Access Bank’s ‘W’ Initiative empowering millions of women

…Corporate governance record second to none, say shareholders

COMFORT EKELEME

The bank’s initiative no doubt is among the reasons why its customer base has continued to increase on yearly basis, while posting impressive results. At the end of 20116 financial year Access Bank said the activities of the ‘W’ initiative spread through Sub-Sahara Africa and across the web to social media platforms during the year.

More than 2 million female customers and women around the world had access to the educational and informative articles, information on capacity building and networking events, as well as timely updates on developments that affect their personal and family lives, careers and businesses. Many women had reasons for repeat visits to the website and for extending invitations to their friends.

Also, the bank’s special focus on economic empowerment of women has over the years foster the growth of Small and Medium Enterprises (SME’s) in Nigeria with its resultant social and economic benefits and has attracted industry recommendations.

In 2006, Access Bank began a journey into the world of women and banking. After working through the Gender Empowerment Movement to invest on women for eight years, the programme evolved into a robust plan to provide women with banking solutions that meet their diverse career and lifestyle requirements named The ‘W’ Initiative.

According to the bank, The “W” is not a product, rather it is a blend of existing banking products and services bundled to effectively meet the present-day financial and lifestyle needs of women in identified sub-segments, as well as provide them with a complete and rewarding banking experience. The W, based on peculiarities and lifestyle classification, is segmented into the following; The “W” is the home for everything Access Bank offers women and is open to all women irrespective of who they bank with. Also, The W Initiative does not only benefit the women, but also the men in their lives; as they are either directly or indirectly impacted through the women in their lives who have benefitted from the scheme.

So far, business women in Lagos, Port Harcourt, Ibadan and Abuja have benefitted immensely from the workshop with a good number of female entrepreneurs testifying to have increased their business network, improved their business model and are thriving through the economic constraints with ease. The decision to empower Nigerian women was borne out of the bank’s belief that women are a powerful and key catalyst for change and has embraced the truth about empowering women.

In December 19, 1988 Access Bank was issued a banking license, February 8, 1989 Access Bank was incorporated as a privately owned commercial bank, May 11, 1989, it commenced operations at its Burma Road, Apapa Head Office. March 24, 1998 the bank became a Public Limited Liability Company.  In November 18, 1998 it was listed on the Nigerian Stock Exchange (NSE), while in February 5, 2001it obtained a Universal Banking License from the Central Bank of Nigeria (CBN).

Over the past 26 years, Access Bank Plc. has evolved from a Nigerian bank into a world-class African financial institution. Today the bank is one of the five largest banks in Nigeria in terms of assets, loans, deposits and branch network; a feat which has been achieved through a strategic and robust long-term approach to client solutions, providing committed and innovative advice. It is a Nigerian multinational commercial bank, owned by Access Bank Group and licensed by CBN and driven by strong core values through which it has continuously delivered solid and consistent performance.

The bank currently operates through a network of about 371 branches across major cities and commercial centers in Nigeria, Gambia, Sierra Leone, Zambia, Rwanda and Democratic Republic of Congo and operates seven subsidiaries within West Africa, East Africa and the United Kingdom. The Bank also has a business office in the Republic of China, as well as Beirut, UAE, and Mumbai.

It is on record that Access Bank Plc is one of the Deposit Money Banks (DMBS) that has consistently paid dividends to its numerous shareholders at the end of each financial year. This, shareholder said is among the reasons why they have remained with the bank, while describing Access Bank as one in the neighborhood.

It is little surprise therefore that the bank’s results at the end of the 2016 financial year shows that its investment in innovative solutions is paying off handsomely. Amidst the economic recession, Access Bank in 2016 reported growth across all business lines leading to total revenue of N381.3 billion and Profit Before Tax of N90. billion, representing growth of 13per cent and 20 per cent respectively over the same period in 2015 and proposed a final dividend of 40 Kobo per share bringing the total dividend for the year to 65 Kobo.

Group Managing Director of the Bank, Mr. Herbert Wigwe in his reaction said that despite the challenging economy, 2016 was a year of progress for Access Bank, adding that many of the strategic choices the bank made over the years were validated when tested by the economic recession.

He said, “We take pride in our ability to add value to clients, leveraging our unique value proposition to provide innovative and proactive solutions across entire economic value chains. In deploying products and services, the Bank adheres to responsible business practices and readily commits resources to social investments in fulfillment of its corporate social responsibility convictions.

“We are indeed on the brink of a new dawn in the evolution of the banking industry and in the international market at large. Access Bank is well-positioned to lead this change; armed with our tenacity, driven by an unwavering commitment to our vision, and guided by our brand promise of Speed, Service and Security,” he stated.

