TheNewsGuru

Tag: Access Bank

  • Access Bank gets commendation for saving Etisalat

    Shareholders of Access Bank Plc have commended the bank and other members of the consortium of banks that provided the $1.2bn loan that saved Etisalat (now 9mobile) from collapsing.

    The shareholders stated this at the bank’s 29th Annual General Meeting (AGM) in Lagos on Wednesday.

    Mr Bayo Adeleke, immediate past Secretary, the Independent Shareholders Association of Nigeria (ISAN), lauded the bank’s effort in ensuring that the telecoms company did not collapse.

    Adeleke said the bank’s decision to accommodate a business that was going comatose helped many Nigerians to retain their jobs in the telecommunication company.

    He said that many Nigerians would have lost their jobs if the company was allowed to collapse, thereby increasing the country’s unemployment rate.

    Adeleke, however, urged the management of the bank to ensure recovery of the debt in order to increase its bottom-line and dividend payout in the years ahead.

    He said the bank’s profit would have increased significantly if not for the telecommunication company’s loan provision.

    Access Bank’s result for the financial year ended Dec. 31, 2017 showed that total impaired loans and advances stood at N101.36 billion from N36.61 billion recorded in 2016.

    Adeleke frowned at the N357.17 billion restricted deposits with the Central Bank of Nigeria (CBN) without interest during the period under review.

    He said the apex bank should pay interest on the fund in line with laws of Economics.

    Adeleke also called for the winding down of the Asset Management Corporation of Nigeria (AMCON), noting that the corporation had overstayed its welcome.

    He said Access Bank paid AMCON the sum of N27 billion in the last two years, and the reason for its establishment was no longer necessary.

    Adeleke lamented the incessant attacks on banks by armed robbers, urging government at all levels to provide the needed security for lives and property.

    Mr Taiwo Oderinde, another shareholder, called for enhanced training of the bank’s chief finance officer, risk officers, among others for improved performance.

    Oderinde said the officers should be exposed to local and foreign training due to rising cases of fraud in the industry.

    Responding, Mr Herbert Wigwe, Managing Director of the bank, said 2017 was not easy for the banking industry.

    Wigwe said the exchange rate volatility and other economic headwinds resulted in significant loan loss provision during the period, which affected the bank’s profitability.

    He explained that the drop in its profit was due to the telecommunication firm’s loan provision.

    Wigwe told shareholders to expect improvement in the years ahead, noting that the bank was still on the loan issue.

    On the issue of security, Wigwe said the country needed to solve its social issues to achieve growth and development.

    The bank posted gross earnings of N459.08 billion during the period as against N381.32 billion achieved in the comparative period in 2016, an increase of 20 per cent.

    Its profit before tax dropped from N90.34 billion in 2016 to N80.07 billion during the review period, a decline of 11.36 per cent. The profit for the year similarly dropped from N71.44 billion in 2016 to N61.99 billion in 2017.

    The shareholders approved a final dividend of 40k per ordinary share held by investors.

    The bank had earlier paid an interim dividend of 25k, the same amount paid the previous year.

     

  • NSE to migrate Access Bank, UBA, Lafarge Africa, Seplat to Premium Board

    NSE to migrate Access Bank, UBA, Lafarge Africa, Seplat to Premium Board

    The Nigerian Stock Exchange (NSE) on Thursday announced plans to migrate Access Bank, Lafarge Africa, Seplat and United Bank for Africa (UBA) Plc to its Premium Board.

    The NSE said in Lagos the four companies would be migrated to its Premium Board on April 16, sequel to their applications and meeting of its listing requirements for the board.

    The Premium Board is the listing segment for the elite group of issuers that meet the exchange’s most stringent corporate governance and listing standards.

    The board is a platform for showcasing companies that are leaders in their sectors.

    Premium Board features companies that adhere to international best practices on corporate governance and meet the Exchange’s highest standards of capitalisation and liquidity.

    It gives a company access to a global pool of investors who are focused on companies managed in conformity to the highest standards in their target markets.

