By Kelechukwu Mgboji InvestAdvocate
Lagos (INVESTADVOCATE)-Equity investors in the shares of Nigeria’s largest Tier 1 retail bank, Access Holdings Plc, will be in for sustainable windfall of commensurate returns on investments by the year 2027 as the Group targets N10 trillion profit in its new phase of consolidation.
After decades of global expansion through series of strategic mergers and acquisitions across Africa and beyond, leadership of the banking group said the time has come for shareholders to smile to the banks with improved and sustainable dividends payment as well as appreciation in share capital valuation.
Disclosing this profit target during a presentation of the “Facts Behind the Rights Issue” by the bank in Lagos on Tuesday, the Chief Executive Officer, Roosevelt Ogbonna, said the leadership have kept all previous promises, and would also accomplished this latest promise.
According to him, the projection underscored the company’s commitment to becoming a global banking leader and Africa’s gate way to global trade after decades of expansionary growth investments marked by series of strategic mergers and acquisitions expected to yield more robust financial performance in the coming years.
“We’ve positioned our Group as one of the most respected banks globally, focusing on superior service across three continents and spanning 22 countries, including the UAE and the UK. And Access Holdings US is coming”, Roosevelt told a sprawling capital market community at the Lagos trading floor.
Earlier in his address, the Group Chairman and founder of Access Holdings Plc, Mr. Aigboje Aig-Imoukhuede, said it was the wish of the management and board of the company to ensure that the shareholders who have stood beside and behind them through thick and thin get deserving reward for their loyalty and support, stressing that no shareholders would be left behind.
Recalling the growth trajectory of the bank over the years, he stated the bank had kept all promises about growth projections made in the past, and had no doubt the new leadership would deliver on its promise for improved returns on investment to supportive shareholders.
He said: “Our rights issue is not just a financial exercise but a continuation of Access Bank success story. Our capital raising exercises are promises kept, that’s what I call it.
“In 2002, the promise was that in five year’s time, we would move from 70 to top 10. I believe, the promise was kept.
“In 2007, the promise was that in five year’s time, we would go from top 10 to top 5. That ended in 2012. I thank God as I retired in 2013, we were mumber4. I think that was promise kept.
“As I retired, I helped my brother and colleague, Herbert, tell the market that in five year’s time, Access Bank would be top 3. And in 2018, it was top 3. That was promise kept.
“Herbert announced in 2018, that in five year’s time, we would be top 1. And by 2022, it was so. These were promises kept.”
Continuing, he said “Bolaji and Roosevelt Will be announcing the promises they intend to keep. The difference between the new leadership today and us (Wigwe and myself) is that Bolaji and Roosevelt are better trained and more capable to manage the bank than Wigwe and I were when we were managing the bank. So, I can go to bed on their promise to deliver better returns because they are well equipped, tested and capable to deliver,” the founder of Access Bank assured investors.
Under the Rights Issue, the Holding Company is offering to existing shareholders a total of 17,772,612,811 (Seventeen billion, seven hundred and seventy-two million, six hundred and twelve thousand, eight hundred and eleven) ordinary shares of N0.50 each at N19.75 per share on the basis of 1 (one) new ordinary share for every 2 (two) existing ordinary shares held as of Friday, June 7, 2024, which has received regulators’ approval.
The capital raise followed Central Bank of Nigeria’s (CBN) directive to deposit money banks to increase their capital base.
The CBN had on March 29, 2024 announced an upward review of minimum capital requirements for commercial, merchant and non-interest banks.
The capital base for commercial banks with international licence was adjusted to N500 billion, while the minimum capital requirements for national and regional licence holders were pegged at N200 billion and N50 billion, respectively.
With a capital base of N251.81 billion based on its audited financial statement for 2023, Access Bank is raising over N351billion to shore up its capital requirement above the capital requirement for international licence.
