Access Holdings is to raise more capital outside of its internally generated capital to fund its strategic five-year (2023-2027) growth plan.
Mr Roosevelt Ogbonna, the Chief Executive of Access Bank, said this during the presentation of the Access Corporation’s corporate strategy 2023-2027.
He said that the corporation needed to work with its DFI partners and international financial markets to achieve the capital raise.
Ogbonna said that the capital plan had been done and shared the plan with the central bank, “but we cannot share it in an open forum like this.
“But I can give context and I can give colour as to what exactly it is.
“The capital plan suggests that on a go-forward basis, we will need beyond internally generated capital, we will need to work with our development Finance Institutions (DFI) parners, as well as our international financial markets to raise both, senior debt as well as quasi-equity to support our growth,” he said.
Mr Herbert Wigwe, the Group Managing Director of Access Holdings, said that by 2027, the group would expect the Nigerian subsidiary to be contributing about 52% of revenues compared to the 82% revenue it contributed to group revenue as of Q3 2022.
He said that the new verticals would also be contributing 12% of total revenues, as revenues from African Subsidiaries were expected to double over the next five years.
Wigwe said that Profit Before Tax (PTB) contributions from Nigeria Bank are expected to reduce from 63% (9M’22) to 33%, while the new verticals are expected to contribute 19% of the profitability by 2027, while African Subsidiaries will contribute 20% as its footprint grows across the Continent.
Wigwe said the Net Interest Margin (NIM) would be at least 6% in 2027, according to him the growth in NIM will be driven by increased lending within the core Bank and by the growth in LendCo’s business which will typically have higher margins on average.
He said that there was an opportunity for Access to extend financial services to the unbanked and deepen its financial services offerings to banked customers across Africa.
Wigwe said that consolidation showed that retail grew to 52 million customers surpassing the original aspiration of 35 million between 2018 and 2022.