LAGOS - United Bank for Africa said on Wednesday it had received approval from the central bank to transfer its subsidiaries into a newly-formed holding company, in line with regulatory requirements to separate core lending from other businesses.
The central bank two years ago scrapped the universal banking model and directed lenders to sell their stakes in non-banking subsidiaries or adopt a holding company structure.
"We have received approval from the central bank to operate a holding company structure. We are working on the scheme document and we intend to finalise the structure by the end of the year," Chief Financial Officer Ugo Nwaghodoh told an investor conference call.
UBA's announcement follows Stanbic IBTC Bank the local unit of South Africa's Standard Bank who last week said it will seek approval from shareholders to form a holding company next month.
The UBA banking group currently operates in 19 African countries with interest in real estate and asset management.