Access Holdings Unfolds 2023-2027 African Expansion Strategy
By EDITOR
Access Holdings Plc has unveiled its new five-year strategy aimed at becoming among top five financial services institutions on African continent in terms of revenues, asset base and on a balanced scorecard basis.
The Access Holdings, the parent company of Access Bank Limited, in its five-year strategy document from 2023 to 2027, indicated that, “In two decades, Access Bank has emerged as a leading tier one financial institution in Nigeria, in line with its disciplined execution of rolling 5-year corporate plans.”
The parent company showed that it has consistently outperformed the market on the growth of key metrics, registering successes across its ambition and vision over the past five years.
It stated that, “We have focused on generating sustainable revenue across all income lines,” adding: “We have maintained and continued to carry forward a residual dividend policy which ensures we keep our investors in mind as well as provide sufficient capital to fund investment and growth, maintaining a sustainable dividend policy.”
Specifically, the Holding Company explained that there is an opportunity to extend financial services, outlining its plans to deepen financial services to the continent’s largely unbanked population.
“Our primary focus on trade is to leverage established presence across trade and financial hubs across the world to continue driving trade outputs. Presence in London, Dubai, Hong Kong, Lebanon, Beijing, Mumbai etc. and extensive footprint across the continent,” it added.
It noted that across Africa, from 2023 to November 2027, the Net Interest Margin (NIM) is expected to be at least six per cent in 2027, driven by increased lending within the core Bank and by the growth in LendCo’s business which will typically have higher margins on average.
According to the company, “Healthy Return on equity (ROE) returns expected over the next five year as we continue to maximise returns for shareholders. ROE along with ROA are expected to grow, as a result of improvements in CIR and an increase in footprint across higher efficiency locations.
“By 2027, we expect the Nigeria Bank to be contributing about 52 per cent of revenues compared to about 82 per cent (nine- month 2022). The new verticals will also be contributing about 12 per cent of total revenues, as revenues from African subsidiaries is expected to double over the next five years.
“Profit Before Tax contributions from Nigeria bank is expected to reduce from about 63 per cent (9M’22) to about 33 per cent, while the new verticals are expected to contribute about 19 per cent of the profitability by 2027, while African Subsidiaries will contribute about 20 per cent as our footprint grows across the continent.”
Accordingly, it expects to be in at least 26 countries and in at least three organization for Economic Co-operation and Development (OECD) countries supporting trade (United Kingdom, France & United States of America).
“The customer acquisition drive to hit 100 million for the Retail Business by 2027 will continue, as we migrate majority of customers to digital platforms by 2027 across all touch-points. Our primary focus on trade is to leverage established presence across trade and financial hubs across the world to continue driving trade outputs,” it stated.
It explained that, “Access Corporation’s ambitions will be supported by seven key enablers. These enablers will ensure Access executes seamlessly, becoming a top five financial services institution in the continent by the end of the strategic cycle in terms of revenues, asset base and on a balanced scorecard basis.
“Access will create a high-performance organization with a strong bench of talent who are the best African leaders with capabilities to deliver the corporation’s future aspirations.”
It further explained that, “Access Corporation has consistently outperformed the market on the growth of key metrics. We have focused on generating sustainable revenue across all income lines. We have maintained and continue to carry forward a residual dividend policy which ensures we keep our investors in mind as well as provide sufficient capital to fund investment and growth, maintaining a sustainable dividend policy.”
It pointed out that Access Bank would be in the eye of the storm, having transformed to become a leading financial and ecosystem player, with its core business as the foundation
It stated that its banking group would act as a nexus to drive transformation for the corporation, while its retail banking arm aims to evolve into a digital sales and service provider by 2027.
On the other hand, it stated that its wholesale bank unit would consolidate gains while transforming operating model, just as it business bank unit would be the preeminent SME financial services provider.
It stressed that, “The bank will evolve into a leader in international trade facilitation within Africa. Access Corporation will be supported by strong objectives across seven enablers.”