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By Chinwendu Obienyi
In over 26 years, Access Holdings Plc, (formerly Access Bank Plc) has evolved from a fringe Nigerian lender into a world-class African financial powerhouse.
The journey to this enviable height did not come easy but has been one characterised by several years of strategic planning and commitment by some of the brightest minds in the Nigerian financial space.
From setting targets that most analysts considered unrealistic a few years ago, AccessCorp is undoubtably today one of Nigeria’s five largest banks in terms of assets, loans, deposits and branch network, a feat that was achieved through robust long-term approach to client solutions backed by committed and innovative advice.
For instance, having secured a banking license in 1988, its board and management surmounted several headwinds to obtain a universal banking license from the Central Bank of Nigeria (CBN).
But the much needed transformation came in March 2002, when the Board of Directors appointed Aigboje Aig-Imoukhuede as Managing Director/Chief Executive Officer and Herbert Wigwe as Deputy Managing Director.
The mandate of the board was clear: Reposition the bank as one of Nigeria’s leading financial institutions within a five year period (March 2002 to March 2007). This task was perceived by many as impossible given the realities on ground then.
But undeterred by these challenges, the new management team subsequently created a transformational agenda for Access Bank which was a departure from all that the instittution was associated with in the past and became the road map for the conversion of the bank into a world class financial institution.
The impact of the transformation agenda was reflected in the first year.
A few years later, AccessCorp grew its balance sheet by 100 per cent and posted an impressive N1 billion profit before tax (PBT). The PBT figure was more than the cumulative profit made by the bank in the previous 12 years. This also marked the beginning of what would be a six year record triple-digit growth trend. Similarly, earnings per share (EPS) had rebounded to 21 kobo from a negative 2 kobo position, leading to a declaration of a 5 kobo dividend to shareholders for the first time in three years.
Since then the bank has grown from strength to strength and having acquired the defunct Diamond Bank, and changed to a holding company, the bank can boast of millions of customers round the globe. Experts have said that the company has a knack for consistently seeking ways to expand its service platform across the African continent.
The bank currently operates through a network of about 366 branches across major cities and commercial centers in Nigeria, Gambia, Sierra Leone, Zambia, Rwanda and Democratic Republic of Congo. All of these expansions can be traced to the group’s key strategic enablers structured to drive its continental ambition to fruition in the shortest time possible.
However, plaudits must go to the “helmsman” who have worked tirelessly to stick to the board’s vision for growth and innovation which was indeed driving the group’s success at the moment.
That helmsman that has taken the bank to the historic moments of glory is the Group Chief Executive Officer, Access Holdings Plc, Herbert Wigwe.
This is because under his stewardship, Access Holdings restructured towards an ecosystem orchestrator involving 5 verticals – the bank (Access Bank), Lending Company (LendCo), Payment Company (PayCo), Insurance and Pensions.
Explaining to the public at a presentation in Lagos recently, Wigwe revealed that plans are ongoing to deepen its financial footprints across Africa and extend its services to the continent’s large unbanked population.
“Access Corporation’s ambitions will be supported by seven key enablers. These enablers will ensure Access executes seamlessly, becoming a top five financial services institution in the continent by the end of the strategic cycle in terms of revenues, asset base and on a balanced scorecard basis. We are 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. We know that we would be in the eye of the storm, having transformed to become a leading financial and ecosystem player, with its core business as the foundation. The banking group would act as a nexus to drive transformation for the corporation, while its retail banking arm aims to evolve into a digital sales and service provider by 2027”, Wigwe said.
Having launched and sponsored several initiatives aimed at developing the continent’s economic and social ecosystems across diverse touchpoints, 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.
A look at the group’s first quarter (Q1) 2023 Unaudited Consolidated and Separate Financial results revealed a double-digit EPS growth (+26.4 per cent y/y to N2.06 as against Q1 2022 figure of N1.63). The rise in the Holdco’s earnings was supported by the strong growth across its funded (+46.4 per cent y/y) and non-funded (+42.5 per cent y/y) income lines.
The Holding Company’s (Holdco) gross earnings maintained its upswing as it increased to N424.917 billion in the review period, higher than the N295.736 billion recorded in Q1 2022. Its profit after tax which declined marginally at the end of 2022, improved in Q1 2023, to N71.636 billion, compared to N57.825 billion it realised in Q1 2022.
Furthermore, the group’s 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.
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.
Conclusion
Clearly, at the end of the day, the massive continental expansion which the Herbert Wigwe-led financial institution embarked upon a few years back appears to have started yielding the expected benefits. Wigwe does not appear to be slowing down on his mission to enhance AccessCorp’s ambition of being the financial hub as the gateway to Africa. He has remained resolute in the pursuit of the directors goal to make AccessCorp a global brand that African businesses and the global business community can leverage upon to achieved their dreams.
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