Access Bank Plc, Nigeria’s leading financial institution, is embarking on an ambitious expansion strategy, actively seeking additional acquisitions to broaden its presence beyond its domestic market.
Just days after finalizing the acquisition of Standard Chartered Plc’s operations in Angola, Cameroon, Gambia, Sierra Leone, and Tanzania, Access Bank is poised to extend its reach to at least 17 markets across Africa.
The recently undisclosed deals not only expand Access Bank’s operations in countries where it is already established but also reinforce its commitment to facilitating trade and payment networks across the continent.
CEO Roosevelt Ogbonna, during an interview in London, described the bank’s vision to “build a railroad across the continent” by entering new markets and consolidating its presence through strategic partnerships and acquisitions.
While Access Bank has made significant inroads in various African nations, it remains largely absent in French-speaking African countries and to bridge this obvious gap, the bank plans to replicate its successful expansion strategy in these markets as soon as suitable opportunities arise.
In May, Access Bank took a significant step towards this objective by opening an office in Paris.
For Standard Chartered, these disposals represent a fulfillment of their plan to exit seven African and Middle Eastern markets, enabling them to focus on larger, high-growth economies such as Saudi Arabia and Egypt. Looking ahead, Access Bank has expressed its willingness to engage in further discussions with Standard Chartered should the bank choose to exit markets where Access Bank is already present.
Ogbonna emphasized their close partnership and stated that Access Bank would be the preferred counterpart institution for such deals.
Turning to domestic matters, Ogbonna commented on President Bola Tinubu’s recent policies aimed at liberalizing the exchange rate regime and eliminating fuel subsidies. While acknowledging the short-term challenges arising from these measures, including a 40% immediate depreciation of the local currency, the naira, Ogbonna affirmed their necessity.
He noted that business activity may temporarily slow due to increased costs, which cannot be fully passed on to the market.
Despite the devaluation, Access Bank remains confident in its ability to meet regulatory capital adequacy requirements. Ogbonna explained that the bank’s capital adequacy ratio, currently at 19.6% as of the end of 2022, comfortably exceeds the minimum threshold of 15% for lenders with international operations.
He further stated that Access Bank’s internal limits are set higher than regulatory thresholds, ensuring a solid financial position for the institution.
With $28.8 billion in assets as of March 2022, Access Bank continues to demonstrate its commitment to growth and financial resilience. As the bank forges ahead with its expansion plans and seeks new opportunities, its strong performance and strategic vision position it as a key player in Africa’s dynamic banking landscape.
