Tier one lender Access Bank Plc yesterday held a conference callĀ to update analysts and investors on progress with its merger and other sundry issues. Here are highlights of the call.
Revised time table of the mergerĀ Ā
The Access Bank CEO provided a revised time table of the merger. Court ordered meetings are expected to hold in March. Access Bank has scheduled its court-ordered meeting for the 5th of March, 2019.
The expected time of completion of all necessary processes is April 2019. This is however subject to shareholder and regulatory approval.
EquityĀ raiseĀ shelvedĀ
A N75 billion rights issue announced by the bankĀ this year has been shelved.
Group Managing Director of the bank HerbertĀ Wigwe, said the bank took the decision because the bank had a clearer understanding of the capital strength required. It will, however, drawdown on US$250 million of 5-year tier II capital in Q1 2019.
Estimated synergiesĀ
WigweĀ also stated that the bank estimates N150 billion in cost synergies will be created over the next three years. On the cost side,Ā synergiesĀ would amount to N88.1Ā billion, while on the revenue side synergies would amount to N62.2 billion.
57 Ā branchesĀ to goĀ Ā
WigweĀ also stated that the bank would shut down 57 branchesĀ over the next two years.Ā There would however be no staff redundancy, as affected staff would be retrained. The affected branches were arrived at after deep customer analytics.
To seekĀ forbearance from CBNĀ
WigweĀ also confirmed that the bank willĀ seekĀ forbearance from the Central Bank of NigeriaĀ pertainingĀ to writing off loans.
Clarity on subsidy backed loansĀ
In response to a question by OlaĀ Warikoru an analyst with SBG Securities pertainingĀ to the banks waiving off interest on subsidy-related loans,Ā WigweĀ clarified the actual request made by the CBN.
The apex bank asked banks to waive the interest for one year on subsidy backed loans.
Further 9Mobile provisions unlikelyĀ Ā
In response to a question fromĀ GloriĀ FadipeĀ of CSL Stockbrokers,Ā WigweĀ stated that the need for provisionsĀ pertainingĀ to loans granted to 9Mobile was highly unlikely. The bank he noted, had made the highest provisions with respect to the loans granted the telco.
Ā No form of integration has taken placeĀ
VictorĀ Etuokwu, the Access Bank lead for the integration process stated that no cross-functionalĀ activityĀ had taken place. TheĀ interoperabilityĀ of ATM cards across both branches was something that could be pursued by any bank.
Access Bank is a tier 1lender and not tier 2 as mentioned in your write up
Thank you for the observation. It has been corrected.