The Financial Services Authority (FSA) of the United Kingdom (UK) has licensed Intercontinental Bank (UK) Plc, a subsidiary of Intercontinental Bank Plc, as a full-fledged bank offering wholesale banking services in the United Kingdom. The bank is authorised to perform trade services business, including letters of credits, collections and guarantees. Other aspects of its business include structuring and funding of structured trade and project finance transactions as well as arrangement of funding for group entities.

A seasoned international banker, Mr. Marcus Hopkins, has been appointed chief executive, while another international banker, Mr. Richard Wailes, will serve as Chief Operating Officer.

Hopkins was an Executive Director and Head of Capital Markets for Moscow Narodny Bank. Prior to this, he was the Head of Emerging Markets for HSBC Bank in the UK, while Wailes functioned in similar role at Banacci Group in London prior to its acquisition by Citigroup.

The new subsidiary has a seven-man board including three directors nominated by the sole shareholder— Intercontinental Bank Plc. These are the Group Chairman, Dr. Raymond Obieri; the Group Chief Executive, Dr. Erastus Akingbola; and Dr. Olutoyin Phillips, a non-executive director.

Others include UK (independent) non-executive directors, Mr. Chris Duncan; a former client risk director at Barclays Group and Peter Sullivan who was Chief Executive for Standard Chartered Bank’s Asian operations until the end of December 2007 and has also been the Group Chief Executive for Standard Chartered Bank’s operations in Africa.

According to the Group Chief Executive, Intercontinental Bank Plc, Dr. Erastus Akingbola, Intercontinental Bank (UK) Plc, located in 36 Leadenhall Street, a prestigious banking hub in the heart of London, will enable Nigerians and other nationals as well as corporate organisations in and outside the UK carry out seamless financial transactions in UK and anywhere in the world, adding that the UK subsidiary will also serve as base for further future geographic expansion.

“London will act as a strategic addition to Intercontinental Bank’s global expansion drive providing international investors with access to investment opportunities in African continent and other parts of the world.”

The bank currently operates from more than 300 business offices in Nigeria with a subsidiary in Ghana, the Intercontinental Bank (Ghana) Plc, which was established in 2006 with eight business offices in key commercial centres of Ghana. Dr. Akingbola said more subsidiaries would open soon to exploit identified business windows in other parts of Africa, America, Europe, Middle East and Far East.

The financial results for the year ended February 2008 recently published by the bank saw its deposit and assets base rising to a new industry high.

The deposit base soared to N1.05 trillion, an increase of 126 per cent from N468 billion in the previous year, while total assets also recorded a quantum leap to N1.7 trillion, representing a growth of 108 per cent from N823 billion, thus making the bank the first to hit trillion Naira mark in deposit and also giving it number one position in total assets.

Banking industry analysts attribute the unprecedented growth in the bank’s deposits portfolio to robust customer confidence. The customer base has been on the rise since post consolidation.

The bank also recorded a growth in gross earnings which stood at N173.5 billion, an increase of 99 per cent over the N87.4 billion recorded in the previous year. Profit before tax grew by 102 per cent to N45.6 billion, as against N22.6 billion in 2007, while the capital base rose to N200 billion from N157 billion.