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Tag: Access Bank

  • Access Bank’s First Post-Merger H1 PBT Hits N74.1bn, Declares 25k Interim Dividend

    Access Bank Group’s audited H1 results released to the Nigerian Stock Exchange (NSE) on Thursday showed Gross Earnings of N324.4 billion, up 28% from N253.0 billion in the corresponding period of 2018.

    The growth in gross earnings was driven by 46% increase in interest income on the back of continued growth in the Bank’s core business and 22% non-interest income underlined by strong recoveries.

    The Bank delivered a Profit before Tax (PBT) of N74.1 billion, a 62% increase from N45.8 billion recorded during the same period in 2018.

    Profit after Tax (PAT) grew by a similar margin from N39.6 billion in 2018 to N63.01 billion in H1 2019.

    Similarly, the Bank posted 34% growth in Operating Income to N202.3 billion from N151.4 billion in 2018. Total Asset was up 31% at ₦6.48 trillion as at June 2019 in comparison to ₦4.95 trillion in December 2018.

    Access Bank’s Capital Adequacy Ratio (CAR) remained solid at 20.8%, well above the regulatory minimum.

    Commenting on the result, Group Managing Director/CEO, Herbert Wigwe said, “Access Bank’s performance in the first half of the year reflects a sustainable business model coupled with effective execution as we make solid gains towards the achievement of our strategic goals”

    Following the release of the half year results, the Bank also declared an interim dividend of 25k to its shareholders. “Our focus on retail gained momentum during the period, as continued investments in our channels platform resulted in a 29% contribution to gross fee and commission income, up 92% from the corresponding period in 2018. The strong retail contribution demonstrates the effectiveness of our continued drive around low-cost deposits, on the back of an innovative digital platform. Asset quality improved as guided, to 6.4% on the
    bank of a robust risk management approach. This is expected to trend into the future as we strive to hit and surpass the standard we had built in the industry prior to the merger. Similarly, liquidity ratio improved year on year to 49.7%, reflecting deliberate steps to optimise our balance sheet in order to ensure the group’s liquidity position remains robust.” Wigwe added.

    “Going into the second half of the year, our focus is on consolidating momentum and driving access to financial inclusion through our various agency initiatives. Additionally, we will remain disciplined in our efforts to deliver enhanced shareholder value, as we continue to realise the synergies from our newly expanded franchise” he noted.

  • Access Bank partners Lagos State Government to launch N10billion loan portfolio for women

    Access Bank partners Lagos State Government to launch N10billion loan portfolio for women

    Africa’s largest retail bank, Access Bank Plc., yesterday collaborated with the Lagos State Employment Trust Fund (LSETF) to launch the LSETF W Initiative aimed at economically empowering women in Lagos State.

    The initiative, which has a total loan portfolio of N10billion, is targeted at women-owned businesses (with at least 50% ownership share) in operation for 1-5 years.

    While delivering his address, Access Bank Group Managing Director, Herbert Wigwe said: “Access Bank is fully committed to bridging the existing gap and provide women with the support they need to successfully implement their business ideas”.

    “Looking at the number of women present here today, I don’t think the initial N4billion we set aside to help women will be sufficient and based on that, the initiative fund will be increased to N10billion. Through partnerships with organisations such as LSETF, Access Bank will continue to help women break boundaries, reinvent the status-quo and take advantage of opportunities provided by technology and quality financial systems to make significant impact on the economy of Lagos State and Nigeria as a whole,” Wigwe added.

    Delivering his keynote address, the Lagos State Governor, Babajide Sanwo-Olu expressed his delight at the timeliness of the initiative, including its immense opportunities for residents in the state.

    “The LSETF W Initiative has come at a very critical time for our economy, as we believe that women have a great role to play towards achieving the developmental results that we seek in our state,” said Sanwo-Olu.

    “It is important to leverage on the accumulation of resources built through relationships, trust, goodwill, and influence between the State and other private sector stakeholders to make things happen quickly. We are very proud of Access Bank as they continue to make available their financial and business expertise as well as their funds towards ensuring that our women are given adequate access to resources that will aid their successes,” he added.