    The NSE said Access Bank Plc, Lafarge Africa, Seplat and UBA had all passed the Corporate Governance Rating System (CGRS).

    It added that they had market capitalisation of N347.12 billion, N378.60 billion, N391.37 billion and N374.48 billion respectively.

    “They will join Dangote Cement, FBN Holdings Plc., and Zenith International Bank that were migrated to the Premium Board in 2015, bringing the total number of companies on the Board to seven,’’ NSE said in a statement.

    The statement quoted Mr Oscar Onyema, NSE Chief Executive Officer, as saying that the migration affirmed the strides listed companies were making toward meeting the highest standards of corporate governance.

    Onyema said the new companies had consistently demonstrated their inherent values to be globally competitive brands.

    “Companies on the board are already enjoying the highest levels of visibility and appeal to investors looking for large companies with highest standards of corporate governance.

    “From inception to date, the Premium Board Index continues to outperform the benchmark NSE ASI with the Premium Board recording a total return of 84.99 per cent versus the NSE ASI’s 41.79 per cent as at April 11.

    “The Premium Board’s performance continues to reinforce the sentiments of both foreign and domestic investors on the importance of corporate governance and sustainability,’’ he said.

    However, to be listed on the Premium Board of the NSE, the aspiring companies must attain a minimum market capitalisation of N200 billion as at the date of application, a minimum score of 70 per cent on the CGRS.

    The companies must maintain a minimum free float of 20 per cent of their issued share capital or a free float value equal to or above N40 billion, as well as meet other standard listing criteria.

    The NSE Premium Board and the associated Premium Board Index were launched on Aug. 25, 2015.

     

  • Fitch upgrades Access Bank’s rating to ‘A+’

    One of the global rating agency, Fitch Ratings, has upgraded Access Bank’s National Long-Term Rating to ‘A+ from ‘A.

    The firm also affirmed the Bank’s Long-Term Issuer Default Rating (IDR) at ‘B’. The rating agency stated in its latest report: “Access Bank’s IDRs are driven by the Bank’s intrinsic creditworthiness as defined by its Viability Rating (VR)”.

    According to the rating agency, Access Bank’s asset quality metrics compare especially well with its immediate peers, as, “the Bank’s stock of non-performing loans has remained under control, comprising 2.6% of gross loans at end September 2017, the lowest of all large Nigerian banks.”

    Fitch also regards Access Bank’s resilient asset quality as a reflection of the lender’s good corporate banking franchise and good management stability, which includes a robust risk management framework. Furthermore, the rating agency noted that refinancing of the Bank’s Eurobond in 2016 eased the bank’s foreign currency liquidity position.

    “Access Bank’s National Ratings are a reflection of its relative creditworthiness to the best credits in Nigeria,” it stated. Speaking on the ratings upgrade, the Group Managing Director/CEO, Herbert Wigwe, said: “The rating is a reflection of our strategic intent to adopt best global practices in all aspects of our business.

    We have grown over the years to become a formidable force within the financial markets in which we play, with an aim to becoming the most respected African Bank.” “As we embark on our next five – year cyclical growth strategy, we remain focused on establishing robust risk management and compliance frameworks, and seeking innovative ways to continually eschew sustainable banking ethos,” he stated.

  • Access Bank customers set for ‘Omnichannel experience’

    Nigeria’s foremost bank, Access Bank Plc has said it is set to provide an Omnichannel experience for its teeming customers.

    Access Bank made this known in a press release made available to TheNewsGuru in which the bank stated it has upgraded its mobile and Internet banking platforms, and introduced alongside, a range of new and exciting features.

    The bank explained that the Omnichannel experience simply means customers of the 2017 Karlsruhe Outstanding Business Sustainability Award winner would enjoy a seamless and consistent interaction with the Bank across multiple channels.

    With this new upgrade, customers can now sign-in to the mobile and Internet banking platform with the same user details. Also beneficiaries and other information stored on one channel are available for use on the other channels.

    TheNewsGuru reports additional features have been added with the aim of making banking convenient as ever for the Bank’s customers.

