Access Holdings, Three Other Banks’ Subsidiaries in UK Contribute 6.8% to PBT in H1 2024
CHIGOZIE AMADI
A total of four Nigerian banks with subsidiaries in the United Kingdom (UK) contributed about 6.8 per cent of the overall N2.48 trillion profit before tax (PBT) generated in the half year ended June 30, 2024.
The four banks are UBA UK, The Access Bank UK, GTBank UK, and Zenith Bank UK.
Extracts from the audited H1 2024 result and accounts showed that the combined four Tier-1 banks UK subsidiaries generated N168.04 billion PBT in H1 2024, about 179 per cent increase over N60.17 billion reported in H1 2023.
In the first H1 of 2024, the UK economy demonstrated a mixed but generally improving trajectory as Gross Domestic Product (GDP) grew modestly, with a forecast annual growth of 1.1 per cent for 2024.
Inflation eased significantly, averaging 2.5 per cent in 2024, largely due to declining energy and food prices.
However, core inflation (excluding volatile energy and food prices) remained more persistent, reflecting ongoing pressures in services and other sectors.
In addition, The Bank of England held interest rates steady at 5.25 per cent in the first half of the year as against Nigeria at 26.25 per cent where these banks generated huge profits with interest rates as of the first half of 2024.
From the audited H1 2024 results and accounts, THISDAY gathered that Access Bank UK generated the highest profit, followed by Zenith Bank UK.
As Access Holdings generated N348.9 billion PBT in H1 2024 from N167.6 billion in H1 2023, its UK subsidiary declared N111.2 billion PBT in H1 2024 from N31.9 billion reported in H1 2023.
Access Bank UK ranked second behind Access Bank Nigeria in terms of profit generation for the group.
Access Bank Nigeria, in the period under review, generated N170.91 billion PBT in H1 2024 up from N113.93 billion in H1 2023.
Access Bank UK has been pivotal in promoting Nigeria-UK economic ties, leveraging its parent company’s strong presence in Africa. Its strategic location in London enables it to act as a bridge for investors and companies exploring opportunities in Africa and Europe.
This focus on innovation and customer-centric solutions has made Access Bank UK a key player in the African banking diaspora in the UK.
The Pan-African financial institution in a presentation stated that “The strategic expansion into higher-rated geographies continues to yield positive results, driving organic growth and sustained earnings.
“This growth is attributed to the scale built into the business and the cumulative impact of favourable currency conversions on the balance sheet, providing a natural hedge against foreign exchange volatility.
“Additionally, diversifying operations across different markets has mitigated risks associated with single country exposure, enhancing its resilience and ability to withstand economic shocks. This approach has contributed to a more balanced and robust financial performance, strengthening the group’s overall profitability and long-term sustainability.”
Access Bank recently expanded its presence in South Africa by reaching an agreement to acquire 100 per cent of Bidvest Bank, a South African financial institution focused on corporate, business, and retail banking.
The acquisition, according to the report, is valued at $159 million and is part of Access Bank’s broader strategy to strengthen its footprint across Africa and establish itself as a key player in the Southern African Development Community (SADC) region.
In the period under review, Zenith Bank UK reported N38.72 billion PBT in H1 2024, representing an increase of 101 per cent from the N19.23billion reported in H1 2023, followed by GTBank UK, which announced N10.98billion PBT in H1 2024, about a 127 per cent increase over the N4.83billion in H1 2023.
In addition, UBA UK Limited announced N7.2 billion PBT in H1 2024, up by 71.4 per cent from N4.2 billion reported in H1 2023.
UBA UK is a direct conduit for the Nigerian trade sector, supporting the growth in international trade by providing country-tailored solutions from an international hub with seamless trade finance services. This is evidenced by the continuous growth in trade transactions during the year 2023.
“UBA UK acts as a bridge, optimizing trade across Africa, the UK, Europe and the Middle East,” the UBA group explained in a presentation to investors and analysts.
