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Tag: Access Bank

  • Access Bank extends $20m loans to women-owned enterprises

    Access Bank has grown its loan portfolio of women-owned businesses to over $20 million in less than six years.

    In a statement, the lender said such feat is an indication of its commitment to partnership and entrepreneurial development of women-owned businesses.

    It said over 500 female entrepreneurs have benefited from its capacity development programmes and special sessions on how to grow their businesses successfully, adding that it has always assisted such businesses in getting securing funding.

    Also, WEConnect International, a global non-profit organisation committed to sustainable economic growth by increasing opportunities for women-owned businesses, has appointed the bank to its National Advisory Board.

    The appointment, the lender said, was in recognition of its numerous contributions to the development of women entrepreneurship in sub-Saharan Africa.

    Similar to some of the objectives of the Access Bank Inclusive Banking strategy, WEconnect International identifies, educates, registers and certifies women business enterprises that are at least 51 per cent owned, managed and controlled by one or more women.

    By this membership, the bank becomes the only financial institution partner of the international women-empowerment organisation which draws its membership from over 70 countries across globe. The lender also said it will continuously leverage its alliances, partnerships and collaborations with reputable international organisations to promote women entrepreneurship across Africa.

    The bank’s Group Head, Inclusive Banking, Mrs Ope Wemi-Jones, said the lender is encouraged by the recognition of its defining role in women entrepreneurship across sub-Saharan Africa, adding that it will continue to support, promote and boost women-owned businesses dedicatedly and innovatively.

    The bank’s Executive Director, Personal Banking Division, Victor Etuokwu said with the lender’s positioning as the national champion for women banking and over 2.6 million female customers on its books, it, therefore, has a responsibility to innovate and evolve strategies that will ensure women-owned businesses receive the necessary funding.

     

  • Access Bank eyes global most respected bank position

    Access Bank eyes global most respected bank position

    ACCESS Bank’s target is to become the world’s most respected bank. To achieve this dream, it has rolled out a five-year plan, its Managing Director Hebert Wigwe has said.

    Wigwe, who spoke at the bank’s Lagos Head Office over the weekend, said in anticipation of the growth of the bank is expected to achieve this year, it has over the years, put the requisite infrastructure that will redefine banking experience for its customers across the country.

    He added that because of the expected growth of the bank, its entire branches have been strengthened for effective service delivery, adding that it has also increased lending to the small and medium sc enterprises (SMEs) because of the bank’s management believe in the sector as a potential growth engine.

    He said its aspiration for the year is to support SMEs, the entire spectrum of the society and show empathy to workers of the bank, stressing that the launch of the gender empowerment programme by the lender is a demonstration of its desire to give more back to the society and improve the living condition of the people.

    According to Wigwe, the system discriminates against women the most in the grant of facilities to do business despite the fact that they are more prudent in managing finances. The lender has also done some tutoring for women in the area of bookkeeping aside granting of facilities to them.

    He promised sustainability, pledging the bank’s commitment to churning out leaders through its leadership institute.

    He said lending to SMEs is not a profitable thing to do in the economy now but said the bank will keep doing it for the good of the economy arguing that the lender could not cover the 12 sectors of the economy.

    With regard to assisting the growth of the education sector, he said no lender in the country supports the growth and development of small schools like it in the country, promising to keep supporting the economy through simplifying the process of accessing facilities.

  • Access Bank, IFC back sustainable banking principles

    Access Bank Plc, Interntional Finance Corporation (IFC) and other signatories of the Nigerian Sustainability Banking Principles (NSBP), have advocated a holistic implementation of the policy in order to contribute to the development of the society.

    In a statement, the bank noted the need to encourage knowledge and experience sharing among industry players and other international organizations if the objective of the NSBP would be achieved.

    According to the Chairman of the committee, Dr. Gregory Ovie Jobome, who also serves as Access Bank’s Chief Risk Officer, “the conference was convened to foster a holistic implementation of the NSBP by encouraging knowledge and experience sharing amongst industry players and other international organisations like the IFC and Sustainable Finance Ltd.”

    He explained that the bank’s objective as the Chair of the NSBP Steering Committee, and Co-host of the event was to encourage practices that would aid the actualisation of the objective of the committee in ensuring the successful implementation of the Nigeria Sustainable Banking Principles across financial institutions.

    Gregory added that the NSBP was developed by and for the banking sector in Nigeria to signal the industry’s commitment to economic growth that is environmentally responsible and socially relevant, noting that the bank has successfully embedded sustainability into the core of its operations by initiating capacity development of its employees so that all staff understands what sustainability means to the Bank.

