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Access Holdings Leads Others In Interest, E-Banking Earnings

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Nigeria’s largest company by assets, Access Holdings Plc, leads the pack with the highest interest income of N497.47 billion in nine months ending September 30, 2022, among the esteemed Tier-1 players in the banking sector. The foremost financial service institution also came tops in revenue from e-banking among its peers in the league of Tier-1 banks, which are United Bank for Africa (UBA) Plc, Zenith Bank Plc, FBN Holdings Plc and GTCO Plc.

Data compiled from their financial statements for the period show that Access Holdings grew its interest income by 25.9 percent from N395.13 billion in nine months of 2021 to the current level of N497.47 billion. The rising numbers which also reflected in the e-banking fees saw revenue from this window rise by 9.5 percent from N45.08 billion in the corresponding period to N49.39 billion. The marginal increase placed Access Holdings above its peers in the distinguished club.

Africa’s Global Bank, United Bank for Africa (UBA) Plc came second with interest income of N420.33 billion as against N343.79 billion posted in the corresponding period (nine months of 2021) representing a growth of 22.3 percent. The bank’s revenue from e-banking channels was N47.95 billion from N45.96, or 24.5 percent rise.

Zenith Bank Plc, the largest financial services institution by market size, earned N390.75 billion from interest income during the nine months to September 30, 2022 as against N308.84 billion in the preceding period. This shows an increase of 26.6 percent. The firm’s e-banking channels generated a significant revenue growth of 50.5 percent from N23.99 billion in nine months of 2021 to N36.09 billion in the review period.

The behemoth, FBN Holdings Plc, pooled N370.36 billion from interest income representing 42.4 percent increase compared with N260.11 billion in the preceding period, while e-banking fee dipped by 4.9 percent from N42.02 billion to N39.97 billion. GTCO Plc grew its interest income from N178.30 billion to N204 billion or 14.5 percent.

The companies’ balance sheet size also reflected their interest and e-banking earnings trajectory with Access Holdings recording 13.41 trillion while Zenith’s is N11.34 billion. FBNH and UBA assets are N9.85 and N9.31 trillion respectively.

Access Holdings has maintained a rising trajectory in credit expansion apparently in compliance with the 65 percent loan deposit ratio (LDR) policy of the Central Bank of Nigeria (CBN). The company is also ahead of its Tier-1 peers with N4.62 trillion loan and advances to customers in nine months ending September 30, 2022 – an 11 percent increase from N4.16 trillion as of December 31, 2021. Its Customer deposit also tops the league of Tier-1 banks: N8.18 trillion from N6.95 trillion in FY 2021.

Investigation showed that Zenith Bank came second in loan and advances to customers among the Tier-1 banks, with N3.88 trillion followed by UBA which recorded N3.1 trillion. Zenith Bank’s customer deposits was N8.1 trillion while UBA posted N7.1 trillion. FBN Holdings posted loans and advances of N3.59 trillion and customer deposits of N6.6 trillion.


Analysts at Proshare said the banking sectors have seen a significant rise in interest income this year with the high-interest rate environment, which helped to widen their profit. The practical move by CBN to sanction banks that violated the cash reserves ratio (CRR) policy vis-à-vis minimum lending portfolio must have forced the DMBs to intensify their credit expansion policies. “The deposit money banks are faced with the dilemma of satisfying the regulatory requirements and stepping into risk environments that could burn their fingers. They have no option than to lend, all the same,” said Jonah Kalu, a financial analyst.

Commenting on the Access Holdings performance, National Co-ordinator, Pragmatic Shareholders Association of Nigeria (PSAN), Ms Bisi Bakare, said the outstanding record in interest income was not a surprise given the bank’s aggressive expansion programme within and outside Nigeria.

She said, “Access Bank leading in interest income is not really surprising because of their strong tentacles within and outside Nigeria. Access Bank keeps acquiring big and small banks and expanding their operations rapidly.”

She said the bank and its peers in the Tier-1 league have performed to the delight of their shareholders.

The five Tier-1 banks recorded a combined loans and advances of N18.81 trillion in the nine months ended September 30, 2022 against N14.54 as of December 31, 2021, representing an increase of 30 percent. Their combined customer deposits for nine months ending September 30, 2022 was N33,21 trillion compared with 30 trillion in FY 2021, representing a 10.6 percent rise.

Data from the five Tier-1 banks’ FY 2021 show they recorded a total assets of N44.07 trillion and combined revenue of N33.63 billion. They paid a total income tax of N145 billion and employed a total of 34,000 pay-rolled workers. Their combined market capitalisation stood at N2.56 trillion as of December 31, 2021.

