Wednesday, May 22, 2024

Access Bank penetrates market with healthy depository balance 

Access Bank Botswana has gotten awash with cash realised during the two quarters ending June this year as it seeks to reposition itself in the market.

The bank has said its capital expenditure was up at P 272.4 million to 30 June 2023 against P 230 million in the corresponding period in 2022.

It said it invested money in a number of projects such as, Access Closa agency banking, ATMs rollout, N’stakolole partnership with Orange mobile network and improvements to its mobile banking platform.

“Although there may be temporary impact on our financial performance during this period, we want to underscore the vital importance of the strategic investments,” the bank said in its financial report.

“The bank’s capital expenditure demonstrates their commitment to investments that can potentially support future growth,” Kgori Capital told Sunday Standard online.

The new developments, among other things will see Access Bank through Access Closa agency banking having to compete head-to-head with the like of First National Bank’s Cash Plus and other fintech companies such as Orange money and Mascom’s MyZaka.

Access has since opened 1000 agencies sprawled across the country in a move that is aimed at bringing banking services closer customers.

“With the Bank having made significant investments in new products and channels, our focus is on growing customer base and increasing transactional volumes, particularly in the retail segment,” Access said.

Earlier this year, Botswana Stock Exchange (BSE) approved Access Bank P 2 billion bond note programme aimed at strengthening its war-chest.

“They announced an ambitious growth targets. Our understanding is that the proceeds of any bond under the above programme shall be used to fund that intended growth,” Allan Gray said then.

In October 2021, the Nigerian headquartered Access Holding PLC bought 78.1 percent in the then BancABC – baptised it and renamed it Access Bank Botswana. The deal also involved taking the insurance outfit Kaleu (PTY) Ltd which currently is trading as Access Insurance agency.


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