    “We believe that Sustainable Banking is good business; If we appropriately manage E&S risks and opportunities, we will enhance our; overall risk management which in turn reduces costs and liabilities; ability to access capital and attract foreign investors and partners; aid financial and non-financial performance as well as operational efficiencies; improve the banks’ ability to attract and retain talent; and enhance growth prospects by reaching new markets and innovating new products and services,” he added.

     

  • Mandela looms large at Access Bank’s leadership conference

    Mandela looms large at Access Bank’s leadership conference

    • Outgoing MD assures on bank’s support for SMEs

    It was supposed to be a welcome address to a business-like conference, but for five minutes in the Zinnia Hall of Eko Hotel, punctuated only by brief clips of Mandela while alive, Aigboje Aig-Imoukhuede gave a resounding tribute to the late global icon. The Access Bank helmsman who eulogised Mandela’s life as one of “great leadership,” said, “Whenever, wherever, and however, Nelson Mandela touched and imparted lives positively.”

    It was with his tribute to Madiba that he welcomed participants to the Access Conference with the theme, ‘Embracing sustainable leadership,’ which held on Thursday in Lagos.

    And amongst speakers at the debut conference were four former presidents – former president of United States George W. Bush, former president of Costa Rica and now president of the Carbon War Room Jose Maria Figueres, former president of Ghana John Kuffour, and former France President Nicolas Sarkozy. And speaker after speaker all accorded Madiba his place in the annals of inspirational leadership.

    Citing qualities of leadership Bush recalled being in a classroom and having to keep his emotion in check on September 11, 2011, upon being told planes were crashing. His message; “In times of crises, remain calm.”

    Speaking on the decision-making process while as president, Bush said, “No decision is made without thorough investigation.” And according to the former leader of the biggest economy in the world, “the key to any successful Chief Executive is to surround yourself with people who know what you don’t know.”

    He urged that leaders “should trust the advice of people who work with you.” To him, “if you don’t trust the advice of people that work with you, it’s a sign of leadership weakness.”

    The former US president also advised on the removal of trade barriers across Africa and stressed that entrepreneurs are the drivers of any economy. “Most of the jobs,” he said, “are created by small businesses.”

    Advising Nigerians, Bush said good balance in the role of public and private sectors. Speaking on the US experience, he said, “Dropping individual income tax was a stimulant to private sector growth.”

    And while Bush said he regretted the way he said some things, he said, he always “spoke from his heart,” and opined that leaders should do so too. He however advocated for “clear rules” and urged citizens to “hold government to account.”

    Advocating how leaders must be aware of those they are leading, Fola Adeola, chairman of Fate Foundation said, “Leadership fails when you stop listening.”

    To leaders, the founder of GT Bank said, “Once you have people around you who don’t question you, you’re in a dangerous place.”

    Aig-Imoukhuede, who is to step down as CEO by December 31, identified challenges Nigerian entrepreneurs face, saying Access Bank focused on SMEs because “we (Nigerians) don’t entrepreneurs much of a chance.”

    He said the reason for holding the conference was to stimulate a conversation about how Nigerians can get the best from leadership in order to avoid catastrophes. “We live in a country of great inequality,” he said, “and we never ask ourselves (that) if tens of millions of people who are living in abject poverty, who are the same time see banks and companies making so much, one day these guys are going to vote with whatever they know best. ”

    The Managing Director of Bank of Industry, Evelyn Oputu during a session opined that youths are leaders but she said that Nigerian youths are “not participating much in leadership.”

    Dignitaries at the event included Lord Sebastian Coe, Olympic winner and Chairman of 2012 London Olympic Committee Organising Group, Bertrand Piccard, Initiator chairman and pilot, Solar Impulse Project, Christopher Meyer, author and CEO of Neervee LLC, and Maggate Wade, CEO of Tiosanno. Others were Jacques Attali, CEO PlaNet Finance, Ngozi Okonjo-Iweala, co-ordinating minister for the economy, Sanusi Lamido Sanusi, Central Bank governor, Oscar Onyema, and Adams Oshiomhole, Edo State governor.

    The maiden conference organised by Access Bank was attended by over 1,000 persons from different walks of life and social standing.

  • Access Bank, customer in legal tussle over loss of varsity scholarship

    Access Bank PLC and one of its customers, Mr Abosede Olusola Zealot, are currently locked in a legal battle over the latter’s alleged forfeiture of a scholarship in a Canadian university last year.

