Acquisition: Access Bank projects 30% profit from African subsidiaries

ACCESS Bank Plc, has said that it expects to generate as much as 30 per cent of profit outside its home market, following a series of acquisitions last year spanning East and West Africa.

This is according to a report from Bloomberg, in a response from the bank to questions through Whatsapp.

The bank which just got regulatory approval to become a holding company expects its African subsidiaries and UK unit to contribute about 25-30 per cent of profit before tax in the next 3 to 5 years from 21 per centin the third quarter.

The bank in its statement stated that the same level of growth that is expected on pre-tax profit is also projected for assets, deposits, and revenue.

Access Bank, which currently operates in 12 countries, said that it hopes to expand to eight new African markets by setting up offices in some countries, partnering with existing banks in some nations, or deploying digital platforms to provide services to customers.

Access Bank in its statement said, “We see strong contributions from our key African markets, regional hubs, and our outside of Africa international business driven out of the UK.’’

It said that it plans to grow its risk assets by 10% this year to provide support to customers whose businesses are benefiting from the coronavirus pandemic such as telecom and health companies.

The bank further said that although Nigeria just exited a second contraction in four years in the fourth quarter, they are still skeptical as they pointed out that the sluggish economy gives no incentive to further boost lending.

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