    Access Bank has a long history of supporting female empowerment, offering over 8,000 personal loans valued at over N10.6billion since 2018, with over 330 loans given to women in business valued at over N16.6billion.

  • Access Bank speaks on 'acquisition' of Union Bank

    Earlier on Monday, July 8, 2019, there were reports on social media that Access Bank Plc was making moves to acquire Union Bank of Nigeria Plc.
    This was coming three months after Access Bank completed its merger with Diamond Bank, which also first started as a rumour in late 2018, but was refuted by the former.
    Access Bank, one of the five tier-one financial institutions in Nigeria, is known for expanding its operations by acquiring other banks.
    In 2011, the lender completed the acquisition of Intercontinental Bank, which was one of the banks having huge prospects before the deal.
    Eight years later, it completed a merger and acquisition agreement with Diamond Bank, a tier-two company believed to be undergoing tough time before the deal.
    Last month, Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, while rolling out his five-year plan, announced that there would be another recapitalisation exercise in the banking industry in the country.
    This announcement made observers to start making assumptions of banks that may not survive this latest raising of capital base by the CBN to an amount yet to be disclosed. At the last exercise, the apex bank raised the capital base from N2 billion to N25 billion.
    The latest disclosure by Mr Emefiele also brought about possible mergers in the sector, with some speculating banks that may possibly merge or be acquired by some bigger banks.
    On Monday, there were rumours that Access Bank was already in talks with the management of Union Bank on the possibility of doing business together.
    However, Access Bank, in a disclosure to the Nigerian Stock Exchange (NSE), denied being in talks with Union Bank.
    “Our attention has been drawn to recent social media report of Access Bank being engaged in talks to acquire Union Bank of Nigeria.
    “The Nigerian Stock Exchange and the general public are hereby advised to discountenance such rumour as same is devoid of truth.
    “The bank is not engaged in any discussion with Union Bank of Nigeria or any of its shareholders regarding any such transaction,” the notice signed by the company secretary, Mr Sunday Ekwochi said.

  • Court okays Access Bank’s takeover of Don Etiebet’s property over N2.4bn debt

    The Federal High Court in Lagos on Monday refused to grant an application by a former Petroleum Minister, Chief Don Etiebet’s company, seeking to stop Access Bank Plc from taking over his property known as Etiebet’s Place on Mobolaji Bank Anthony Way, Ikeja, Lagos, Southwest Nigeria.

    Justice Mohammed Liman in his ruling on the application, also refused an application for stay of execution of a December 17, 2018 judgment of Justice Ibrahim Buba, which empowered Access Bank to take over the property located on Mobolaji Bank Anthony Way, Ikeja, Lagos, in the name of Etiebet’s company, Obodex Nigeria Limited.

    The bank had dragged Obodex Nigeria Limited before the court over an alleged debt said to be in the tune of N2.4 billion.

    The firm had challenged the court’s jurisdiction to hear the suit.

    Justice Buba, last December 17, dismissed the firm’s objection and ruled in the bank’s favour.

    Access Bank subsequently took over Etiebet’s Place and appointed a Senior Advocate of Nigeria, Mr. Kunle Ogunba, as receiver/ manager to manage the property towards recovering the alleged debt.

    Dissatisfied, Obodex Nigeria filed an appeal as well as an application for stay of execution of the judgment.

    Through its lawyer, Mr. Dele Adesina (SAN), it sought an order restraining Ogunba and his privies or assignees from, “advertising or offering for sale, selling, mortgaging, transferring, alienating or otherwise interfering with the applicant’s equitable right of redemption on the property situated and lying at 21 Mobolaji Bank Anthony Way, Ikeja, Lagos, also known as Etiebet’s House, pending the hearing and final determination of the applicant’s appeals.”

    While urging the court to grant his application, Adesina said, “I urge your Lordship to grant a stay of proceedings and stay of execution so that we’re not foisted this court with a fait accompli.”