    In the case before an Oyo State High Court sitting in Ibadan, the state capital, Mr Abosede is seeking a declaration that the bank was liable for his forfeiture of a full scholarship to study at the University of Regina, Saskatchewan, Canada due to its alleged negligence in crediting his account with a deposit he made in February last year.

    He joined the cashier that received the deposit as a defendant in the suit.

    He also stated that the bank was liable for breach of contract by allegedly dishonouring a cheque he issued in favour of an insurance company towards the same admission.

    Abosede is seeking N4.5 million damages for losing the admission allegedly due to his bank’s negligence.

    In his statement of claim, Abosede explained that he maintains a joint current account with the Ojoo, Ibadan branch of the bank.

    According to him, he made a deposit of N12,000 into his account at the bank’s Bodija, Ibadan branch on February 28 last year with a clear explanation to the cashier that the sum was meant for an online payment of a non-refundable fee of $100 as application fee for the university having completed all other registration process. He added that the new deposit was to shore up a balance of N3,766 in the account to be able to pay for the said fee.

    He averred that he instructed the banker to credit his account without delay given  the fact that the deadline for the payment was March 1, 2012.

    Abosede said that the bank, however, failed to credit his account. He claimed that he went back to lodge the complaint severally before the deadline of the application process and that he was assured each time that his account would be credited but that the bank never fulfilled its obligation to him.

    Consequently, according to Abosede, he forfeited the admission and the scholarship to the university “despite the rigorous efforts and financial expenses made towards the application process.”

    Abosede averred further that he issued a cheque of N35,000 in favour of an insurance company to effect payment of a premium  in respect of a life insurance plan for his daughter but that the company returned the cheque on the excuse that his account was not funded whereas he had enough fund to defray the cost in his account.

    He said he had to withdraw cash from the same account to pay the insurance company to prove that the cheque was wrongfully returned.

    He wants the court to hold Access Bank liable for all the alleged negligence that led to his loss of the admission and full scholarship.

    The case has been adjourned till November 25.

     

  • Access Bank mulls support for education

    Access Bank has announced the introduction of an innovative solution to support the education sector in the country. Speaking at the September Power Breakfast Series in Lagos, the bank’s Executive Director, Business Banking Division, Obeahon Ohiwerei said the lender designed the innovative financial solution with consideration for the dynamics of school business.

    He said the solution is comprehensive and will cater for specific needs of the various schools within the sector – primary, secondary and tertiary institutions as well as the constituents of the value-chain, which include teachers, suppliers, parents and other critical stakeholders.

    He informed the operators, particularly private school proprietors and other promoters that the forum remains an interactive one for Small and Medium Scale Enterprises (SMEs) and entrepreneurs. According to him, “the monthly Power Breakfast Series is the Bank’s way of integrating our SMEs customers with innovative financial solutions. Today, we are engaging operators in the education sector to proffer solutions that will address most of the challenges facing the sector.”

    The director noted that Access Bank has champions who understand the education industry, and with the support of the International Finance Corporation (IFC), it will offer low-interest loans to the sector, hopefully from the first quarter of next year. He hinted that the lender is collaborating with the IFC to attract long term funds at cheap rates for the sector.

     

  • Access Bank declares N5.7b dividend as profit drops by 20%

    Access Bank declares N5.7b dividend as profit drops by 20%

    The board of Access Bank Plc at the weekend said it would be distributing N5.72 billion as interim dividends for the first half of this year in spite of substantial decline in the performance of the bank during the period.

    Key extracts of the interim report and accounts of Access Bank showed top-down declines in key performance indicators with profits before and after tax dropping by 14 per cent and 20.2 per cent respectively. Gross earnings had declined by 5.3 per cent.

    The interim dividend recommendation, similar to previous interim payouts in 2012, implies an interim dividend per share of 25 kobo. The dividends would be paid on September 17, 2013 to shareholders in the book of the bank as at close of business on September 4, 2013.

    The report showed that gross earnings dropped from N109.96 billion in first half 2012 to N104.13 billion in first half 2013. Profit before tax was lower at N26.09 billion as against N30.21 billion recorded in comparable period of 2012. Profit after tax slipped from N26.4 billion to N21.1 billion.

  • Citi Research places ‘buy rating’ on Access, UBA

    Citi Research places ‘buy rating’ on Access, UBA

    Access Bank Plc and United Bank for Africa Plc have been rated “top picks” in Citi Research’s latest report on the state of money deposit banks in Nigeria.

    Top picks in the financial parlance means that the research firm believes that the stocks of the duo will trade drastically higher over the coming months.

    The stocks are expected to significantly outperform the markets over the near-term.

