- Access Bank considers US, France, Malta for expansion
- Lagos-based lender details plans in five-year strategy filing
According to Bloomberg article published on January 18, 2023, Access Bank Plc, Nigeria’s biggest lender by assets is considering acquisitions as it looks to expand operations to 26 countries over the next five years, up from 16 currently.
The Lagos-based lender plans to enter new markets including the US, France, Hong Kong and Malta, as well as African countries such as Namibia, Angola, Ethiopia and Egypt it said in five-year strategy presentation posted on the website of the Nigerian Exchange.
“We will capitalize on our strong M&A capability and ability to build organically to create value with each expansion, prioritizing countries with better sovereign rating and complementary business landscape,” the lender said in the statement.
Access Bank has carried out a series of acquisitions in East and West Africa since 2020 as it seeks to grow and expand outside the home market Nigeria. The bank’s plan to acquire Kenyan lender Sidian Bank collapsed this month after the parties failed to complete the transaction before a deadline.
The lender expects revenue from its home market to decline to 52% by 2027, down from 82% in September because of its proposed geographical expansion while the share of profit before tax from Nigeria will probably drop to 33% from 63%, it said.
The expansion will enable it diversify its earnings “away from the volatile operating environments in Africa, orchestrate operations as a global payments gateway, manage our risk and exposures to soft currencies,” it said.
