By Adedapo Adesanya
Access Holdings Plc plans to raise about $1.8 billion to expand its operations over the next four years as it targets becoming one of Africa’s largest financial institutions.
According to Bloomberg, Access Holdings will raise $1.5 billion as part of a five-year growth plan that began last year.
According to the bank’s executives during a conference call with investors in Lagos, the lender will be looking to do this through the issue of shares, bonds or other instruments.
It also plans to raise as much as N365 billion ($257 million) by selling shares to existing investors.
In a related development, Access Holdings Plc announced growth in its profits before tax in its consolidated and separate financial statements for the year ended December 31, 2023, on Thursday, posting N729 billion in 2023, representing a 335 per cent year-on-year increase from 2022.
The group also reported an 87 per cent increase in gross earnings to N2.59 trillion, up from N1.38 trillion in 2022.
In the year under review, the group’s gross earnings jumped by 87 per cent to N2.59 trillion, up from N1.38 trillion in 2022.
The group’s net interest income soared by 93.5 per cent to N695.4 billion compared to N359.6 billion in the previous year. The yield on earning assets also rose from 9.2 per cent in 2022 to 12.8 per cent.
Loans and advances expanded by 60.5 per cent to N8.9 trillion, following an improvement in the non-performing loan ratio, which decreased to 2.8 per cent from 3.2 per cent in 2022.
The group closed the year with N2.18 trillion in shareholders’ funds, marking a 77.5 per cent growth from N1.23 trillion in 2022.
Commenting on the performance, the Acting Group Chief Executive Officer, Access Holdings Plc, Mr Bolaji Agbede, said: “The Group’s strong performance in 2023 reflects our commitment to delivering value to our shareholders and stakeholders amidst challenging operating environments.
Recall that Access Holdings has been making some other moves including a further expansion in the East African market with the 100 per cent stake buyout in National Bank of Kenya Limited and is now partnering with Coronation Group, Safaricom, and M-Pesa Africa to provide a remittance corridor between East and West Africa.
