By JAMES ANYANZWA

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Nigerian banking giant Access Bank Plc acquired four lenders in 12 months to sustain its pan-African expansion bid amid a Covid-19 ravaged operating environment and turbulence in the global financial markets.

The lender which is listed on the Nigerian Stock Exchange revealed through its annual report that it acquired banks in Zambia, South Africa, Mozambique and Botswana in the year ended December 31, 2021, in share purchase deals totalling around $135.65 million to keep its keep its pan-African expansion drive alive.

Under the deal, Access Bank increased its market share in Zambia and Mozambique through the acquisition of Cavmont Bank and BancABC, respectively and added South Africa and Botswana to the growing list of its African subsidiaries through the acquisition of GroBank South Africa and Acquisition of BancABC Botswana

The four acquisitions pushed the Group’s asset base up by 35 percent to $28.18 billion from $20.85 billion in 2020, with total revenues surging to $2.33 billion from $1.83 billion.

“To actualise our vision of becoming the world’s most respected African bank and Africa’s payment gateway, we have taken strategic strides to create indelible footprints across the African continent. We are making sure that we have a strong presence in all the major trade centres on the continent,” the bank says.

Its net profit increased by 51 percent to $384.38 million $254.65 million with loan book expanding by 23 percent to $10.68 billion from $8.67 billion while the Group’s customer deposits increased by 24 percent to $16.7 billion from $13.42 billion during the period under review.

The contribution by regional subsidiaries to the Group’s profit increased to 38 percent in 2021 from 28 percent in 2020.

In 2020, Access Bank completed the acquisition of Kenya’s transnational bank and acquired an additional 16.22 percent shareholding in its Rwandan subsidiary valued at $9.55 million to strengthen its position in the East Africa region.

The investments increased Access Bank’s shareholding in the Rwandan Subsidiary to 91.22 percent from 75 percent while laying firm grip on the Kenyan subsidiary with a 99.98 percent shareholding.

Access Bank has 36 branches in the East Africa region consisting of Rwanda (eight branches) and Kenya (28 branches), its second largest geographical operations after West Africa.

Continental aggregator

According to the annual report, the bank completed the acquisition of 90.35 percent of Grobank in South Africa with effect from May 4, 2021, in a transaction valued at $27.41 million while Access Bank Zambia acquired 100 percent issued shares of Cavmont Bank in Zambia with effect from January 4, 2021, at a bargain purchase of$3.49 million.

Access Bank Mozambique acquired 99.99 percent of the issued shares of BancABC Bank in Mozambique with effect from May 14, 2021, at a consideration of $22.24 million while in Botswana Access Bank Plc acquired BancABC Bank in Botswana with effect from October 7, 2021, in a deal estimated at $82.5 million.

Over the last couple of years, Access Bank has been on an expansion journey, strategically establishing a presence across Africa with a view to taking advantage of the widening opportunities in the continent.

According to the report, its achievements recorded in the African financial landscape have been buoyed by the increased financial integration, increased mergers and acquisitions within and across borders, as well as lower trade barriers between markets.

The lender is also looking to leverage on the benefits of the African Continental Free Trade Area Agreement (AfCFTA) to expand to high-potential markets across the continent.

It is believed that AfCFTA, among other benefits, would expand intra-Africa trade and provide real opportunities for Africa.

Access Bank has focused its expansion efforts on powering digital payments across Africa with the launch of ‘AccessAfrica’ product — a payment system that serves to facilitate cross-border trade and non-trade payments.

“The bank’s focus is to become an aggregator in Africa, building a global payment gateway and providing trade finance support and correspondent banking services across the continent,” the report says.

The lender has so far operations in about 12 African countries including Nigeria, Rwanda, Sierra Leone, South Africa, Zambia, The Gambia, Botswana, Congo, Ghana, Guinea, Kenya and Mozambique.

It also has operations in United Arab Emirates and United Kingdom and representative offices in India, China and Lebanon.

In March 2019 Access Bank merged with a rival mid-tier lender Diamond Bank Plc mainly to expand its retail footprint, complement the Bank’s existing corporate franchise and create a diversified bank that can support all its customers’ needs.