Awards for Excellence 2016
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Nigeria’s economy has struggled over the past year. The country’s new president Muhammadu Buhari has had to deal with the financial impact of low oil prices, systemic corruption and the terrorist group Boko Haram. But one Nigerian bank, Access Bank, has continued its long-term transformation from small financial institution to big player, despite the odds, winning our best bank transformation award this year.
The bank’s long-term plan – to become “the world’s most respected African bank by 2017” – may sound grandiose, but beyond the rhetoric is an impressive story of sustained development. Access has enjoyed extraordinary growth over the past decade, rising from the 65th position in 2002 to become one of the top three banks in the country in 2015. In fact, it grew so fast that it achieved its top-three aspiration two years earlier than it had hoped. From 60 branches in 2007, it now has 371.
To achieve its long-term goals, the bank sets specific objectives at the beginning of each year. Last year was no exception, as the bank recorded the highest growth in earnings compared with its peers: N302 billion, a 40% increase on 2014. Profit before tax, meanwhile, soared to N65 billion, up 41% from 2014.
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Although 2015 was a year when the Nigerian financial system came under extraordinary strain, Access Bank achieved another new high in earnings, highlighting the value of its customer focus and investment in technology.
Loans and advances grew to N1.2 trillion and total assets to N2.4 trillion, 22% increases from 2014 levels. Customer deposits increased by 15%, to N1.5 trillion, well above industry average of 0.5%.
Access Bank has relied partly on acquisitions to reach its position among Nigeria’s top banks. Access acquired two other Nigerian banks in 2005, for example. Most important, however, has been the completion of its 2010 acquisition of Intercontinental Bank, one of the biggest lenders to fall foul of the country’s post-2008 banking crisis.
And as part of its five-year strategy, the bank has also set itself the goal of becoming a digital bank. A testament to the bank’s momentum in digital banking is its PayWithCapture (PayWC) service, a digital platform for making payments. Since its launch in September 2015, PayWC has recorded nationwide sign-up by over 36,000 merchants and over 990,000 customers.