According to him, robust and proactive risk management practices and focus on high quality corporate bodies ensured that the bank maintained Non-Performing Loan, NPL ratio of 2.1 per cent; well below the industry average, whilst retaining a healthy balance sheet growth.

“We remain cautiously optimistic about the macroeconomic environment in 2017; nonetheless, our objective of delivering sustainable shareholder value remains unchanged. We will also continue to maintain our proactive and disciplined risk management practices and leadership in sustainability initiatives, whilst positioning ourselves strategically to take the lead in the markets we play,” he added.

Driven by strong core values through which it has continuously delivered solid and consistent performance, Access Bank is in business to help its growing customer base build a sustainable future by offering bespoke products and solutions through a skilled workforce across Sub-Saharan Africa, United Kingdom, the Middle East and Asia.

The Bank was licensed to provide international banking services and is renowned for its comprehensive range of financial product offerings. The key business segments of the bank include Corporate and Investment Banking, Commercial Banking, Business Banking and Personal Banking. Also the key customer segments are telecommunications, beverages, manufacturing, construction, Oil & Gas, Parastatals, High Networth individuals and middle income professionals.

It is worthy of note that Access Bank over the years has built its strength and success in corporate banking and is now applying that expertise to the personal and business banking platforms it acquired from Nigeria’s International Commercial Bank in 2012.

As part of its continued growth strategy, the bank is focused on mainstreaming sustainable business practices into its operations and strives to deliver sustainable economic growth that is profitable, environmentally responsible, and socially relevant.

2016 Performance

The Group delivered a resilient performance in 2016 with the overall results reflecting a strong and sustainable bank built on solid fundamentals and the effective execution of its strategic imperatives. The bank reported growth across all business lines leading to total revenue of N381.3 billion and Profit Before Tax of N90 billion, representing growth of 13per cent and 20per cent respectively over the same period in 2015.

Supporting this growth was a 32per cent year on year increase in net interest income of N139.1 billion (Full year 15: N105.4 billion), demonstrating the sustainability of our core business; and non-interest growth of 3per cent to N133.4billion, in full year 2016 from N129.4billion in full year 2015, driven by strong increase in our fees and commissions.

Access Bank’s prudent risk management kept the financial institution in good stead as the Bank maintained non-performing loans of 2.1per cent. Similarly, prudential ratios remained well above the regulatory limits with capital adequacy and liquidity ratios of 21per cent and 43.6per cent, respectively.

In the third quarter, the bank successfully raised $300 million senior unsecured notes, thus becoming the first Nigerian bank to raise dollar-denominated debt in 2016. This underscored the confidence of investors in the bank and signaled the return of investor confidence in the otherwise bearish Nigerian market. Additionally, the bank was rewarded with several accolades during the year capping an otherwise inauspicious year.

Dividend

The Bank has always maintained a balanced dividend payout ratio, based on a residual dividend policy. This policy is hinged on the sustainability of dividend pay-outs and capital planning. At the end of the 2016 financial year, the board approved the final dividend of 40 kobo per ordinary share, making a total of 65kobo for the year.

Shareholders react

Speaking with Daily Champion, a shareholder activist, Gbadebo Olatokunbo noted that Access Bank is a distinguished brand in the nation’s banking sector. According to him, in the nearest future, Access Bank would rank very high in global ratings. Over the years, he said diligence, great vision and determination are among the strategies deployed by the bank including sound policies and good corporate governance.

“Access Bank has sound vision and mission that were being pursued with serious determination. Their good corporate governance is second to none in the Nigerian banking industry. Access Bank regulates itself in every aspect of banking practices. I implore retail investors to always purchase more of its stocks. Every year is a bonus to shareholders in terms of dividend payout. The bank is a success story”, he said.

In separate reaction, National President, Constance Shareholders Association of Nigeria, Alhaji Shehu Mikail said that Access Bank in all its branches deliver efficient services to customers.

“Since after capitalization, Access Bank has been consistent in paying dividends to shareholders, which shows that they have the interest of shareholders at heart. And the major aspect of shareholders interest is paying dividend year in year out.  We demand a quality dividend payout. Access Bank is reliable, effective,” he said.

According to him, the unique selling point of the bank lies in the way and manner services are delivered, adding that the bank has cordial relationship with customers, attracting more deposits to the bank and a good network of service.

Looking ahead

According to the Bank’s Group Managing Director/CEO, “We have also maximized our strong market position and solid capital base, while leveraging on digital innovation to improve service touch points. Beyond our impressive financial results and wide array of awards, our myriad of innovative products affirms our commitment to becoming the World’s Most Respected African Bank by year end 2017. Looking ahead; the Division is positioned to go beyond offering traditional banking services to SMEs. Our approach to growing our SME businesses and ensuring a secure tomorrow for our customers and consequently ourselves, involves leveraging our robust IT systems to provide up-to date services in the coming year. The Division will place special focus on certain key growth sectors, such as export-oriented.