    Consequently, the research firm has placed a target price of N15 per share on Access Bank whose closing price yesterday was N11.54.

    The report noted: “Access Bank, our new top pick – We resume coverage of Access Bank with a buy rating and TP of NGN15/share (from NGN14). With an ETR of 40% and strongest potential earnings growth over the forecast period, Access Bank is the top pick in our universe of Nigerian banks. At a current valuation of 1.02x its 2013E BVPS and 5.0x its 2014E EPS, we believe that the market is overly discounting its ability to build its returns to at least 21.5% by 2017E (from 19.1% at FY12) and grow its share of system profits to 11% of total by 2017 (from 8% in FY12).”

    For UBA, another top pick of the research firm, it noted: “We raise our 2013, 2014 and 2015 EPS forecasts by 31%, 18% and 20%. Following our earnings upgrades, we raise our fair value estimate for UBA to NGN11/share (from NGN8.50). UBA standouts as the only Tier 1 bank that has an asset share (11%) higher than its profit share (10%). We believe that UBA has the potential to build-out its profit share to 13% of total by 2017 by further leveraging its balance sheet. Its 1Q13 LDR was only 33%.”

    Citi Research however, downgraded Guaranty Trust Bank (GTB) Plc and Skye Bank Plc by lowering its recommendation to neutral on the two lenders.

    ”GTB, best in class, but fairly valued — We make no changes to our earnings estimates and TP for GTB. However, we lower our recommendation to Neutral (from Buy) on valuation grounds.”

    On Skye Bank, which it downgraded to neutral, the research firm said: “ Our earnings estimates are unchanged. But we lower our TP to NGN5/share (from NGN9) to reflect the likelihood of a shareholder approved capital increase of up to 50% of its current equity and M&A uncertainty. After the cut to our TP for Skye, we lower our recommendation to Neutral (from Buy),” the report showed.

    On Zenith Bank and First Bank, the reports noted:  ”Zenith Bank, best risk/ return balance —We make no changes to our earnings estimates, TP or Buy recommendation for Zenith Bank. We think Zenith has the best balance between a well-capitalised (31% CAR) and liquid (55% LDR) balance sheet.”

    On First Bank long-term play, it reduced its “2013, 2014 and 2015 EPS forecasts by 5%, 9% and 10%. Following our earnings downgrades, we lower our fair value estimate for FBN to NGN22/share (from NGN24). With 27% share of system savings deposits, First Bank is an attractive long-term play on financial inclusion in Nigeria. We continue to rate the stock Buy.”

  • Five banks’gross earnings hit N388b

    Gross earnings of Guaranty Trust Bank (GTB), Zenith Bank, Access Bank, Skye Bank and Enterprise Bank rose to N388.9 billion last year, according to data compiled by The Nation.

    GTB’s gross earnings were N221.9 billion and profit after tax was N87.3 billion, indicating 68.7 per cent leap from N51.7 billion in 2011. Further review shows that the bank recorded a slight growth in risk assets, with its loan book expanding by 11 per cent year on year – almost flat at 0.3 per cent quarter-on-quarter.

    The bank grew deposits by 11.9 per cent last year despite what is believed to be the restrictive monetary policy of the Central Bank of Nigeria (CBN).

    On a quarterly basis, growth in the GTB’s net interest income was on downward trend, slowing from 103.8 per cent in the second quarter to 50.1 per cent in third quarter and narrowed down to 36.4 per cent in the fourth quarter of 2012.

    Renaissance Capital (RenCap) said in an emailed report that it viewed GTB’s results as positive, reinforcing the best-in-class operating efficiency and profitability of the lender.

    “While noting that exceptional income from the sale of its last subsidiary, GT Homes in May 2012, may have also contributed to its earnings, however slight, we would like to highlight the bank’s rather strong operating performance,” it said.

    Zenith Bank’s net income rose to N100.68 billion in 2012 from N48.7 billion a year earlier, as its cost-to- income ratio fell to 54 per cent from 63 per cent. “Zenith’s operating efficiency showed material improvement” driving earnings higher, Muyiwa Oni and Rele Adesina, Lagos-based analysts at Stanbic IBTC Holding Co, wrote in an e-mailed note to Bloomberg.

    Zenith doesn’t expect Nigerian bank industry earnings this year to be “as aggressive” as in 2012, Chief Executive Officer Godwin Emefiele said during a March 21 interview.