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Business

Access Bank Targets 200,000 Closa Agents In 2023

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In a bid to satisfy its customers and make banking easier, Access bank Nigeria Ltd has disclosed its intention to increase its Closa agents from 160,000 to 200,000 nationwide in 2023.

Regional Sales Manager of the bank Chidozie Chukwu, who disclosed this during the unveiling of the Access Closa agent in Owerri, explained further that they intend to reach both the rural and urban areas.

The agents he added were already trained to carry out all transactions of the bank, thereby preventing rush and long queues experienced at the bank.

He said “We have already hit one hundred and sixty thousand of our agents across the nation and we are targeting two hundred thousand. Our Closa agents will make banking easier, distance and long queues experienced by customers will seize.

“On our own part, it will enable us to reach out to locations where we can not reach out to; it will allow the people also to key into banking; we would be at every nook and cranny of the country,” Chukwu said.

Already, Chukwu noted that 100 of the Closa agents have been trained to transact business with their customers in Imo State, adding that the empowerment of the agents will reduce unemployment.

Rob Giles, Senior Retail Advisory of the bank earlier informed that customers can locate a Closa agent near them by simply searching for ‘Access Closa Agent’ on Google Maps on their phone instead of walking long distances in search of a branch.

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UBA Customers Assured Of Memorable Christmas In Super Savers Draw, N22.5m Up For Grabs

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Africa’s Global Bank, United Bank for Africa (UBA) Plc, has, once again, assured its loyal customers of a remarkable Christmas celebration, as the bank plans to reward them with exciting prizes in its upcoming Super Savers Draw.

The draw is open to all UBA account holders in Nigeria and will be held on December 16, at UBA House, Marina, where the bank will be giving out N22.5 million to its loyal customers.

The unique draw has something big for everyone and intends to appreciate customers of the bank who have cultivated a savings culture and stayed loyal to the bank over the years.

It will also offer fresh opportunities to intending customers to join the growing number of UBA millionaires and lucky winners who have, in the past, benefitted from various promos held by the bank.

In this edition, 23 lucky customers with UBA Bumper accounts will smile home with a grand prize of either N2 million, N1.2 million rent for a year, N500,000 shopping allowance and N100,000 cash prizes.

Ten customers with UBA Savings accounts will, equally, be rewarded with N1 million each, 10 students of tertiary institutions and Youth Corps members with a UBA NextGen account will get a pocket money reward of N180,000 for a year, while 20 children with a UBA Kiddies or Teens Account will get rewarded with N200,000 school fees grant.

New customers can simply dial *919*20# to open a UBA account or visit www.ubagroup.com/supersavers for more information and start saving, while existing customers, who intend to qualify for this mega draw, can simply save N5,000 in their UBA Bumper or NextGen account, N10,000 in their UBA Savings account, or maintain a standing instruction of, at least, N10,000 every month into a UBA Kiddies & Teens account, as the more they save, the higher the chances of winning big.

As a spin off in this Xmas special draw, one lucky Domiciliary Savings account holder will also bag a N1,000,000 cash prize. All the customer needs to do is open a UBA Domiciliary Savings Account with the Bank Verification Number and maintain a minimum balance of $100 or its equivalent in other currencies till December.

Speaking ahead of the forthcoming draw, Head of Retail, Digital and Transaction Banking, Sampson Aneke, said UBA is passionate about actualising the dreams of its customers, as the bank is relentless in helping them grow by making more and more of its customers millionaires.

He said: “As always, we have decided to make this Christmas a very merry and memorable one for all and have put in place quite a lot to make it happen. UBA always walks the talk and never relents in helping its customers succeed. Our customers are special to us, and this is another opportunity to prove just that.”

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Business

Access Bank Disowns Fake News On Cryptocurrency

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Contrary to an unsubstantiated report circulating on the internet, Access Bank Plc has not launched any Bitcoin bank or introduced a cryptocurrency product.

A statement by the management dissociated the financial institution from the information pushed out by a fictitious webpage.

The article shows the photographs of the Managing Director, Mr Roosevelt Ogbonna, illicitly downloaded from Access Bank’s social media pages.

The images were then manipulated to fit the misleading narrative being promoted in the bogus article.

“The quotes also attributed to Mr Ogbonna in the contrived interview are also completely false”, the disclaimer reads.

“For the record, at no time did Mr Ogbonna grant any interview on the subject of a Bitcoin bank or made any comment on cryptocurrency business.

“Access Bank continues to maintain its absolute commitment to excellent practices in accordance with the laws of Nigeria.”

The statement said the bank is cooperating with the authorities to investigate the source of the fake news to ensure the perpetrators are brought to justice.

“The board, management and staff remain committed to transparency, outstanding corporate governance, and the promotion of global best practices for the good of our customers and all stakeholders”, it added.

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