Banking Sector

Access Holdings Posts 52.6% Profit for the First Half of the Year

Parent Company of Access Bank Celebrates Remarkable Financial Performance in H1’23

Published

2 months ago

September 26, 2023

Access Holdings Plc, the parent company of Access Bank, has reported a 58.9 percent surge in gross revenue to N940.3 billion for the first half of 2023.

The financial services giant also recorded remarkable growth in Profit Before Tax (PBT) and Profit After Tax (PAT) at 71.4 percent and 52.6 percent, respectively, culminating in N167.6 billion for PBT and N135.4 billion for PAT during the same period.

These financial milestones were unveiled as part of Access Holdings’ Audited Consolidated and Separate Financial Statements for the period concluding on June 30, 2023.

The driving force behind this unprecedented growth can be attributed to a potent combination of factors. A 63.0 percent growth in interest income and a 51.9 percent increase in non-interest income fueled the surge in gross revenue.

Access Holdings also witnessed a 35 percent year-to-date growth in customer deposits, capping the first half of 2023 at an impressive N12.5 trillion. This remarkable achievement encompassed all business segments, reinforcing the Group’s status as Nigeria’s largest financial institution by total assets.

The company’s total assets grew by 39.0 percent year-on-year to N20.9 trillion while shareholders’ funds surged by 40.6 percent to N1.7 trillion.

These astounding figures underline the Group’s ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services.

Herbert Wigwe, the Group Chief Executive Officer of Access Holdings Plc, commented on the company’s positive performance, saying, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.”

He went on to emphasize the company’s commitment to its 5-year cyclical strategy, stating, “Our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity among all stakeholders.”

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Banking Sector

FirstBank UK Enhances Fixed-Income Workflow Through Bloomberg Integration

Published

1 day ago

November 29, 2023

Investors King

FirstBank UK, the UK subsidiary of First Bank Nigeria Limited, has announced its onboarding on Bloomberg’s Trade Order Management System (TOMS) to enhance its fixed-income workflow.

The integration with TOMS is expected to provide FirstBank UK with access to a comprehensive suite of data and analytics, communications, order, and execution management solutions, streamlining its fixed-income bonds business.

As a niche market-maker for its customers in Africa, FirstBank UK plays a vital role in providing market liquidity in cash bonds, particularly in Nigerian, Angolan, Egyptian, and Ghanaian Eurobonds, to manage risk and optimize its inventory.

Olukorede Adenowo, CEO-designate at FirstBank UK, expressed enthusiasm about the integration, stating, “Bloomberg TOMS provides FirstBank UK with a complete end-to-end trading workflow covering African bonds in most of our home markets. The solution enables us to focus on expanding our footprint in the African Fixed Income landscape and deliver a first-in-kind service to our customers in Africa.”

Bloomberg’s TOMS is renowned for enhancing operational efficiency across enterprises. Lisa Bravo, Global Head of Sell-Side OMS at Bloomberg, commented, “We are pleased to help FirstBank UK enhance operational efficiency across its enterprise with our award-winning sell-side order management solution TOMS.”

FirstBank UK had previously digitized its order management workflow by offering clients access to liquidity on its Eurobond Single-Dealer Platform.

The recent integration with Bloomberg TOMS aims to centralize order handling, aggregated custom analytics, and liquidity tools within a single interface, facilitating real-time access to liquidity for customers.

Robert Hagenaars, Head of Markets at FirstBank UK, highlighted the unique feature of real-time access to liquidity in their markets, providing a distinct advantage for their customers.

This move signifies FirstBank UK’s commitment to leveraging advanced technological solutions to fortify its position in the African Fixed Income market and deliver enhanced services to its clientele.

Banking Sector

BFREE and Union Bank Explore Distressed Loan Portfolio Acquisition in Innovative Partnership

German-Nigerian Fintech BFREE and Union Bank of Nigeria to Explore Distressed Loan Portfolio Acquisition

Published

2 days ago

November 28, 2023

Investors King

In a strategic move to address economic challenges and adapt to the current financial landscape, German-Nigerian fintech firm BFREE and Union Bank of Nigeria have announced a Memorandum of Understanding (MoU) that explores the potential acquisition of distressed loan portfolios.

The MoU was formalized during the German-Nigerian Business Forum in Berlin, signifying a collaboration that could reshape Union Bank’s loan portfolio strategy.

BFREE, in conjunction with its international financing partners, is eyeing a potential investment cap of $40 million.

The focus of the collaboration is on refinancing non-performing loan portfolios, particularly those facing delays in repayment or already written off.

As Union Bank adjusts to economic pressures, the partnership leverages artificial intelligence to provide innovative solutions, offering increased flexibility for loan repayment plans.

Union Bank, acknowledging the challenging economic environment, has taken proactive steps to navigate uncertainties.

Executive Director of Union Bank, Joe Mbulu, expressed excitement about the strategic partnership, emphasizing its alignment with Union Bank’s commitment to innovation and adaptability.

This collaboration underscores the dedication to finding inventive solutions to address economic challenges faced by customers.

The potential acquisition of distressed loan portfolios reflects a forward-looking approach to financial management and resilience in a dynamic economic landscape.

Banking Sector

Nigerian Bank Shares Surge as Central Bank Signals Capital Buffer Strengthening

Investors Respond Positively to Anticipated Capital Raising Measures

Published

3 days ago

November 28, 2023

Investors King

Nigerian bank shares experienced a surge on Monday as investor sentiment rose following the central bank’s announcement that banks should increase their capital to cushion against economic uncertainty.

FBN Holdings Plc led the way with a 10% increase to N22 per share, its highest-a-day increase in five months.

Access Holdings Plc and Sterling Financial Holdings Plc also joined the upward trend, recording gains of 4.3% and 5%, respectively.

The banking index, which gauges the performance of the country’s major lenders, rose 1.7% to 754.95, reflecting the most significant increase in almost a month.

Investors are interpreting the central bank’s directive as a precursor to potential capital-raising initiatives by banks.

Joshua Odebisi, a bank equity analyst at RMB Nigeria Stockbrokers, stated, “Investors are anticipating a few things that can happen, such as capital raising, which has potential upside for those taking a position now.”

He highlighted FBN as having significant room to fulfill higher capital requirements that the central bank might set.

Central Bank Governor Olayemi Cardoso announced the need for banks to raise additional capital as a safeguard against the challenges posed by the weaker naira and sluggish economic growth.

While specific details were not provided in the announcement, the industry expects forthcoming guidelines that may involve an increase in minimum shareholders’ equity and adjustments to capital adequacy ratios.

The move aligns with a broader industry trend of reinforcing capital buffers amid naira depreciation.

FBN had previously gained shareholder approval for a rights issue to raise up to 150 billion naira in fresh equity.

The central bank’s emphasis on capital strengthening comes as the Nigerian currency has experienced a 40% depreciation against the dollar since the easing of foreign-exchange controls in June.

FBN’s capital adequacy ratio stood at 16% in the third quarter, closely approaching the 15% minimum threshold for international banks.

In comparison, Access Bank reported a ratio of 19.6%, indicating a stronger position relative to regulatory requirements.