Access Bank Plc has continued to build on its pan-Africa legacy. On Tuesday, the bank announced on the Nigerian Exchange Limited (NGX) that it has acquired 78.15% shareholding in African Banking Corporation of Botswana Limited (BancABC Botswana).
This is following other major investments that the Nigerian bank has made across Africa recently.
Speaking on the acquisition, Company Secretary, Access Bank, Sunday Ekwochi, said in a statement that BancABC Botswana is the fifth largest bank in Botswana with strong financial standing that will enhance growth in its local market.
“The new acquisition will form part of the Bank’s nexus for trade and payments in Southern Africa and the boarder COMESA trade region. BancABC Botswana’s achievements in the retail banking space will provide an opportunity for the bank to deploy its best-in-class digital platforms and product suites to the benefit of BancABC Botswana’s customers and enable it to complete strongly across its core business segments.”
The bank’s share price added N0.15 to close trading at N9.60 on Tuesday. Access Bank’s earnings have grown by 12.8% per year over the past five years, buoyed by major expansion to other African markets.
The CEO of Access Bank, Herbert Wigwe said such acquisition is gearing the bank up to become the most respected African bank.
“We are pleased with the successful conclusion of this transaction which will provide significant synergies by combining BancABC Botswana’s strong retail banking operation with Access Bank’s wholesale banking capabilities.
“It will also strengthen the quality of earnings through revenue diversification and growth in the corporate and SME banking segments for BancABC Botswana. The combination is another step towards out broader vision of becoming the World’s Most Respected African Bank,” he said.
June 2021 Half year financial report of Access Bank, shows the company’s asset value has hit N10.06 trillion, a 16% increase from its last quarter 2020 report, making it Nigeria’s largest bank by asset. The growth has been significantly spurred by investments outside Nigeria.
Access Bank has subsidiaries across Sub-Saharan Africa and Europe, providing financial and banking services. The bank’s subsidiaries include Access Bank (Gambia) Limited, Access Bank (Sierra Leone) Limited, Access Bank (Zambia) Limited, Access Bank (UK) Limited, Access Bank (Ghana) Limited, Access Bank (D.R. Congo), Access Bank (Rwanda) Limited, Access Bank (Guinea) Limited, Access Bank (Kenya) Limited and Access Bank (Mozambique) Limited.
Last year, Access Bank got the green light from the Central Bank of Nigeria (CBN) to become a HoldCo (holding company). It has ever since then, intensified its expansion in Sub-Saharan Africa through acquisition of banks and other financial services.
Wigwe said Access Bank is focused on building the scale needed to become a leading African bank, one that leverages experience, talent base and key stakeholder partnerships to drive sustainable impact and profitability.