Again, Access Bank Secures Deal To Take Over Another Bank, CEO Shares Excitement
- Access Bank United Kingdom, a subsidiary of Access Holdings, has agreed to acquire a majority stake in Afrasia Bank
- Afrasia Bank is Mauritius' fourth-largest bank and will further help Access Bank expand into more African markets
- Roosevelt Ogbonna, the managing director/CEO of Access Bank Plc and CEO of the Banking Group, shared his excitement
Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.
Access Holdings Plc, through its banking subsidiary, Access Bank UK Limited, has secured a deal to acquire a majority stake in Afrasia Bank Limited, Mauritius' fourth-largest bank by assets.
The deal was disclosed in a statement on the Nigerian Exchange (NGX) signed by Sunday Ekwochi, Access Holdings’ secretary.
Source: Getty Images
After recent Kenya and Tanzania acquisitions, the Afrasia Bank deal represents a strategic leap in Access Bank’s regional ambitions.
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Access Bank takes over Afrasia Bank Limited
According to the disclosure, Mauritius’ solid financial ecosystem will enable Access UK to grow its service offerings and customer base across high-growth segments.
Mauritius’ financial sector accounts for 13.4% of the country's Gross Domestic Product. ThisDay reports.
The statement from Access Bank reads:
"Access Holdings Plc (“Access Holdings”) today announces that its banking group’s subsidiary, The Access Bank UK Limited (“Access UK”), has entered into a binding agreement to acquire a majority equity stake in Afrasia Bank Limited (“Afrasia Bank”), the Republic of Mauritius’ fourth-largest bank by total assets.
"Mauritius, renowned for its robust financial services sector, which contributes 13.4% to its gross domestic product, provides Access UK with a solid foundation to expand its operations in the high-growth personal and corporate banking segments.
"Furthermore, Access Bank will utilises Mauritius as a strategic hub for trade finance and regional connectivity, thereby enhancing its capacity to facilitate cross-border transactions across Africa and beyond.
"The transaction represents a transformational step forward for Access UK and the overall Access Holdings banking franchise.
"At the end of its fiscal year on June 30, 2024, Afrasia Bank recorded total assets of more than US$5.7 billion and a net profit after tax of US$152.4 million."
CEO speaks on Access Bank deal
Commenting on the acquisition, Roosevelt Ogbonna, managing director/CEO of Access Bank Plc and CEO of the Banking Group, said:
“This acquisition marks a pivotal moment in our African growth strategy, reinforcing our position as a leading Pan-African financial institution. Mauritius offers immense potential as an international financial hub, and through Afrasia Bank, we are excited to unlock new opportunities to drive trade, support businesses, and foster economic inclusion across the region as we continue our mission to be the World’s Most Respected African Bank.”
Jamie Simmonds, managing director of Access Bank UK, added:
“With a strong balance sheet and a well-established brand in Mauritius, Afrasia Bank provides us with a sustainable platform to scale and achieve long-term profitability.
"The deal aligns with our strategy to diversify and future-proof our earnings and offer bespoke solutions enabling our clients to access global markets with ease.”
10 banks with highest customer deposits in 2024
Earlier, Legit.ng reported that Nigerian commercial banks have recorded an increase in customer deposits so far in 2024 despite the economic situation
United Bank for Africa leads the list, followed by Access Holdings, the parent company of Access Bank.
The CBN has consistently assured Nigerians that banks are safe and funds in customers' accounts are fully secured.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
