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Access Holdings made a pre-tax loss in it Rest of Africa operations in 2022. By the end of last year there was a 1,600 percent jump in reported Profit before income tax for Rest of Africa to N100.75 billion ($72 million).
The late CEO of Access Holdings made a major push for international expansion as part of a strategy to diversify earnings reduce volatility and dependence on its largest market Nigeria.
By the end of 2027, its flagship Access Bank was weighing expansion to 26 countries through mergers and acquisitions, according to a presentation posted on the Nigerian Exchange.
“Across Africa, there is an opportunity for Access to extend financial services to the unbanked and deepen its financial services offerings to banked customers,” the bank said.
Access expects revenue from its home market to decline to 52% by 2027, down from 82% in September 2022, because of its proposed geographical expansion while the share of profit before tax (PBT) from Nigeria will probably drop to 33% from 63%, it said in five-year strategy presentation posted on the website of the Nigerian Exchange.
From its Full Year 2023 financials there is progress on some of the stated targets, according to MoneyCentral’s analysis.
Revenue from Nigerian operations fell to 80.78% in 2023 from 81.45% in FY 2022, while PBT share from Nigeria was 72.5% in FY 2023, down from 95.5% in 2022 FY.
Share of Rest of Africa revenues rose to 15.5% or N402.86 billion in FY 2023, up from 14.89% in 2022, while share of PBT in Rest of Africa jumped to 13.82% in FY 2023, from negative contributions in FY 2022.
Access Holdings made a loss of N6.7 billion from its rest of Africa operations in 2022.
Access recent acquisitions
Angola
Access Bank Plc recently acquired Finibanco Bank in Angola on the 30th of June 2023 as agreed between both parties. The bank however obtained control of the entity on 5th September 2023 by virtue of its ability to meet the control requirement of ownership of up to 66% as stipulated in the agreement.
The acquisition involved the Bank acquiring 99.2% of the issued share capital of Finibanco in exchange for cash of N31,546,835,859 (Thirty-one billion, five hundred and forty-six million, eight hundred and thirty-five thousand, eight hundred and fifty-nine naira) used to pay off the shareholders of former Finibanco.
Uganda
On the 17th of January 2024, Access Bank entered into a definitive agreement with Finance Trust Bank Uganda to acquire 80.88% shareholding in the Ugandan entity.
Kenya
On the 20 March 2024, Access Bank Plc entered into a binding agreement with Kenyan-based KCB Group Plc (“KCB”) for the acquisition of the entire issued share capital of National Bank of Kenya Limited (“NBK”) from KCB. KCB is also the holding company of KCB Bank Ltd, Kenya’s largest commercial bank.
Zambia
On the 5 of Jan 2024, Access Bank Zambia, a subsidiary of Access Bank Plc, completed the acquisition of African Banking Corporation Zambia Limited, trading as Atlas Mara Zambia. Atlas Mara Zambia is now a wholly owned subsidiary of Access Zambia.
FY 2023 earnings
Access Holding’s a tier-one Nigerian lender reported a massive 300% surge in after-tax profit to N612.49 billion in its Full Year 2023 results, the last period for which late CEO, Herbert Wigwe was at the helms.
Access saw growth at both net interest incomes of N555.8 billion and net fee income of N207.7 billion revenue lines while Fair value gains on non-hedging derivatives, equity investments and Fixed income securities brought in a further N512.3 billion.
Earnings Per Share (EPS) surged to N17.23 in FY 2023, compared to N4.29 in 2022.
Access Holdings will pay a final dividend of N1.80 Kobo (One Naira, Eighty Kobo) for every ordinary share of N0.50 Kobo each, subject to appropriate withholding tax (bringing the Total Dividend for 2023 Financial Year to N2.10 Kobo (Two Naira, Ten Kobo).
Dividends will be paid to shareholders whose names appear on the Register of Members as at the close of business on April 10, 2024.
Access Holdings’ business segments include lending, consumer lending, payment services, insurance brokerage and pension funds administration.
The banking business, payment services, insurance brokerage and pension fund administration are currently in operation while the consumer lending is at advanced stage of licencing and operational readiness as at the end of the reporting year (2023).
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