Access Bank revealed motives put in place to acquire the Transnational Bank Limited of Kenya.
Following the deal which was signed exactly seven months after the final Merger of Access bank and Diamond bank who successfully consummated a business combination deal with the defunct Diamond Bank, would see the bank expand its footprint in Africa.
Speaking on the new development, the Managing Director/Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe, confirmed the development and was quoted in a telephone chat.
He assured and anticipated that the deal would be finalised before the end of next week.
Wigwe also said Access Bank would formerly notify the Nigerian Stock Exchange (NSE). Wigwe said; the acquisition aligns with Access Bank’s strategic vision.
He said: “We are going to issue a statement on the Nigerian NSE today. Kenya is a big market in Africa, it is a major trade route and major payment corridor.
“This aligns with our strategic vision. We have our own regulatory and board approvals. In Kenya, the bank is going through its own regulatory process. But the deal is imminent, so it could happen this week or next week.”
It was gathered that the Access Bank would acquire 93.57 per cent stake in the Kenyan bank as it seeks to consolidate its presence in the continent.
Access Bank would now join GT Bank and the United Bank for Africa Plc, two other Nigerian banks with presence in the Kenyan market.
Access Bank Plc had recently reported a significantly improved performance for the nine months ended September 30, 2019, reflecting the positive impact of its previous merger with the defunct Diamond Bank. The bank posted a growth of 44 per cent in profit after tax (PAT) to N90.7 billion in 2019, up from N62.9 billion in the corresponding period of 2018.
The breakdown of the performance showed that Access Bank Plc ended the period with net interest income of N210 billion, compared with N123 billion in 2018, while non-fee income rose from N37 billion to N56 billion. Impairment charges stood at N10.611 billion, compared with N8.353 billion in 2018.
Furthermore, Personal expenses went up from N41.4 billion to N54.6 billion, while other operating expenses increased from N82 billion to N121 billion in 2019. Despite the high costs recorded, Access Bank Plc posted a profit before tax of N103 billion in 2019, up from N70.2 billion in 2018, while PAT rose by 44 per cent to N90.7 billion, from N62.9 billion in 2018.
It is noteworthy that, further analysis of the results showed that its merger with defunct Diamond Bank is yielding fruits as deposits soared from N2.56 trillion to N4.24 trillion, while loans and advances improved from N1.993 trillion. Total assets jumped from N4.942 trillion to N6.58 trillion.