    But Access Bank, through Ogunba, opposed Obodex’s application, saying it was “totally misconceived”.

    He said the receiver-manager was already in control of the applicant’s property, hence the application was belated.

    “The defendant wants to eat his cake and have it. It’s very reprehensible. They admitted the debt and pleaded for time. They signed a mortgage. We urge your Lordship to discountenance their application,” Ogunba said.

  • Court seals Access, Diamond Banks merger

    Court seals Access, Diamond Banks merger

    The Federal High Court (FHC) has sanctioned the approved scheme of merger between Access Bank Plc and Diamond Bank Plc, the final seal that effectively brings the merger of the two commercial banks into effect.

    Consequently, the Nigerian Stock Exchange (NSE) yesterday suspended trading on the shares of Diamond Bank Plc, which will be dissolved without being wound up and subsequently delisted from the Exchange.

    The court sanction, statutorily the final phase of a pre-merger process, which was filed at the NSE, affirmed all the key headlines of the transactions, which had earlier been approved by shareholders of the two banks, the Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC).

    The Nation had on Monday reported that financial regulatory authorities had given final approvals to the scheme of merger, paving the way for submission to a Federal High Court for the final court sanction.

    Under the terms of the merger, Diamond Bank will transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank shall be cancelled and Diamond Bank shall be dissolved without being wound up. In exchange, Diamond Bank’s shareholders shall receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.

    Access Bank will be the post-merger entity while its Group Managing Director, Herbert Wigwe will continue to lead the post-merger management as chief executive. The business combination is expected to leapfrog post-merger Access Bank as Nigeria’s largest bank by total assets and one of Africa’s largest retail banks.

    The NSE explained that the full suspension on Diamond Bank, which took effect yesterday March 20, 2019, was sequel to the court sanction, which brought the business combination into effect on Tuesday March 19, 2019.

    “The suspension is required to prevent trading in the shares of the bank in order to determine the bank’s shareholders who will qualify to receive the Scheme consideration,” NSE stated.

    The NSE noted that the scheme of merger will result in the delisting of Diamond Bank Plc from the Daily Official List of the Exchange.

    Directors and management of the banks said the merger will create significant values for all stakeholders, underlining the inherent synergies and value accretion in the business combination.

    The business combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries, 3,100 Automated Teller Machine (ATM), more than 33,000 Point of Sales (PoS) terminals, 27 million clients and more than 10 million mobile customers.

    Diamond Bank and Access Bank share many of the same areas of focus, including women, youth, entrepreneurs and the financially excluded and will be able to further develop their positioning and market leadership in these growth sectors. Diamond Bank’s corporate customers will also be able to benefit directly from Access Bank’s corporate expertise in trade finance, cash management, treasury and corporate finance.

    Group Managing Director, Access Bank Plc, Mr Herbert Wigwe, said the two banks share several common values and technologies that make the business combination a seamless one.

    According to him, the merger of the banks will create significant opportunities and benefits to customers, shareholders, staff and other stakeholders.

    He noted that the combination of Diamond Bank’s strong retail customer franchise and Access Bank’s proven risk and capital management expertise will create a post-merger bank with strong value creation potential.

    He pointed out that while the merger will lead to 19 per cent shareholding dilution, the business combination accelerates Access Bank’s plan to become a leading bank in Nigeria and gateway to Africa.

  • Our N95bn Green Bond fully subscribed – Access Bank

    Access Bank Plc. said on Monday that a five-year Fixed Rate Senior Unsecured N15 billion Green Bond, the first climate bond to be issued in Africa, had been fully subscribed.

    The bank’s Group Managing Director, Mr Herbert Wigwe, stated this at the bond-signing ceremony in Lagos.

    Green bond is a bond specifically earmarked to be used for climate and environmental projects. It is typically asset-linked and backed by the issuer’s balance sheet, and are also referred to as climate bonds

    Wigwe said that the Green Bond offer was achieved by way of Book Building, a systematic process of generating, capturing, and recording investor demand for shares during an initial public offering (IPO), or other securities during their issuance process.