    Some of these features include: standing orders for recurrent transactions like bill payments, top up, fund transfer and lots more.

    It also enables customers to purchase airtime directly for a friend from the phone contact list, manage cheque, receive targeted product campaigns, as well as analysis and tracking of monthly spend and use of MVisa.

    Speaking on the development, Maryann Ezechukwu, Group head, Channel Services said the upgrade revalidates Access Bank’s focus in creating disruptive innovation that creates value.

    “As a Bank, we appreciate our customers and we recognize the importance of convenience and ease of use to them hence our continuous engagement with customers and creation of value which results in regular updates of the mobile and internet banking platforms premised on our customers speaking and us listening”, she said.

    During the year, the Bank deployed a set of new features such as movie tickets, quick top up, quick transfer, cardless withdrawal, among others.

    Ojini Olaghere, Executive Director, Operations and IT, said, “The upgrade only goes to confirm our consistency over the years in delivering superior value to our stakeholders in line with our vision to be the world’s most respected African bank.

    “The upgrade reflects our commitment to the core values of innovation, professionalism and devotion to excellence in our operations and service delivery.”

    Meanwhile, last week, the GMD/ CEO, Herbert Wigwe, announced the Bank’s new 5-year strategy to become the number one bank in Nigeria and create a Universal Payment Gateway to dominate international trade and inter-African payments.

    In line with this, internet and mobile banking upgrade is definitely the first step of many, the bank stated.

     

  • Access Bank launches new five-year strategy – to become Africa’s Gateway to the World

    Access Bank, the full-service commercial bank with headquarters in Nigeria and operations across Sub-Saharan Africa, the UK, Asia and the Middle East, today announces its new five-year strategy with an ambitious plan to become Africa’s Gateway to the World.

    Download 2018 – 2022 Access Bank Strategy Presentation Here

    This is the latest in a series of transformative strategies that have resulted in sustained growth. From 2013 to November 2017, Access Bank has increased its total assets at a CAGR of 18% and delivered shareholder returns of 90%. The bank has also grown its customer base from 90,000 in 2002 to over 8 million in 2017 and in the same period opened 351 new branches.

    The new 5-year strategy will accelerate this growth story to position Access Bank as the No. 1 Nigerian bank by 2022 and create a Universal Payments Gateway to dominate international trade and inter-African payments.

    The new strategy has six strategic levers:

    • Digitally led
    • Retail banking growth and consolidation in wholesale markets
    • Customer focused
    • Analytics driven, with robust risk management
    • Strong global collaboration in key gateway markets
    • The creation of a universal payments gateway

    To deliver the transformation, Access Bank will adopt a new organisational structure. The retail bank will have a customer segment focus, driven by digital and payments. The corporate bank will build deep sector expertise and deploy global relationship managers. Access Bank’s subsidiaries will be organised around strategic clusters, with strong collaboration between them to secure trade finance and correspondent banking. The bank’s transformation programme will be underpinned by robust risk management together with high levels of automation to enhance the compliance and risk functions and drive customer insights.

    In next phase of its transformation programme, Access Bank will embark on a series of bold initiatives. At home, the goal is to be the No. 1 bank in Nigeria by growing the retail customer base, SME client base, and by dominating the top 100 Nigerian corporates. Internationally it will develop an integrated global franchise by strategically developing its presence in key African markets, enhancing collaboration in global financial gateways including London and New York, Asia and the Middle East, and strengthening its trade hubs in India, Dubai and China.

    Download 2018 – 2022 Access Bank Strategy Presentation Here

    A strengthened presence in key African markets, and the creation of Universal Payments Gateway combined with an integrated global franchise, ideally positions Access Bank to be Africa’s Gateway to the World.

    Launching the new five-year strategy, Herbert Wigwe, CEO and Group Managing Director, said:

    “Five years ago we set the ambitious goal to attain top three positions in our chosen markets. Today, we are a strong, diversified institution with a consolidated top-tier position in our sector.

