Access Bank to spend N24 billion on new branches in three cities

Access Bank Plc will invest N52 billion in branch expansions and upgrades, including ATM and Point of Sale (PoS) machines, according to its parent company, Access Corporation.

The investment is part of N343 billion new capital that company began raising via rights issue launched earlier this week to comply with new regulatory requirements set by the Central Bank of Nigeria. The expansion will focus on Lagos, Port Harcourt, and Abuja.

The details of the investment are outlined in Access Corporation’s plan for the use of the new capital. The company is issuing over 17 billion additional shares to existing shareholders at N19.75 each, on the basis of one share for every two ordinary shares held as of June 7. Shareholders have until August 14 to take up the offer.

“The additional investment by Access Holdings in Access Bank will: i) enhance Access Bank’s capital adequacy, in compliance with the regulatory capital requirements, thereby deepening the Bank’s ability to withstand systemic shocks; ii) strengthen the fortress balance sheet of the Bank, allowing it to meet the growth needs of the Bank and its banking subsidiaries, in line with the Group’s medium-term strategic objectives,” the company said in the document seen by Pluboard.

IT and Lending

Access will allocate 20% of the funds to upgrading IT infrastructure, including cybersecurity, it said. The majority of the funds, 65% or N223 billion, will be used to expand both local and international lending. The corporate and commercial business segments will receive the most substantial portion, followed by retail business segments and SME customers.

Access Bank, one of Nigeria’s largest financial institutions, reported total assets exceeding N27 trillion and a profit before tax of N619 billion at the end of 2023.

The bank operates over 747 branches and service outlets in Nigeria and has a presence in 22 countries, including the United Kingdom, Ghana, Kenya, and South Africa. Recent acquisitions in Mozambique and Zambia further extend its reach in Sub-Saharan Africa.

In addition to Access Bank, Access Corporation owns fintech company Hydrogen, digital lending company Oxygen X, and various pension and insurance units.