Etim EtimShareholders of Access Holdings will meet in Lagos on 15 May to consider the group’s financial results for FY 2024 and review its expansion strategy for the next few years.
Analysts and industry watchers have variously described the 2024 financials as a strong and resilient performance, commending the business for its impressive outing.
Join our WhatsApp ChannelThe group closed the year with N4.9 trillion gross earnings and a N867 billion PBT, making it one of Nigeria’s most diversified and profitable of the top five banking groups.
“Access Holdings has posted very good results given where the company is coming from and the rapid expansion it has made into Africa and other parts of the world in the last few years. The results of this expansion will be seen in the years ahead; but I commend the group for its resilience in view of the transition in the executive suite last year,’’ says Patrick Osadebe, a senior industry analyst.
Investors and analysts are also interested in Access Holdings’ expansion strategy in the 2025-2026 and 2026-2027 phases which Group CEO Bolaji Agbede unveiled in a global investors’ call last Wednesday. It is her 3rd analyst call but second full year performance review since she assumed leadership of Access Holdings in February last year.
There was the 2023 full year review last April and now the 2024 full year review this April. The group also had the half year 2024 review in September last year.
Under Agbede’s leadership, and supported by a crop of subsidiary leaders, Access Holdings has recorded impressive financial performance, beating expectations in many parameters. Following the group’s growth into various markets with several successful mergers and acquisitions (M&As), the focus in the 2025-2026 phase is to shift to consolidation to create value to shareholders.
The goal is to maximise wealth and increase earnings potentials to create a larger and more competitive entity. During the 2026-2027 phase, Access Holdings’ priority will be to streamline operations, integrate systems and drive operational efficiency, while fine-tuning its business models to unlock the full value of consolidation. This period is characterized by enhanced ecosystem synergies, reduction in costs, enhanced revenue generation and an improved dividend payout ratio.
READ ALSO: Access Holdings Sees Record Growth As Q3 Revenue Surges 114.5% To N3.4trn
Agbede said: “Our Africa strategy is supported by our presence in key international markets. Access Bank hosted the Africa Trade Conference in Capte Town in March, uniting key stakeholders to drive trade and growth. We are launching the first Africa-wide trade programme, starting with oil and gas, which makes up 16% of Africa’s imports. We aim to capture 50% of oil import financing and control 25% of trade volumes by 2027’’.
Each subsidiary of Access Holdings has posted quite an inspiring showing in FY 2024. Banking recorded N4.8 trillion in turnover, an 88% growth and the largest in FY 2024 and interest income of N3.4 trillion; pensions posted N3.3 trillion asset under management (AUM), the second biggest PFA in the country. AUM is the total market value of assets managed by an investment scheme. The insurance business recorded a N7.3 billion gross premium, up by 231% and N946 million revenue, up by 297%. Transaction value processed across all tech platforms was worth N49.1 trillion.
In the next two years, the banking group hopes to deliver on its expansion objectives through various strategies. Access is already known as breeding ground for Africa’s top banking minds, but it is shifting its talent base towards product managers, data scientists and digital engineers. In risk and compliance, the group plans to maintain proactive relationships with central banks and regulators in each region. Its focus is to build a reputation as the “compliance gold standard’’ for African banks operating globally.
The group also plans to pursue capital and liquidity efficiency by deploying capital in markets where Access has a clear path to market leadership. Access UK is to secure Eurozone banking relationships, facilitate correspondent banking and manage African outboard flows into Europe. It shall also activate Hong Kong as the Asian bridge, enabling Renminbi (RMB) or Chinese Yuan settlement.
READ ALSO: My Takeaways From Access Holdings AGM
With a footprint in over 20 countries and three continents, and a customer base north of 60 million, Access has become a truly pan-African platform with global relevance. The AGM of May 15 will offer shareholders another opportunity to express confidence in Agbede and her colleagues.
Etim Etim
ETIM ETIM is a journalist, banker and author. He has been a member of the Editorial Board of The Guardian, a Regional Manager in Access Bank and is currently a Columnist in Prime Business Africa, The Cable and Businessday newspapers.
He is also the Chief Executive of Stein Meyer Communications, a major media consultancy and the author of the best-selling book, "Akwa Ibom Heroes: Inside Story of the Fight for Abrogation of Onshore-Offshore Oil Dichotomy" and co-author of another book, "Osinbajo Strides: Defining Moments of an Innovative Leader".
