Some stakeholders have expressed optimism that Access Bank’s acquisition of Intercontinental Bank would reposition the bank and lead to improved earnings.
They told the News Agency of Nigeria in Lagos on Monday that they were anxiously awaiting the fourth quarter result of Access Bank after its acquisition of Intercontinental Bank.
Chairman, Association of Stockbroking Houses of Nigeria, Alhaji Rasheed Yussuf, said that the acquisition would translate to better profit for the bank and higher dividends to shareholders, if the merger was well managed.
“Stockbrokers are waiting till the next quarter to see the performance of Access Bank after merging with Intercontinental Bank,” he said.
Vice-President, ASHON, Mr Emeka Madubuike, said that the bank’s fourth quarter results would “douse the fears” of some shareholders.
“Everyone is adopting a wait-and-see attitude on the fourth quarter result of Access Bank,” he said.
Another stockbroker, Mr. Ajibola Majekodumi, said that investors were expecting better result than that of the third quarter.
He, however, expressed fears that the bank’s dividends to shareholders might decline at the end of the year due to the enlarged shareholder base.
A dealer with Marriot Securities and Investment Limited, Mr. Solomon Kugbe, said that market operators were expecting the bank’s full year profit to be in the region of N16bn.
NAN reports that Access Bank’s profit after tax in the third quarter of this year stood at N12.81bn and the expectation is that the bank will declare higher profit after the conclusion of its merger with Intercontinental Bank.
The Group Managing Director, Access Bank, Mr. Aigboje Aig-Imoukhuede, had said after the release of the third quarter result that the fourth quarter result would be better.
“With the recent acquisition of Intercontinental Bank, the fourth quarter will see us commence the implementation of our business combination plan and unlock the transformational potential of the acquisition,” Aig-Imoukhuede said.
Source: Punch/Agency Reporter
