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Wednesday, March 29, 2023

Access Bank Stock More Attractive Than Emerging Market, African Peers

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Access Bank Plc’s stock is more attractive than emerging market and Africa peers as the lender’s low price to earnings multiplies is an entry point for market participants who are looking for juicy investments to add to his portfolio.

This also gives investors long-term growth potentials in the market, and Access Bank’s large deposit base and solid assets means it is pivotal to the industry.

Access Bank has a price to earnings ratio of 2.0 times, which is the lowest in Nigeria’s banking industry, but the comparison across the globe is interesting.

Egypt’s Commercial International Bank has a price multiple of 8.7; Egypt’s National Bank, 6.40; Crédit AgriCole of Egypt, 6.3; Kenya’s Equity Group Holdings, 7.1; Kenya’s KCB Group Ltd, 5.8; C0-opertive Bank of Kenya, 5.80; Morocco’s Bank of Africa, 20.40; South Africa’s FirstRand Limited, 10.7; South Africa’s Standard Bank Group, 8.9; South Africa’s Capitex Bank Holdings Limited, and 28.9, according to data by Chapel Hill Denham Limited.

The report also shows: Argentina’s Macro-Banco- SA-B, 6.8; Grupo, Financiero Galicia-B, 8.7; Argentina’s Banco BBVA Argentina, 6.50; Brasil’s ITUA UniBanco Holdings S-Pref, 7.7; Hungary OTP Bank Plc 9.5; India’s ICICI Bank Plc, 20.2; India’s AXIS Plc, 16.5; Malaysia’s Malayan Banking BHD, 11.9; Pakistan’s MCB Bank Ltd, 5.8; Qatar’s National Bank, 15.30; Qatar’s Commercial Bank PSQD; Saudi National Bank,  21.50; Saudi’s  Riyad Bank, 13.5; First Abu Dhabi Bank PJSC, 13.5, and  Emirate NBD PJSC, 9.8.

Analysts at Chapel Hill Denham have retained their buy ratings on Access Bank with a target price of N14.28/share as they are sanguine that the recent acquisitions by the lender will magnify earnings.

The firm recently acquired First Guarantee Pension PFA as it seeks to tap into the lucrative pension industry.

“We believe that Access Bank can leverage its large customer base to accelerate the asset under management (AUM) growth of the newly acquired PFA,” said analysts at Chapel Hill Denham Limited.

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