Access Bank has promised to continue to strengthen customers’ relationships even as Fitch Ratings has affirmed the bank’s long-term Issuer Default Rating (IDR) at ‘B-’ with a Positive Outlook with Fitch expecting the bank’s capitalisation to improve with its planned N365 billion rights issue.
The bank had earlier held interaction sessions with customers in Benin, Enugu and Owerri, the Imo State capital in enhancing its relationship and services to them.
Speaking to newsmen, deputy managing director of Access Bank, Chizoma Okoli said, the event was part of the bank’s efforts at appreciating their customers, strengthening the existing relationship between them as well as generating feedback that would help the bank to serve its numerous customers satisfactorily.
Okoli, who was full of gratitude to the bank customers for their steadfastness and confidence, disclosed that, Access Bank serves over 60 million customers with 600 branches, and will continue in-line with its cherished values to provide the best of financial services and innovations that guarantee customers’ exciting experiences and economic growth.
She urged the participants to always leverage various products of the bank.
Also speaking, the Group head, Consumer Banking, Mrs. Njideka Esemoju averred, “the essence of the event is to know our customers better, to appreciate them, and to celebrate them. It is also an opportunity for us to find out their pinpoints in order to address them, because we aim at customer satisfaction.”
She added that the bank would work hard to enhance its processes through feedback generated from the event.
Emphasising on Access, head, Channels, Access Bank, Mr. Oluremi Tinuolu-Gabriel urged customers to embrace the Access application as it offers over 70 financial and payment solutions within and outside the country.
He assured of the bank’s determination at securing customers transactions, while advising customers against disclosing their sensitive bank information in order to safeguard their accounts.
Meanwhile, some of the customers reacted to the event, appreciating Access Bank for its activities and support towards their customers through various products, including Access Finance among others.
The highpoint of the event which drew large participants was the introduction of some products of the bank like Access Hydrogen POS; Access Pensions and Switch to Solar equipment to curb carbon emissions among others.
Meanwhile, aside affirming the bank’s Long-Term Issuer Default Rating (IDR), Fitch Ratings equally affirmed the bank’s National Long-Term Rating at ‘A+(nga)’ with a Stable Outlook.
According to Fitch, Access Bank’s IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR). The VR reflects the bank’s high sovereign exposure relative to capital and the concentration of its operations in Nigeria. Access Bank’s National Long-Term Rating balances its leading franchise against weaker core capitalisation and profitability than higher-rated peers.
Commenting on the challenging environment the bank operates in, Fitch said: “President Tinubu has pursued key reforms since he assumed office in May 2023, reducing the fuel subsidy and overhauling monetary policy, including allowing the naira to devalue by over 65 per cent. The reforms are positive for Nigeria’s creditworthiness but pose near-term macroeconomic challenges for the banking sector.
“Access Bank is Nigeria’s largest banking group, accounting for 17 per cent of banking system assets at end-2023. Access Bank has acquired several small banks in other Sub-Saharan Africa countries in recent years, in line with its African expansion strategy.
“Fitch expects acquisitions to continue, strengthening Access Bank’s franchise and geographical diversification. Access Bank has a record of integrating domestic acquisitions, but the large number of cross-border acquisitions creates execution risks and may pressure financial metrics.”
On its sovereign exposure, it said, “single-obligor credit concentration is moderate, with the 20 largest loans representing 124 per cent of Fitch Core Capital (FCC) at end-1Q24. Oil and gas exposure (end-2023: 18 per cent of gross loans) is material but lower than at other domestic systemically important banks (D-SIBs). Nigeria sovereign exposure through securities and Central Bank of Nigeria cash reserves is very high relative to FCC (end-2023: 493 per cent).
“Access Bank’s impaired loans (Stage 3 loans under IFRS 9) ratio declined to 3.1 per cent at end-2023 (end-2022: 3.4 per cent). Stage 2 loans also declined to 7.5 per cent of gross loans at end-2023 (end-2022: 8.3 per cent). Specific loan loss allowance coverage of impaired loans (end-2023: 31 per cent) is low due to a reliance on collateral. Fitch forecasts the impaired loans ratio will increase moderately in the near term.”
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