    We are setting out a new and ambitious five-year strategy which will put Access Bank at the forefront of Africa’s changing financial landscape by creating a Universal Payments Gateway to dominate international trade and inter-African payments.

    Our strategy will mean that by 2022, millions of people will have access to banking services for the first time. Customers will make payments and transfers when and how they need to. Businesses will be able to trade in new markets and invest in new technology.

    We recognise that we have a vital role to play in growing Nigeria, our largest market. Our global footprint is also changing and growing. As a result of our strategy, we will be in the Africa corridor trade hubs and the global gateway markets within five years.

    This next phase of our transformation journey will deliver our most ambitious goal yet – a bank that is digital, innovative and nimble. A bank underpinned by the highest standards of risk and compliance. A bank that serves Africa and the world. Our ambition is to become Africa’s Gateway to the World.”

    There will be a presentation to shareholders at the Nigerian Stock Exchange today, 4th December at 10:30hrs (09:30hrs London; 11:30hrs South Africa). A live audio webcast and presentation slides will be posted on the day of the event to www.accessbankplc.com under Investor Relations, Events & Presentations. Dial-in information is provided below:

     

    Nigeria +234 1 903 0040

    South Africa +27 11 535 3600

    UK +44 808 162 4061

    USA +1 855 481 5362

    Participants should dial in at least five minutes before the start of the presentation.

     

    Investors

    Cathy Okwara

    E: Cathy.Okwara@accessbankplc.com

    T: +234 1 2364365

    M: +234 807 3727399

    Ext: 4365

     

    Investor Relations

    E: Investor.relations@accessbankplc.com

    T: +234 1 2362836

     

    Media

    E: Abdul.Imoyo@accessbankplc.com

    T: +234 1 236 2758

    M: +234 803 2011590

     

    Download 2018 – 2022 Access Bank Strategy Presentation Here

  • Access Bank redeems $350 million Eurobond

    Access Bank Plc has announced the final redemption of the $350,000,000.00 Eurobond Notes due July 25, 2017.

    The Securities were issued in 2012 by Access Finance B.V. – a direct, wholly owned subsidiary of the Bank – on the back of an unconditional and irrevocable guarantee of the Bank. In October 2016, holders of $113 Million of this note elected to exchange same for a new 5 year bond issued by the bank at the time.

    Upon maturity of the Eurobond in July 2017, the outstanding portion of $237,003,000 as well as the final coupon value of $8,698,010.00 was redeemed from the bank’s available cash reserves.

    Access Bank has continued to maintain a robust balance sheet, supported by its strong liquidity position. The implementation of a disciplined capital and liquidity plan ensured that the Bank was proactive and focused in raising capital in the International market. Key successful Eurobond transactions from the market include: US$350 million (2012), US$400 million Subordinated Notes and the US$300 million Senior Notes comprising US$113 Million exchange and US$187 million new notes (2016).

    The latter was issued at an extremely difficult macro–economic condition in 2016. Nonetheless, the success of the transaction, the first during the period, repositioned the Nigerian market in a positive light, following a year of volatile market conditions, and paved the way for other corporates to gain access to the market.

    According to the Group Managing Director/CEO, Herbert Wigwe, “Access Bank’s ability to redeem the $350,000,000.00 Eurobond Notes highlights the resilience of our balance sheet and the efficiency of our asset and liability management process, especially in the face of a macro underlined by FX illiquidity, double digit inflation and currency devaluation. By building a robust risk management culture and sustainable capital & liquidity management strategy, the Bank has positioned itself to compete and win in the challenging, but recovering macro condition.”

    Access Bank has continued to leverage its corporate strategy and an experienced Board and Management, to consistently deliver solid performance. The recent re-affirmation of its credit ratings by several credit rating agencies as well as an upgrade to Aa- from A+ by Agusto, reinforces the bank’s strong fundamentals

  • Access Bank wins Karlsruhe Sustainability Award for 2nd consecutive year

    Access Bank Plc has just scored a rare repeat performance at the 2017 Karlsruhe Sustainable Finance Awards in Germany by receiving the “Outstanding Business Sustainability Achievement Award 2017”.

