Stanbic IBTC Bank Plc, the Nigerian unit of Standard Bank Group, has disclosed that it willl cut down its share capital by about 7.5 billion naira ($46.7 million) due to the cancellation of 15 billion out of its 18.75 billion ordinary shares.

The bank’s CEO, Sola David-Borha, revealed the bank’s stance in a speech delivered in Lagos on Thursday. According to David-Borha, shareholders will receive the excess capital.

She said: “The holding company will have 10 billion issued and fully paid up shares of 50 kobo (0.31 cents). Shareholders of the bank will become shareholders of Stanbic IBTC Holdings with the same proportionate ownership, save for adjustments for fractional shares, which will be converted to cash”

This action will make Stanbic IBTC Bank a wholly owned subsidiary of Stanbic IBTC Holdings Plc; it will then approach the Central Bank of Nigeria (CBN) for a commercial banking license.

According to the banks CEO, shareholders will benefit from the entire aspect of the new business structure. Also, retail depositors of the bank will not be at any risk that could be associated with Stanbic IBTC Group’s non-banking activities.

Furthermore, she explained that all Stanbic IBTC customers, and those of its subsidiaries, will have access to services being provided by other subsidiaries.

All of the bank’s shares in the five subsidiaries will be transferred to Stanbic IBTC Holdings Plc.

The subsidiaries are Stanbic IBTC Bank, Stanbic IBTC Pension Managers Limited, Stanbic IBTC Asset Management Limited, Stanbic IBTC Stockbrokers Limited, Stanbic IBTC Trustees Limited, Stanbic IBTC Ventures Limited,Stanbic IBTC Capital Limited and Stanbic IBTC Investments Limited.