Access Bank to transform to Holding Company, opens operations in Mozambique
Access Bank has said that it plans to consolidate its operations into a Holding Company (HoldCO) follow regulatory approval in principle in a bid to accelerate its business diversification objectives.
In a regulatory communication with the Nigerian Stock Exchange (NSE), the bank said “it has received the Central Bank of Nigeria’s approval-in-principle to restructure to a holding company.”
The proposed HoldCo structure, according to the management, will enable the bank to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.
The bank said its shareholders would benefit from the economies of scale of a larger banking network, including the associated cost efficiencies arising from the bank’s federated IT system and replication of investments in innovative products across a wider range of markets.
The planned restructuring also came on the heel of the announcement of the expansion of the lender operations into Mozambique under the trading name Access Bank Mozambique and a step toward entering South Africa.
”Through these transactions, Access Bank will be well placed to promote regional trade finance and other cross-border banking services, further leveraging its presence in key global trade corridors in the UAE, the UK, China, Lebanon and India,” the bank said in a statement.
A broader and connected Africa network remains a core strategic focus for geographic earnings growth and diversification, which will further enhance profitability and risk metrics.
Sterling Bank had also announced its plans to restructure into a holding company to boost its efficiency and enhance its business operations.
In an announcement, the lender chief executive officer, Abubakar Suleiman said; “Going into the Holding Company structure, our desire is to entrench our business model premised on social capitalism where we believe that private sector capital and market-based tools will offer the best types of solutions to Nigeria’s most pressing social and environmental challenges.
Analysts said the implications of the proposed new structure is that the bank will be delisted from the board of the Nigerian Stock Exchange while it will be replaced by the Holding Company, which will serve as the parent firm.
Also, the board of the bank has to appoint a new chief executive to manage each of the subsidiaries while a chief executive will be appointed to overseer the holding company going forward.