    The award was presented to Access Bank CEO, Herbert Wigwe in Karlsruhe, Germany’s most sustainable city a year after Access Bank made history as the first African bank to receive this prestigious accolade. The award was received barely a week after Nigeria’s foremost rating agency, Agusto & Co upgraded the Bank’s rating from A+ to AA-

    The award conveners presented the accolade in recognition of Access Bank’s outstanding success in incorporating economic, social and environmental aspects into its corporate strategy and business processes. This prize also brings global recognition to the Bank’s impressive success in holistically embedding sustainability across all aspects of operations within the financial institution.

    The award ceremony which held on July 13th, 2017, was attended by CEOs of leading international financial institutions, senior executives of other winning institutions and top German government officials.

    Speaking at the presentation ceremony Herbert Wigwe, Group Managing Director/CEO of the Bank said the award validates the Bank’s continuous efforts and commitment to the Sustainable Development Goals.

    “Since we were here last year to receive the 2016 “Outstanding Business Sustainability Achievement Award,” Access Bank has continued to champion responsible investing, innovative health initiatives, environmental protection and financial inclusion. We are doing this profitably. So, we continue to encourage other institutions to embrace the same principles and practices,” Wigwe said.

    “At Access Bank, we believe our operations, loan and project finance must have the barest environmental footprint. Indeed, we believe the net impact of our activities must be positive on the environment. As such, we are champions of climate change mitigation and adaptation” he added. He assured that the Bank will be further motivated and maintain profitable growth while embracing sustainability.

    The conveners said the 2017 awards focused on honouring organizations that have made outstanding contributions in the field of sustainable finance, stimulated the interests of financial institutions and other stakeholders in integrating sustainability in their core business strategy.

    It also recognises candidates who promote growth of sustainable financial instruments and markets worldwide particularly in the fields of green finance and investments, financial inclusion and social finance, green equity and holistic integration of sustainability in the financial services institutions.

  • Etisalat debt predicament: 13 Banks’ shareholders mount huge pressure

    …ask telecoms firm to clear debt

    Shareholders of the 13 banks involved in the N1.2 billion loan for Etisalat Nigeria have asked the telecoms company to pay up its debt in order to guarantee the payment of annual dividends.

    The shareholder group told the News Agency of Nigeria in Lagos on Tuesday that the company risks legal action by the banks if it failed to settle its outstanding loan obligation.

    The National Coordinator, Progressive Shareholders Association of Nigeria, Boniface Okezie, said the affected banks should approach the court for receivership if Etisalat failed to settle the debt.

    Mr. Okezie said in view of the obligations the banks have to their shareholders, in terms of dividend payment at the end of the financial year, it was incumbent on Etisalat to pay the debt.

    On his part, the Chairman of Nigeria Professional Shareholders Association, Godwin Anono, said the company was under obligation to settle the debt, since the transaction was in line with the customer-bank relationship, involving terms and conditions that must be obeyed.‎

    Mr. Anono said the shareholders were in support of the banks’ move to acquire the company if it failed to settle the loan.

    “This is like any other transaction. It’s not government business. I stand on existing protocol to say that the banks should acquire the company if it fails to settle the debt,” he said.

    The Head Research, SCM Capital Ltd, Sewa Wusu, said where there was any breach of the terms and conditions of the loan between Etisalat and the consortium of banks, then the normal legal process should be followed.‎

    Mr. Wusu said the issue was beginning to elicit concerns in the banking industry considering the amount involved and its potential impact on the balance sheets of the banks banks.

    “Since the monetary authority is also involved in the negotiation, I am sure this will ensure prompt settlement of the situation among the parties,” he said.

    Etisalat had obtained a $1.2 billion (N377.4 billion) syndicated loan in 2013, from a consortium of 13 Nigerian banks, to finance a major network rehabilitation, upgrade and expansion of its operational base in Nigeria.

