Access Bank promises shareholders better returns on investments

The Chief Executive Officer of Access Bank Plc Herbert Wigwe has assured shareholders of sustained healthy dividend payout, saying  given the position of the bank today in the industry it is well positioned to  achieve significant growth in profitability and pay higher dividend.

Addressing shareholders at the Annual General Meeting (AGM) in Lagos, Wigwe said  Access Bank has healthy capital adequacy ratio, a robust balance sheet and strong brand  that would lead to a better performance in the years ahead.

Access Bank recorded a profit after tax of N106 billion in 2020, up by 13 per cent from N94 billion in 2019 and  recommended a final dividend of 55 kobo per share for the year ended December 31, 2020 to bring the total dividend to 80 kobo having paid an interim dividend of 25 kobo earlier.

Wigwe  said shareholders should expect better dividend that would be sustain given the various strategies  put to grow the business.

According to him, Access Bank is best positioned to maximize the identified opportunities in Africa on the back of a growing customer base and the move to a cashless economy.

“We have identified Africa to be a vast pool of opportunities with over 370 million unbanked adults, US$9.2 billion in remittances and cross border payments, 89 cities of over 1.3 billion inhabitants by 2025 and the overall African financial ecosystem. We also see opportunities coming from the new African Continental Free Trade Area (AfCFTA), as it is expected to expand intra-Africa trade to 53 per cent by 2022, eliminate tariff on qualifying trade and increase financial flows,” he said.

Wigwe noted that the series of mergers and acquisition they had  undertaken since 2005 have all been value accretive, adding they  had commenced green field operations in Mozambique and completed the acquisition of Transnational Bank and Cavmont Bank in Kenya and Zambia respectively to strengthen and increase  their market presence.

In her address, Chairman of Access Bank Plc, Dr. Ajoritsedere Awosika, said in 2020, the bank  made several investments to strengthen relationships with its customers in the year. “By redefining our approach to customer service through streamlining our internal processes, and digitizing about 30 per cent  of customer journeys, we were able to improve on our customer experience.

“Also, we were able to manage our expenses in line with the target for 2020 despite double digit inflation and overall cost of running the enlarged enterprise. As a result, we achieved a Cost-to-Income Ratio (CIR) of 63.4 per cent from 66.1 per cent in 2019.We worked hard to recover and dispose of a significant portion of our non-performing assets. With a decline in the portfolio of overdue loans, our asset quality improved across our retail and wholesale segments. Ourcapital and liquidity ratios were also well above regulatory limits with our capital adequacy ratio remaining strong at 20.6 per cent,” she said.

Looking ahead, Awosika said Access Bank would  grow its  businesses and continue to invest in IT capacity until it becomes  an incredibly strong bank for retail and wholesale customers around the world.

Shareholders at the AGM commended the board and management for the efficient for their efficient running of the bank. For instance, Mr. Eric Akinduro of Ibadan Zone Shareholders Association, commended the bank for sailing through the Covid-19 pandemic and delivered improved results that led to the declaration of 80 kobo dividend.

He said the various acquisitions  by Access Bank across Africa, showed that the institution is very strong and pledged support of the shareholders.

Sir Sunny Nwosu of Independent Shareholders Association of Nigeria said given the expansion drive,  the bank is really aiming to play a leading role on the African continent. According to him, that is good development that lead to better returns to shareholders and other stakeholders going forward.

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