    Access Bank Plc said full-year profit more than doubled as customer deposits increased. Net income advanced to N38.6 billion in 2012 from N14.5 billion a year earlier. Revenue rose 54 per cent to N208.3 billion as loans and advances to customers climbed five per cent to N604 billion. Deposits grew nine per cent to N1.2 trillion. Access Bank restrained its loan book following its purchase of Intercontinental Bank Plc in 2011, Chief Executive Officer Aigboje Aig-Imoukhuede said in October.

    Another lender, Skye Bank Plc announced N12.64 billion profit after tax for the year ended December 31, 2012. Key extracts of the lender’s audited report showed that the result represents an increase of 872.6 per cent on N1.30 billion recorded in 2011.

    Profit Before Tax (PBT) rose from N2.84 billion in 2011 to N16.51 billion in 2012. The bank maintained a steady top-line in 2012 with net interest income and net non-interest income of N44.50 billion and N22.60 billion.

    In a statement, the bank said its audited report and accounts for the year ended December 31, 2012 showed remarkable improvement in profitability as it harnessed its vast business base and increasingly efficient cost management to deliver impressive returns to shareholders.

    “On the basis of the impressive bottom-line, the board of the bank has recommended an increase in cash dividend per share from 25 kobo paid for 2011 business year to 50 kobo for 2012. This performance underlined Skye Bank as a return-driven bank. Earnings per share increased to N1.01 in 2012 as against 20 kobo in 2011,” it said.

    Enterprise Bank Limited also announced PBT of N11.3 billion for 2012. The bank was one of the bridge banks that emerged on August 5, 2011 following the takeover by the Nigeria Deposit Insurance Corporation (NDIC) of the defunct Spring Bank Plc. The new bank was recapitalised by the Asset Management Corporation of Nigeria (AMCON).

    In a statement, the bank said the profit is a marked improvement from the loss of N5.2 billion for the five-month period it operated as Enterprise Bank in 2011 (August to December 2011). The PBT represents a growth of 316.6 per cent. Other figures from the result show that gross earnings grew by 283.9 per cent to N40.4 billion as at year ended December 2012, from N10.5 billion achieved in the five-month period in 2011.

    The bank’s deposit also grew from N162.6billion to N208.4 billion between the five months in 2011 and 2012 financial year. This represents a growth of about 28.2 per cent. Total assets also experienced a growth of 31 per cent between the periods from N198.5 billion as at end of 2011 to N261.1billion by the end of 2012.

    The Chairman of Enterprise Bank Limited, Mr Emeka Onwuka, attributed the achievement by the bank to a sustained growth in quality risk asset creation, which equally engendered growth in interest income.

    He stated that in addition, the bank’s other banking income items, such as commissions, fees, electronic banking income, significant improvements in trade-related transactions, facilitated through its strategic focus on Small and Medium scale Enterprises (SMEs) helped in boosting the bank’s fees and commission income.

  • Access Bank, Mastercard partner on cashless Nigeria

    Access Bank, Mastercard partner on cashless Nigeria

    Access Bank as part of its effort to promote the cashless and financial inclusion policy of the Central Bank of Nigeria (CBN) is forging a synergy of cooperation with MasterCard in conjunction with the Nigerian National Identity Management Commission (NNIMC) to roll-out 13 million MasterCard-branded National Identity Smart Cards (NISC) with electronic payment capability as a pilot programme.

    This revelation was made at the sidelines of the ongoing World Economic Forum on Africa in Cape Town, South Africa.

    As part of the programme, in its first phase, Nigerians 16 years and older, and all residents in the country for more than two years, will get the new multipurpose identity card which has 13 applications including MasterCard’s prepaid payment technology that will provide cardholders with the safety, convenience and reliability of electronic payments.

    The project will have Access Bank Plc as the pilot Issuer Bank for the cards and Unified Payment Services Limited (Unified Payments) as the payment processor. Other issuing banks will include United Bank for Africa, Union Bank, Zenith, Skye Bank, Unity Bank, Stanbic, and First Bank.

    The Bank’s Group Managing Director, Aigboje Aig-Imoukhuede explained that, “Access Bank’s involvement in this project is testament to our ongoing efforts to expand financial inclusion in Nigeria. The new identity card will revolutionize the Nigerian economic landscape, breaking down one of the most significant barriers to financial inclusion– proof of identity, while simultaneously providing Nigerians with a world class payment solution.”

    Earlier, Michael Miebach, President, Middle East and Africa, MasterCard informed that The Director General and Chief Executive of the National Identity Management Commission, Chris Onyemenam said MasterCard was chosen as the payment technology provider for the initial rollout of the National Identity Smart Card project because of the company’s commitment to furthering financial inclusion through the reduction of cash in the Nigerian economy.”