawiyo and look forward to watching the company grow and fulfil its potential over the coming years.”

ADH had retained the year 2014 Augusto Rating and GCR of A- rating for the company. The company also made a profit after tax of N1.61 billion for the year and grew its shareholders’ fund to N16.52 billion.

 

HOPE MOSES-ASHIKE