Access bank shareholders ratify N100bn capital, 30kobo per share dividend

By CHIOMA OBINAGWAM

SHAREHOLDERS of Nigeria’s lender, Access Bank Plc. have unanimously given the bank authorization to raise a N100 billion additional capital as well as the payment of a 30 kobo final dividend.

The approval was given at the lender’s 27th Annual General Meeting (AGM) held in Lagos, recently. The bank’s Group Managing Director (GMD), Herbert Wigwe said the additional capital sought for, would enable the bank strengthen its capital position to take advantage of opportunities that present itself amidst the current economic storm, in addition to investing for long-term growth.

He noted that the bank had a successful outing in 2015 which yielded a Tier1 capital injection of N41.7 billion with a capital adequacy ratio (CAR) of 20 per cent. “The offer was successfully concluded in August 2015, and yielded a Tier 1 capital injection of N41.7 billion. Owing to your continued show of confidence in our future growth prospects,” he said.

“I am happy to report that we are one of the most capitalised banks in the industry with a capital adequacy ratio of 20 per cent, well above regulatory minimum of 16 per cent,” he continued.

Although shareholders unanimously okayed raising additional capital, Boniface Okezie, the president, Progressive Shareholders Association of Nigeria (PSAN), suggested that the new funds should be raised through bonds to avoid over bloating the bank’s share capital.
Mr. Okezie noted that the bank should not consider rights issue or public offerings as the bank had floated a rights issue in 2015.

Reacting, wigwe said that the bank has a disciplined capital plan and that the additional capital could be a combination of debt and equity. “We will continue to take proactive steps to ensure that we optimise our capital structure, in terms of both debt and equity, to maintain a robust balance sheet even in difficult times,” Wigwe said.

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In terms of dividend payout, the Chairman of the bank, Mosun Belo-Olusoga said that the 30 kobo per ordinary share payable to shareholders on the register as at April 12, 2016 is in addition to the interim dividend of 25 kobo per ordinary shares which was paid in September 2015, bringing the total dividend paid in respect of its 2015 financial year to 55 kobo per share.

The chairman also noted that over the years, the group had consistently delivered on its target dividend payout ratio of 33 per cent to 35 per cent and that 2015 was not an exception.

She added that the Group posted another year of strong earnings in 2015, as revenues grew by 38 per cent to N337 billion for the year from N245 billion in 2014. Profits also rose to N75 billion in 2015 from N52 billion in 2014.

Looking into the future, the CEO of the bank noted that the bank would place greater emphasis on expanding its retail business, improving cost discipline, proactively managing risk and strictly adhering to policies guiding its businesses.