    This is in order to support efficient price discovery.

    He said that the bond, priced at a coupon of 15.5 per cent, had participation from a wide range of asset managers and pension fund administrators.

    Wigwe said that the bank supported the global climate change mitigation and adaptation agenda and was seeking to promote responsible green lending globally.

    According to him, the Green Bond issuance demonstrates the bank’s commitment to sustainable operational practices, being a pioneer operator both in domestic and international capital markets.

    He added that the bank viewed the global drive for responsible and sustainable green financing as an opportunity to raise capital for the creation of assets through climate change financing.

    Wigwe maintained that the bank had a strong track record of deploying environmental and social risk management tools as well as working closely with local and international agencies to deliver a greener outcome from investing activities.

    “With our pace-setting experience in the mainstreaming of sustainability in our business operations.

    “We are confident that this issue with further help in supporting environmentally friendly investors to meet their investment objectives whilst simultaneously supporting the bank’s customer towards realising growth opportunities in fast-developing low carbon economy,” Wigwe said.

    He noted that the new funding would be directed toward financing new loans and refinancing existing loans in accordance with the bank’s Green Bond Framework, and support projects directed at flood defense, solar generation facilities, and agriculture.

  • CBN, SEC formally approve Access, Diamond merger

    CBN, SEC formally approve Access, Diamond merger

    The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) have approved the merger of Access Bank Plc and Diamond Bank Plc, the last major regulatory hurdle for the consummation of the business combination.

    Both banks at the weekend confirmed receipt of the final approval from the financial services authorities.

    The final go-ahead came on the heels of the recent approval of the merger by shareholders of both banks at a meeting specially convened by the order of the Federal High Court (FHC). The CBN and the SEC had earlier granted “approval–in-principle”, a no-objection approval, to the merger.

    With the final approval of the scheme, the banks will now submit the scheme of merger to the FHC for its judicial sanction, which seals the merger.

    Under the merger terms, Diamond Bank will transfer all its assets, liabilities and undertakings to Access Bank and the entire issued share capital of Diamond Bank shall be cancelled and Diamond Bank shall be dissolved without being wound up.

    In exchange, Diamond Bank’s shareholders shall receive a cash consideration of N1 per share and two ordinary shares of the enlarged Access Bank for every seven ordinary shares of Diamond Bank held as at the effective date.

    Access Bank will be the post-merger entity with its Group Managing Director Herbert Wigwe continuing to lead the post-merger management as chief executive. The business combination is expected to leapfrog post-merger Access Bank as Nigeria’s largest bank by total assets and one of Africa’s largest retail banks.

    At the separate court-ordered meeting in Lagos, shareholders had overwhelmingly approved the scheme of merger for the business combination and authorised the directors of the banks to take such actions as may be necessary to give effect to the scheme including listing of the scheme shares on the Nigerian Stock Exchange (NSE).

    Directors and management of the banks believed the merger will create significant values for all stakeholders, underlining the inherent synergies and value accretion in the business combination.

    The combination is expected to form a leading Tier 1 Nigerian bank and the largest bank in Africa by number of customers, spanning three continents, 12 countries, 3,100 Automated Teller Machine (ATM), more than 33,000 Point of Sales (PoS) terminals, 27 million clients and more than 10 million mobile customers.

    Diamond and Access bank share many of the same areas of focus, including women, youth, entrepreneurs and the financially excluded and will be able to further develop their positioning and market leadership in these growth sectors. Diamond Bank’s corporate customers will also be able to benefit directly from Access Bank’s corporate expertise in trade finance, cash management, treasury and corporate finance.

    Wigwe said the two banks share several common values and technologies that make the business combination a seamless one.

    According to him, the merger of the banks will create significant opportunities and benefits to customers, shareholders, staff and other stakeholders.

