Access Holdings Plc has declared in its 2023 strategic plan its determination to become top five financial services institution on African continent by the end of the strategic cycle, specifically by 2027.
The bank intends to lead by growing in terms of revenues, asset base and on a balanced scorecard basis.
The company announced this in its 5-year strategy document, which was released on the Nigerian Exchange Limited yesterday, January 17, 2023.
“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.”
Access Holdings Plc
The bank stated that it has consistently outperformed in the market on the growth of key metrics adding that “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.”
Access Holdings
Access Corporation has an opportunity to reach out to the unbanked with their financial services as well as deepen the services offered to the banked category, it also noted.
In its report, Access Holdings stated that it expects the Net Interest Margin (NIM) to be at least six percent by 2027 and expect this growth to be driven by an increase in lending within the core bank as well as by the expansion of LendCo’s business – which typically has higher margins on average, from 2023 to November 2027.
“Healthy Return On Equity (ROE) is expected over the next five years as we continue to maximize returns for shareholders. ROE along with Return on Assets (ROA) are expected to grow, as a result of improvements in Credit Information Report (CIR) and an increase in footprint across higher efficiency locations.”
Access Holdings
Moreover, by 2027, Access Bank Plc expects its subsidiary bank in Nigeria to be contributing c.52 per cent of revenues compared to c.82 per cent recorded for the first nine months of 2022. The bank also expects that the new verticals will also be contributing c.12 per cent of total revenues, as revenues from African Subsidiaries is expected to double over the next five years.
“Profit Before Tax (PBT) contributions from Nigeria Bank is expected to reduce from c.63 per cent (nine months, 2022) to c.33 per cent, while the new verticals are expected to contribute c.19 per cent of the profitability by 2027, while African Subsidiaries will contribute c.20 per cent as our footprint grows across the Continent.”
Access Holdings Plc
Access Holdings Anticipates Further Expansion
The company anticipates that by the end of 2027, it will have a presence in at least 26 countries, including three Organization for Economic Co-operation and Development (OECD) countries that support trade: United Kingdom, France, and 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 touchpoints. Our primary focus on trade is to leverage established presence across trade and financial hubs across the world to continue driving trade outputs.”
Access Holdings
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