Access Corporation: Reaping Benefits of Aggressive Continental Expansion

Access Corporation has consistently outperformed the market on the growth of key metrics and its recently released financial results did not fall short of investors’ expectations, write Oluchi Chibuzor

Access Corporation Plc (Access Holdings), last week presented its first quarter 2023 earnings on the floor of the Nigerian Exchange Limited (NGX), which reflected positive trajectory.

The first quarter financial performance was released same day as the bank’s full year 2022 financial results.

However, the first quarter 2023 results established that the bank got off on the right foot and may end the year 2023 better than its 2022 performance.

Precisely, the first quarter 2023 unaudited results showed that the Holding Company’s (Holdco) gross earning maintained its upswing as it increased to N424.917 billion in the review period, higher than the N295.736 billion recorded in the first quarter of March 2022. Its profit after tax which declined marginally at the end of 2022, improved in the first quarter of 2023, to N71.636 billion, compared to N57.825 billion it realised in the first quarter of 2022.

Also, Access Corporation’s total assets increased to N15.742 trillion as at the end of March 2023, up from N14.998 trillion recorded at the end of December 2022, loans and advances grew to N5.038 trillion in the review period, from N5.108 trillion as at December 2022, and customer deposits of N9.941 trillion as of March this, higher than the N9.2 51 trillion recorded at the end of December last year.

Interestingly, the bank’s full year results also released same day did not fall short of investors’ expectations, despite the harsh operating environment.

Access Holdings’ total assets as at December 31, 2022, stood at N15 trillion, while its gross earnings crossed the N1 trillion mark to hit, N1.388 trillion, stronger than that of its peers in the league of tier-one banks.
Additionally, deposits from its customers increased to N9.25 trillion, higher than N6.955 trillion in 2021, while loans and advances to customers also went up to N5.557 trillion, from N4.446 trillion as at full year, 2021. The management also proposed a final dividend of N46.21 billion, representing N1.30 per share to its shareholders for the year ended December 31, 2022.
However, the Group’s profit before tax declined by 5.1 per cent from N176.8 billion in 2021 to N167.7 billion in 2022.
Clearly, at the end of the day, the massive continental expansion which the Herbert Wigwe-led financial institution embarked upon few years back appears to have started yielding the expected benefits. Wigwe, who is the Group Managing Director of Access Corporation, also appears not be slowing down on his mission to position the financial institution as the gateway to Africa.

From Nigeria to Rwanda, South Africa, Mozambique, Kenya, Zambia, among several others, the expansionist adrenaline rush in Wigwe saw him last month securing final  regulatory approval for Access Bank Zambia Limited, a subsidiary of its flagship subsidiary, Access Bank Plc, from the Central Bank of Zambia for the acquisition and merger of African Banking Corporation Zambia Limited (Atlas Mara Zambia) into its existing operations.

In a string of expansion across the African continent, Wigwe had said he intends to leverage the African Continental Free Trade Area agreement (AfCFTA) to expand its footprint to 20 countries across the continent.

Africa has been at the receiving end of many labels for several decades, most of which, sadly, are laced with prejudice and stereotypes — projecting our stories through a single-sided lens.

These labels — whether true or false — have served as shrouds that muddied perceptions and kept the continent draped in unfavorable narratives: ‘A continent of persistent unrest, consistent downturns, and immense human capital potential doomed to remain unharnessed without increased foreign aid’.

Altering these narratives require dogged optimism and unparalleled determination to set up structures that will catalyze development, strengthen existing systems, and provide platforms for untapped potential to be uncovered and developed.

It also requires strategic foresightedness in establishing partnerships and coalitions that will serve the African continent and capture the attention of the global community — all which Access Holdings has successfully driven through its over 20 years of impact.

Access Holdings restructured itself towards an ecosystem orchestrator involving 5 verticals – the bank (Access Bank), Lending Company (LendCo), Payment Company (PayCo), Insurance and Pensions.

Wigwe, understands that without embracing change and having foresights, Access Corporation would not be able to compete and would be left behind by their peers. This, would definitely impact customer satisfaction, operational efficiency, and revenue growth negatively.  This was why in line with its tradition, the financial institution recently unveiled a new five-year strategic plan, in which it outlined plans to deepen financial services across Africa and extend its services to the continent’s large unbanked population.

Over the years, Access Corporation, under the leadership of Wigwe, has launched and sponsored several initiatives aimed at developing the continent’s economic and social ecosystems across diverse touchpoints.

Furthermore, the institution has stood firm on its commitment to deliver on its promise of social responsibility, strong corporate governance, financial value for stakeholders, a positive and gender-balanced workplace environment, all while setting the pace with the introduction of innovative products and services.

One might be tempted to ask, “In what way is the Corporation redefining the African narrative?” Well, by investing in strategic pillars in the continent’s socio-economic landscape, and there are a few examples to show:

Sustainability

Globally, there are very few institutions that show commitment to sustainability like Access Corporation. The Corporation has played a crucial role in redefining the image of Africa by challenging negative perceptions of the continent and presenting it as a hub for sustainable development. One of the ways in which the financial powerhouse has achieved this is by focusing on renewable energy projects, which have helped to reduce the carbon footprint of the institution and its subsidiaries while promoting sustainable economic growth in Africa.