    He noted that the combination of Diamond Bank’s strong retail customer franchise and Access Bank’s proven risk and capital management expertise will create a post-merger bank with strong value creation potential.

  • FY18: Access Bank declares 25 Kobo dividend after N95bn profit

    The board of Access Bank Plc has released the financial statements of the company for the year ended December 31, 2018.

    The results, announced on Friday, showed improvements in both the topline and bottomline when compared with what were recorded in the previous financial year ended December 31, 2017.

    For example, the gross earnings of the bank increased by 84.8 percent to N528.8 billion from N459.1 billion achieved a year earlier.

    For the profit before tax, it improved by 32 percent to N103.2 billion from N78.2 billion, while the profit after tax appreciated by 58.1 percent to N95 billion from N60.1 billion.

    A further analysis of the numbers showed that Access Bank raked N360.3 billion from interest income on financial assets not at FVTPL/ not held for trading, while the interest income on financial assets at FVTPL/held for trading stood at N20.6 billion compared with N25.5 billion in FY 2017.

    The net interest income rose to N173.6 billion from N163.5 billion, with the net impairment charge closed at N14.7 billion in the period under review compared with N34.5 billion a year earlier.

    Fee and commission income closed at N62.1 billion versus N56.7 billion, while the fee and commission expense ended at N9.6 billion against N7.3 billion.

    For the earnings per share (EPS), it increased to N3.31k from N2.11k.

    Meanwhile, the board, in rewarding the company’s shareholders, proposed a final dividend of 25 kobo per share, bringing the total dividend to 50 kobo per share for the 2018 financial year, which should be paid on Thursday, April 25, 2019.

  • Alleged fraud: Access Bank explains officials’ role in sale of customer’s goods

    Access Bank Plc has officially reacted to reports making the rounds in the media that its Managing Director/Chief Executive Officer, Herbert Wigwe and other top officials of the bank were slammed with a N2.5 billion suit bordering on stealing and others.

    The 21-count charges were filed by the Lagos section of the Special Fraud Unit (SFU) of the Nigeria Police Force Justice N.I. Agbelu of the Ogun State High Court in Sagamu.

    Mr Wigwe, Alawode Oluseye, Bayo Adesina, and Access Bank Plc were all accused of conspiring and stealing 23,754.413 metric tonnes of steel billets valued at N2.5 billion belonging to BMCE Bank International Plc.

    The police claimed the defendants falsely presented themselves as the owners and sold the steel billets to Metal Africa Steel Products Limited without the authorisation of the actual owner.

    The alleged crime was said to have taken place in June 2017 at the premises of Metal Africa Steel Products Limited along Sagamu/Ikorodu road, Ewe Jagun, in Ogun State.

    In the suit, the police alleged that the defendants forged the Bill of Ladings number: MJINLOS150007’1A’; MJINLOS150007 ‘1B’; MJINLOS150007 ‘1C’; MJINLOS150007 ‘2A’; MJINLOS150007’2B’; MJINLOS150007 ‘2C’; MJINLOS150007 ‘2C’; MJINLOS150007 ‘2D’; MJINLOS150007 ‘2E’; MJINLOS150007 ‘2F’; MJINLOS150007 ‘2G’; MJINLOS150007 ‘2H’; MJINLOS150007 ‘2I’; MJINLOS150007 ‘2J’; MJINLOS150007 ‘2k’; MJINLOS150007’2L’ and MJINLOS150007’2M’, which they claimed were issued on January 9, 2016.

    The offences according to the police are contrary to and punishable under Sections 518(6), 434, 383(1)(f) and 390(9), 516 and 464 and 467 of the criminal Code of Ogun State of Nigeria, 2006.

    The offences also contravened Section 1(1)(a) and 1(3) of the Advance Fee Fraud and other related offences Act No. 14 of 2006.

