By Celestine Ajayi
In a bid to expand its tentacles, Access Bank Plc has announced that it received approval from South African and Nigerian regulatory authorities to acquire South African-based financial institution, Grobank Limited.
According to the announcement, the approvals constitute a significant milestone in achieving completion of the transaction by the second quarter of 2021. This milestone further solidifies Access Bank Plc’s outside revenue plan especially after the announcement that its Zambian subsidiary (Access Bank Zambia) has finalized the acquisition of Cavmont Bank Limited.
Speaking on the development, the Chief Executive Officer, CEO of Access Bank, Mr. Herbert Wigwe said “Today’s announcement represents significant progress in delivering on our strategic intent of becoming Africa’s Gateway to the World in pursuit of our vision to be the World’s Most Respected African Bank.”
Nigeria’s biggest banks such as Access Bank, Guaranty Trust Bank Plc, and Stanbic IBTC Holdings Plc are diversifying outside their core operations or expanding across Africa in an attempt to increase revenue after the outbreak of the Covid-19 pandemic.
The bank’s expectation of 30% profit outside its Nigerian base, through a series of acquisitions in East and West Africa, is coming to fruition.
Recall that the bank is looking to transition to a holding financial institution this year which will enable it to open subsidiaries in insurance brokerage and payments.