“The potential for growth in 2017 is enormous and we are confident that greater feats will be recorded in the coming year. We are positive that the present economic climate only provides yet another platform for us to win against all odds and achieve our vision of becoming the world’s most respected African Bank.

The “W” Initiative

Access Bank unveiled the “W” initiative to accelerate a new and stronger wave of hitherto scanty female entrepreneurs in Nigeria. In addition to financial inclusion, the “W” Initiative is a one-stop centre of all of Access Bank’s women empowerment offerings. Some of these include capacity building programmes exclusive to women, mentoring programmes, and maternal health services, all aimed at helping to build a bigger, stronger and more sustainable society.

“Under the initiative, participating women and their families have access to a wide range of opportunities. Part of these privileges includes access to loans and credit facilities; access to the ‘W’ community in which they can get insights concerning family matters and finance matters. In addition, ‘W’ community also provides women with access to information about several value-adding special offers for the home, including specially discounted offers as well as freebies on health, beauty and fitness.

“It also hosts Maternal Health Support Scheme(MHSS), through which Access Bank supports local and international treatments for fertility antenatal and postnatal treatment, and other specialist procedures such as hysterectomy (uterus removal), myomectomy (fibroid removal), dental, bariatric and orthopaedic treatments. The MHS Scheme can be availed to women within 48 hours. Since its inception, millions of naira has been spent on “W” and its component initiatives. Ever since launch, the Access Bank ‘W’ Initiative has positively impacted on the lives of many women”.

Corporate and Investment Banking

The Corporate and Investment Banking of the bank focuses on multinational, well-structured large local and foreign owned companies with minimum annual turnover of 20 billion and with risk rating falling within a specified limit, as well as financial institutions in the banking, capital markets, pensions and insurance sub-sectors. It includes the cement and construction, communications, manufacturing, upstream oil and gas, and financial institutions sectors, and selective focus in the downstream oil & gas, power, transportation, agriculture and real estate sectors. Besides, it offers clients a wide range of financial services including treasury (trading in fixed income and currency products), corporate finance, project finance and structured finance (acquisition and leveraged finance services).  This division is also responsible for the Group’s relationships with domestic and international financial institutions, including Development Finance Institutions (“DFIs”).

Awards

Some of the bank’s notable awards include the Outstanding Business Sustainability Achievement Award 2017; Karlsruhe Sustainable Finance Awards; Best Bank of The Year Award – Business Day Awards 2016; – Best Bank Academy – CIBN Awards; Euromoney Best Bank Transformation Award,2016; Karlsruhe Outstanding Business Sustainability Award, African Banking Awards 2016 ‘Best Bank in Nigeria’ – EMEA Finance, African Banking Awards 2016; ‘Corporate Social Responsibility’ (Pan-African) – EMEA Finance, African Banking Awards 2016  ‘CEO of the year’ (Pan-African) – EMEA Finance

The Access NollyFund

In 2016, Access Bank launched a N1 billion ‘Access NollyFund – a new and innovative financial service to improve and provide solutions for markets and communities where it operates. Identifying the Nigerian film industry as the third largest film industry in the world with annual revenue of $200 million which currently employs approximately 1 million people, Access Bank decided to develop and launch the fund which is primarily targeted at players within the industry that have the capacity to produce and distribute movies as well as meet other set eligibility criteria. It hosted all stakeholders of the industry to a Power Breakfast, where key players in the industry made presentations on how best to move Nollywood forward before the Access NollyFund was unveiled.

The Access Lagos Marathon

In 2016, the Bank partnered with the Lagos State Government to successfully host the maiden edition of the Access Bank Lagos City Marathon. This partnership was aimed at providing strategic support in the area of sports whilst promoting healthy and active living through fitness and exercise. It was the first ever full Marathon in Nigeria since 1985. The event which was approved by the Athletics Federation of Nigeria (AFN),endorsed by the International Association of Athletics (IAAF) and tagged “Running from the old to the new”, drew athletes from across the globe whilst showing the emergence of a modern city and multifaceted developments the state has witnessed since the last marathon over 30 years ago. The 2016 Access Bank Lagos City Marathon was ranked 2nd in Africa immediately after the Cape Town Marathon by the All-Athletics.com. The marathon also emerged 71 amongst over 1000 international marathons rated globally. In a related development, the 2016 UNICEF Charity Shield Polo Tournament is one of the prominent initiatives, sponsored by Access Bank to drive development in the communities it serves as well as raise more awareness on the plight of vulnerable children and orphans especially the Internally Displaced Persons (IDPs) scattered across northern Nigeria.

For a better society

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