Heritage Bank’s eventual collapse in 2024 was long in the making

Key takeaways

  • Heritage Bank emerged from the ashes of Société Générale Bank Nigeria (SGBN), which lost its license in 2006.
  • The bank rebranded and re-entered the market in 2012, later acquiring Enterprise Bank in 2014 to expand its reach.
  • Despite its growth, financial instability and poor loan performance plagued its operations.
  • By 2021, it recorded a staggering 81.2% non-performing loan (NPL) ratio.
  • Regulatory pressures mounted, leading to the revocation of its banking license in June 2024.

Heritage Bank’s story is one of ambition, expansion, and financial distress. Originally operating as Société Générale Bank Nigeria (SGBN), it lost its license in 2006 before rebranding as Heritage Bank in 2012. The bank made a bold move in 2014 by acquiring Enterprise Bank, significantly increasing its footprint in the industry. However, the rapid expansion came with growing financial burdens.

By 2021, cracks in Heritage Bank’s foundation became evident. It posted an ₦82.9 billion loss, largely due to a non-performing loan ratio of over 81%, one of the highest ever recorded in Nigeria. The Central Bank of Nigeria (CBN) closely monitored the situation, and by 2024, it was clear the bank was no longer viable. With its license revoked, Heritage Bank became another cautionary tale of how mismanagement and financial instability could bring down even a once-promising institution.

Source:

CBN, Media reports

Period:

1977-2024
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