    “That you Herbert Wigwe ‘M’, Alawode Oluseye ‘M’, Bayo Adesina ‘M’ and Access Bank Plc, on 22 day of June, 2017, at the premises at Met Africa Steel Products Limited, Km 16, Ikorodu-Sagamu Road, Ewe Jagun, Ogun State within the jurisdiction of this honourable court, conspired among yourselves to effect unlawful purpose to wit: the unlawful and unauthorised sale of 754.413 metric tonnes of steel billets, property of BMCE Bank International Plc without its permission or consent,” one of the charges read.

    However, in a swift response to the allegations, Access Bank, in a notice to the Nigerian Stock Exchange (NSE) on Monday, explained that in 2015, it provided credit facilities to Metal Africa Steel Products Limited, which it referred to as its customer, to finance the importation of billets and machinery for the expansion of its (customer) factory.

    According to the statement, “Consequent upon the grant of the facilities, the bank opened Form M and Letters of Credit (LC) to facilitate the importation of the billets for which the shipping documents were consigned to the bank. The facilities were secured by a Debenture Trust Deed over the customer’s assets shared with other lenders.

    “Upon arrival of the billets, the bank released the shipping documents to the customer to enable it clear the goods. The bank subsequently discovered that the customer had cleared the goods from the port without payment of appropriate customs duty.

    “The bank, in line with its duty to protect its depositors’ funds, reported the alleged crime to SFU which obtained a court order to take over the customer’s business operations. Furthermore, the bank petitioned Interpol, which is presently taking steps to repatriate the suspects involved in the alleged fraud from India. Subsequently, the beneficiary banks (including the bank) under the Debenture Trust Deed, appointed a Receiver/Manager who took over the operations of the customer’s business and paid the appropriate customs duty on the billets.

    “The Receiver/Manager subsequently obtained court order from the Federal High Court and sold the billets and distributed the proceeds amongst the beneficiary banks (including the bank).”

    Access Bank further said in the statement that it was “aware that the petitioner also laid claims to the same billets following which there were attempts at settlement between the petitioner and the Receiver/Manager. The petitioner subsequently filed a complaint at SFU following the failure of settlement.

    “Based on the foregoing, we were surprised to be served with the charges by the SFU alleging, amongst others, that the bank stole the billets and forged the shipping documents covering the billets.

    “We hereby state that at no time did the bank or any of its executives or officers commit any of the alleged offences. The bank has continued to maintain the position that it financed the importation of the billets and that the Receiver/Manager appointed by the bank and a syndicate of other lenders had the right to sell the goods. We are aware that there are civil matters in court on the same subject.

    “We are also aware that there are on-going settlement negotiations between the Receiver/Manager and the petitioner. Without prejudice to the settlement discussions and the civil matter, we reiterate that the Receiver/Manager appointed by the bank and a syndicate of other lenders acted within its powers to sell the billets.

    “We wish to assure our stakeholders that the bank will continue to take all necessary steps to protect its depositor’s funds in line with its fiduciary duties as well as extant rules and regulations.”

  • Access Bank board approves 2018 financial results

    The board of Access Bank Plc has approved the financial results of the company for the period ended December 31, 2018.

    The financial scorecard of the firm was approved by the board on Monday, January 28, 2019 at a meeting in Lagos.

    This was after the highest decision making organ of the lender received the results, reviewed them and said the documents can be forwarded to the Central Bank of Nigeria (CBN) for further scrutiny.

    This is the last full year results the financial institution will release as a stand-alone company following its recent merger talks with Diamond Bank.

    Its 2019 financial results will comprise an enlarged entity of Access Bank and Diamond Bank. The merger is expected to be completed this April.

    “Sequel to our earlier announcement of December 31, 2018, we wish to inform the Nigerian Stock Exchange (NSE) that the board of Access Bank met on January 28, 2019 and approved amongst other things the group’s audited financial statements for the financial year ended December 31, 2018.

    “Following the board approval, the said audited financial statements will be forwarded to the CBN for approval after which the exchange will be notified of the result,” the notice signed by Mr Sunday Ekwuochi, the Company Secretary, said.

    With this development, investors will be expecting to have a feel of Access Bank’s numbers in the coming days.