    The consortium of banks include Access Bank, Zenith Bank Plc, Guaranty Trust Bank Plc, First Bank Limited, Fidelity Bank Plc, First City Monument Bank (FCMB), Stanbic IBTC, Ecobank, United Bank for Africa (UBA) Plc and Union Bank of Nigeria Plc.

    Zenith Bank, Guaranty Trust Bank and Access Bank have the top three exposures of the total loan – N80 billion, N42 billion and N40 billion respectively.

    Etisalat Nigeria said last week it had paid about half of the initial loan (about N504billion), leaving a total outstanding sum of about $574 million.

    >>Also read: United Arab Emirates-based Etisalat Group says willingness to release its brand name is conditional

     

  • Etisalat saga: NCC reveals legal implication, assures of network integrity

    The Nigerian Communications Commission (NCC) has revealed the legal implications of the takeover of Etisalat Nigeria by a consortium of banks while assuring subscribers of telecoms service provider of continuous quality service.

    This is coming on the heels of the change in the ownership structure of Etisalat Nigeria.

    The company had on Tuesday announced the divestment of part of its shares following its inability to meet up with the payment of a loan it took from the consortium of local and international banks, which amounted to N541 billion.

    In this wise, after the loan restructuring talks failed, the company had to cede a substantial part of its shares to the consortium of banks, led by Access Bank Plc.

    Following this development, there had been fears about a possible nosedive in the quality of service rendered by Etisalat Nigeria, which is regarded as one of the best service providers in the country.

    The NCC, in a statement by its Director of Public Affairs, Tony Ojobo, however, said it would continue to monitor Etisalat for the delivery of quality service.

    He drew the attention of the lender banks to Section 38 and Sub-section 1 of the Nigerian Communications Act (NCA) 2003 which spells out that, “The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;”

    Ojobo, said that the lenders banks must take note of relevant provision of the NCA 2003 as well as relevant provisions of the laws guiding the transfer of licences issued operators by the telecoms regulator.

    According to the NCC, Sub Section 2 of the same provision equally states that, “A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation”.

    Ojobo, who said that NCC is aware of the indebtedness of Etisalat Nigeria to the consortium of banks says that the telecoms regulator and its banking counterpart, the Central Bank of Nigeria (CBN), “mediated by holding several meetings with the banks, Etisalat and other stakeholders with a view to finding a resolution”.

    Despite the efforts of the two industry regulators of Federal Government, “regrettably these meetings did not yield the desired results”.

    “The NCC wishes to reassure the over 21 million Etisalat subscribers that it will do all within its regulatory power to ensure that Etisalat subscribers continue to enjoy the services provided by the operator,” the telecoms regulator stated.

     

  • Consortium of banks takes over Etisalat Nigeria

    After talks of Etisalat Nigeria debt restructuring plan reached stalemate, a consortium of banks will effective June 23 take over the business of Etisalat Nigeria.

    The parent company of Etisalat Nigeria, Etisalat Group, announced the takeover on Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

    The filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017 signed by Etisalat Group Chief Financial Officber, Serkan Okandan, said efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

    “Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, “Etisalat Group” would like to inform you that Emerging Markets Telecommunications Services Limited “EMTS” (“the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (“EMTS Lenders”).

    “Subsequently, discussions between EMTS and the EMTS Lenders did not produce an agreement on a debt restructuring plan.

    “Accordingly, the Company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100% of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.

    “Subsequently the EMTS Lenders extended the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

    Etisalat has been under pressure since 2016, following the demand notice for the recovery of a $1.72 billion (about N541.8 billion) loan facility it obtained from the consortium of banks, led by Access Bank PLC and other Nigerian and foreign banks, in 2015.

    The loan, which involved a foreign-backed guaranty bond, was for the mobile telephone operator to finance a major network rehabilitation and expansion of its operational base in Nigeria.

    Unable to meet its debt servicing obligations agreed since 2016, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

    But the intervention of the telecom sector regulator, Nigerian Communications Commission, NCC, and its financial sector counterpart, the Central Bank of Nigeria, CBN, persuaded the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

    However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

     

     

     

    Source: Premium Times