Three-Year-Old Nigerian Bank Overtakes First Bank, Union Bank in CBN Recapitalisation Race
- Three-year-old PremiumTrust Bank has met the N200 billion recapitalisation target of the Central Bank of Nigeria (CBN)
- The bank announced the feat after completing its rights issue and private placements, which received CBN’s nod
- PremiumTrust Bank joins eight Nigerian banks which have scaled the CBN’s recapitalisation hurdle
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
PremiumTrust Bank, which began operations in 2022, has met the N200 billion capital requirement for commercial banks with a national licence, seven months to the deadline.
The Central Bank of Nigeria announced a new recapitalisation target of N500 billion for Nigerian banks with an international licence, N200 billion for national license, N150 billion for non-interest banks, and N50 billion for regional banks.
Source: Twitter
PremiumTrust Bank scales CBN hurdle
The apex bank set the deadline for the financial institutions to recapitalise by March 31, 2026.
PremiumTrust Bank exceeded the new capital requirement after finalising its rights issue and private placement, gaining CBN’s endorsement, the bank said.
The bank joins Wema Bank and Stanbic IBTC as the only three banks with a national licence that have scaled the CBN hurdle ahead of March 31, 2026.
The move shows the bank’s ambitious plan to consolidate in a sector dominated by robust players, some of which are still battling to meet the apex bank’s target.
PremiumTrust Bank joins the elite list
CBN’s directive to banks to recapitalise aims at boosting balance sheets against rising credit, foreign exchange instability, and inflation.
A prior report by Legit.ng disclosed that eight banks, including Access Bank, Zenith Bank, Stanbic IBTC, Wema, Providus, Jaiz Bank, Lotus Bank, and Greenwich Merchant Bank, have since met the deadline.
With the addition of PremiumTrust Bank, the number has swollen to nine.
PremiumTrust Bank’s Chief Executive Officer (CEO), Emmanuel Efe Emefienim, said that exceeding the N200 billion capital requirement is a defining moment for the new financial institution.
CBN directive to shrink number of banks?
The bank stated that the capital buffer will allow it to increase lending to infrastructure and the agriculture sector, which the federal government identified as essential for growth.
The financial institution’s growing balance sheet has attracted the attention of big industry players.
The CBN’s recapitalisation directive echoes a 2024 order under ex-CBN governor, Chukwuma Soludo, which forced banks to raise N25 billion capital from N2 billion.
The consolidation reduced the number of banks from 89 to 25, allowing for stronger players to emerge.
PremiumTrust Bank’s surging financials
“As Nigeria’s fastest-growing bank, we are uniquely positioned to not only lead the sector but to continue delivering outstanding value and growth for our stakeholders,” PremiumTrust Bank boss added.
The bank’s assets tripled in 2024, reinforcing its claims as Nigeria’s fastest-growing bank.
The lender’s total assets exceeded 232% to N1.03 trillion in 2024, from N311 billion the previous year.
Source: Getty Images
BusinessDay reports that the bank’s interest income rose 252% to N106.5 billion from N30 billion, while profit after tax increased 326% to N39.8 billion, relative to N9.3 billion in 2023.
Another Nigerian bank meets CBN recapitalisation target
Legit.ng earlier reported that Jaiz Bank Plc has joined the growing list of Nigerian banks which have crossed the CBN recapitalisation target.
At the last count, about eight Nigerian banks have crossed the recapitalisation hurdle, a previous Legit.ng report said.
Jaiz Bank, one of Nigeria’s non-interest banks, said it plans to raise its capital base to N150 billion, confirming compliance with the CBN’s recapitalisation directive.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
