Access Bank UK bets on Africa
Bank eyes strong growth on continent through Dubai
The DIFC branch of Access Bank UK Limited, a wholly-owned subsidiary of Access Bank, a Nigerian Stock Exchange listed bank expects to see strong growth for business through Dubai operations this year.
Access Bank UK was established a decade ago to provide customers in the UK and Africa with a broad range of business and personal banking services ranging from trade finance, treasury services, business and personal banking together with private banking and wealth management.
The DIFC branch, regulated by Dubai Financial Services Authority (DFSA) is fast tapping into the trade finance business relations from the Middle East and Asia with the African continent, particularly Nigeria. The bank reported net profit of Dh3.4 million (£671,000) for its DIFC branch last year, as the bank as a whole reported growth in operating income by 45 per cent from £25 million (Dh126.4 million) to £36.2 million, and a surge in profit after tax by 80 per cent from £9.9 million to £17.8 million.
“We achieved this increase in earning operating within our moderate risk appetite while maintaining our strong relationship-based model,” said Jamie Simmonds, Chief Executive Officer and Managing Director of The Access Bank UK. While the bank’s operations in DIFC started with the strong global relationship based trade finance, the DIFC branch has been building regional client base who have trade relations with Africa.
With regard to the bank’s core trade finance markets in Africa, Nigeria will remain a significant market, where it will continue to have a key role to play in facilitating the flow of trade to and from Nigeria. The bank will also continue to leverage the brand recognition that it enjoys in its chosen markets to broaden its base of trade finance and commercial banking customers. Given the current signs of improvement in the situation in Nigeria, the bank is confident that the business outlook is a positive.
“From Dubai, we want to be a trade finance gateway to Africa, particularly Nigeria. The revival in the Nigerian economy driven by oil price recovery, strong potential for agricultural exports to the Middle East, infrastructure driven investment growth and consumption demand are expected to drive two-way trade volumes between the Middle East and Nigeria, lifting the scope for trade finance,” said Simmonds.
Easing of economic conditions in Nigeria is boosting trade volumes and scope for trade finance. Throughout 2017, the Central Bank of Nigeria continued to ease restrictions imposed regarding access to foreign currency and introduced the Investors and Exporters window for buying foreign currency, which resulted in the Access Bank witnessing a continued increase in trade finance volumes.