Lagos, Nigeria-MON, MARCH 25 2019-theG&BJournal-Access Bank Plc, which is in the process of taking over rival Diamond Bank, recorded the fastest profit expansion in the Nigerian banking industry.
Data gathered by theG&BJournal shows Access Bank’s net income increased by 58.07 percent to N94.98 billion as at December 2018, this compares with Zenith Bank’s profit expansion of 11.30 percent, Guaranty Trust Bank (GTBank), 10 percent; and United Bank for Africa (UBA), 13.65 percent.
Earnings of big lenders in Africa’s largest economy have been growing at a slow pace since the start of 2018 as yield on short term government securities nosedived. Also, with contraction in loan books owing to scheduled pay-downs on the back of improved foriegn exchange liquidity has continued to undermine revenue growth.
Amid the above challenges, Access Bank recorded a 19.09 percent increase in interest income to N380.91 billion this compares with a 6.22 percent increase in GTBank’s interest income, UBA 11.44 percent, while Zenith Bank recorded a 7.28 percent reduction in interest income and similar charges.
Access Bank is unrelenting in its quest to increasing its share of the Nigerian financial market as it continues to exploit both organic and inorganic strategies.
The Tier lender signed an agreement for a $162.5 million loan to boost its capital and fund lending operations.
Dutch development bank, FMO, is arranging the loan, while financial institutions including Belgian Investment Co. for Developing Countries, Blue Orchard Microfinance Fund, Finnish Fund for Industrial Cooperation Ltd. and Ecumenical Development Cooperative Society U.A. are providing the financing, the Lagos-based company said in a statement.
Access Bank agreed last year to buy Carlyle-backed Diamond Bank in a deal worth about $200 million. It plans to complete the takeover on April 1 after the shareholders of both banks approved the deal last week.
With the merger, Access Bank will become the largest lender by asset, and deposit base.
The business combinations will enable Access Bank leverage on the Diamond Bank’s retail banking segment and branch network across the country.
|twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