Specifically, it has been actively involved in promoting gender equality and financial inclusion, having launched several initiatives to empower women entrepreneurs and increase their access to finance, helping to reduce gender inequalities across the continent. Additionally, Access Corporation has invested heavily in digital banking technology, which has helped to increase financial inclusion by providing affordable banking services to underprivileged communities in Africa. These efforts have helped to redefine the image of Africa by showcasing the continent’s potential for sustainable development, economic growth, and aiding the cause to challenge negative stereotypes about the region. Through its various sustainability initiatives, the Corporation has impacted over 700 million lives.

The Creative Industry

Recognising the potential that exists in the African creative industry, Access Corporation has invested in various initiatives of wide-scale impact. Some of these include Art X, African International Film Festival (AFRIFF), Born in Africa Festival, amongst others.

Through the Access Bank Art X Prize, it has been able to ensure that spotlight is given to some of the best creatives on the continent and the diaspora, while providing access to mentorship in order to ensure their potential is fully realised. On the other hand, the AFRIFF partnership has culminated in thousands of budding, indigenous filmmakers being trained and movie projects funded and presented to a global audience.

Meanwhile, Africa’s creative industry boasts some of the continent’s most impressive exports that have attracted global attention, resulting in a continued spike in the industry’s contribution to the continent’s cumulative GDP. Exciting as this sounds, it has not always been the case. The lucrative boom in the creative industry has come on the heels of the positive outlook garnered through projects powered with unrelenting investments by forward-thinking organisations like Access Corporation.

Sports for Impact

In two decades, Access Corporation has altered the face of sports in Africa through landmark initiatives like the Access Bank Lagos City Marathon and Access Polo Tournament.

With roots established in Kaduna, Nigeria to ensure that children in Nigeria get access to quality education, the impact of the polo initiative is now being felt on a wider scale as the Corporation has extended its reach to South Africa. Cumulatively, over $1 million has been raised to build and equip over 100 classrooms in Nigeria and South Africa, impacting thousands of underprivileged children within Africa.

Through the Marathon, on the other hand, Access Corporation has provided a globally acclaimed platform for indigenous athletes, refugees and persons living with disability to compete in a race of global repute. Leveraging the Marathon’s prestige and reach, the Corporation has used the Gold-Label-Status marathon as an avenue to improve the economic standing of several athletes through the prize money offered while offering essential training for aspiring elite athletes.

Furthermore, the Corporation has used its involvement in sports as an opportunity to impact the health and well-being of individuals within its host community. For instance, in the last edition of the Access Bank Lagos City Marathon, active steps were taken to move the needle regarding the spread of HIV/AIDS in Nigeria, setting up an HIV testing initiative during which over 5,000 individuals got tested.

COVID-19 Response

With no prior experience on how to deal with a pandemic the scale of COVID-19, the most developed countries in the world grappled and failed at curtailing the disease’s spread. To ensure lives were saved and a positive story is told about the continent’s response to the spread of the virus, the Group CEO, Herbert Wigwe, teamed up with other private sector stakeholders to form The Private Sector Coalition Against COVID-19 (CACOVID).

Through the collective efforts of members of the Coalition, spearheaded by Access Bank and the Aliko Dangote Foundation, CACOVID raised over N43 billion to help Nigeria in combating COVID-19, through the provision of treatment, testing, training and isolation centers across the country. The Coalition also donated medical equipment and Personal Protective Equipment (PPEs) to existing centers while supporting the most vulnerable with palliatives to make the enforced lockdowns, which became necessary to contain the spread of the disease, easier to bear.

Women Empowerment

Diversity, inclusion, and equity have become buzzwords in the global community today, but to Access Holdings, they are pillars on which drive the way they operate. Whether internally or within its host communities, empowering and supporting women has been tirelessly prioritised.

For instance, the W Initiative, one of the flagships of the banking group provides mentorship and training programs designed to prepare women for leadership positions in the corporate world, and health support services that target critical health issues like breast cancer and female genital mutilation.  Presently, this initiative has impacted over 150,000 women across Africa, fostering inclusivity and breaking deeply entrenched societal stereotypes.

Also, through the W initiative, Access Bank has also made local and international fertility treatments and natal support easily accessible to hundreds of women across Africa through the Maternal Health Service Support (MHSS) Scheme. Since the launch of the Scheme, the Bank has disbursed over N211million, impacted 145 women with its low-cost health financing scheme and recorded the birth of 78 babies.

The Access Womenpreneur Pitch-A-Ton is another initiative through which the Bank has engendered inclusivity and equity, providing businesswomen in Africa with world-class business training and substantial financial injections. With the Pitch-A-Ton, the Bank has impacted over 250 women in Africa with free mini-MBA certifications and financial grants to the tune of over $21,000.

Awards

All these laudable feats have not gone without recognition from local, regional and global stakeholders as the Corporation has amassed over 300 awards since it found new ownership 20 years ago. Some notable bodies that have recognised the corporation’s efforts across finance, sustainability, women empowerment, customer service and digital innovation include, World Finance, The European Organisation for Sustainable Finance, The Banker, The Global Sustainable Finance Network, the Central Bank of Nigeria, and more. With subsidiaries spread across the major trading blocs in Africa, Access Corporation enables and empowers all Africans in its ecosystem with the privilege of a connection to the rest of the world.

Indeed, “There’s more to Africa”. As the continent continues to grapple with changing the many negative narratives that exist, Access Corporation will continue to play its part in redefining Africa’s global image and ensuring that Africans are proud of their heritage.

Therefore, its customers, partners and stakeholders across Africa should expect more from Access Corporation as it steadily moves towards its target of having presence in at least 26 countries and in at least three organisations for Economic Co-operation and Development (OECD) countries supporting trade (United Kingdom, France & United States of America).