A mega primary mortgage bank (PMB) that is expected to introduce a major boost in the Nigerian mortgage market emerged Wednesday as the shareholders of Trustbond Mortgage Bank Plc today approved the merger of the bank with First Mortgages Limited.
Both Trustbond and First Mortgages are major players in the Nigerian mortgage market. Trust bond is a first generation primary mortgage bank operating with national licence, meaning that its capital base is in excess of N5 billion.
First Bank Mortgages is also an old generation PMB incorporated in 2003 by the CBN to carry out mortgage business in 2004.
This proposed merger of the two banks, which signposts what is to be expected in the struggling mortgage market in the months and years ahead, will be birthing a bigger and stronger primary mortgage bank that may change the narrative in the mortgage industry.
The shareholders at a Court-Ordered Meeting in Lagos on Wednesday approved the merger as proposed by the management of the bank.
They also approved the transfer of the assets and liabilities of First Mortgages to Trustbond Mortgages; the change of the name of the bank to First Trust Mortgage Bank, and to put the share capital of Trustbond at four shares to 23 shares of First Mortgages.
Though the shareholders welcomed the merger as a good move, they had their concerns regarding what becomes of the staff of their bank and their shareholding.
Etiwe Uwa, chairman of the bank, assured that there would be no job losses, adding that at four shares to 23 of First Mortgages, they were the gainers.
Uwa assured further that the merger would come with immense benefits, including value addition/creation, cost efficiency and innovative technology.
He explained that the new bank would be repositioned through continuous improvement in advanced cutting edge technology that will enhance access to innovative mortgage bank products.