NBIC/GNCB integration process should be completed within next eight weeks
- Hartford
Stabroek News
March 23, 2003
Managing Director of Republic Bank Limited Ronald Hartford says that its Guyana subsidiary, the National Bank of Industry and Commerce Limited (NBIC) is expected immediately to begin the process of integrating with the Guyana National Co-operative Bank (GNBC) and should complete the exercise within the next eight weeks.
The NBIC formally acquired the GNCB on March 15, ending the latter’s 33-years as a state-owned commercial bank. It also represents the last privatisation in the financial sector.
GNCB had been experiencing losses for years due mainly to a large non-functioning loan portfolio.
According to a release through King Advertising Limited, NBIC’s existing branch network has the capacity to absorb four of GNCB’s six branches in areas where the Republic subsidiary is already represented. The remaining two GNCB branches at New Amsterdam and Vreed-en-Hoop as well as a strategically located branch at the General Post Office in Georgetown are expected to be added to NBIC’s branch network.
The managing director of Republic Bank in Trinidad said further that the transaction involved NBIC acquiring a business with net assets of $2 billion (TT$61 million) for a price of about $2.7 billion (TT$82 million). The total assets acquired were approximately $16 billion (TT$485 million) increasing NBIC’s market share in Guyana to 45%. Included in the assets acquired is a Government of Guyana Long Term Debenture which replaced GNCB’s loan portfolio that was retained by GNCB, the release stated.
And it quoted Hartford as saying that the acquisition of GNCB’s business represents an opportunity for NBIC to consolidate its position as industry leader in terms of asset size, branch network, market share and ABM network in the short term. It will also leverage the Republic Bank Group’s investment in Guyana and increase profitability in the medium and long term, he said.
