Access bank to acquire Kenyan bank, records 70.98% rise in net interest income

Coming after seven months of merging with diamond bank, the largest bank in Africa by customer-size, Access bank is set to acquire Kenya ‘s Transnational Bank Limited.

Expanding its Nigerian lender’s footprint across Africa, Access Bank has received the go-ahead to acquire Transnational Bank Limited after confirmation from Competition Authority of Kenya.

The acquisition will see Access Bank takeover 93.57per cent of Transnational Bank Limited.

With this move by Access Bank, it now has operation in Kenya like its Nigerian competitors, Guaranty Trust Bank Ltd and United Bank of Africa Plc.

The acquisition of Kenya’s Transnational Bank Limited by Access Bank follows a series of mergers in the East African nation’s banking industry. The country has recorded merger between NIC Group Plc and Commercial Bank of Africa Limited, and KCB Group Limited’s acquisition of National Bank of Kenya Limited.

Transnational Bank only lends to the agricultural sector. However, its non-performing loans increased by 58per cent to 1.85 billion shillings, while loans rose 0.5per cent to 6.63 billion shillings, according to a report. Also, in 2018, Transnational Bank recorded a full-year pretax loss of 98.5 million shillings ($951,690).

In its unaudited unaudited financial report for the period ended September 30, 2019, Access bank has generated N210.21 billion in net interest income.

ALSO READ: MTN, Banks CEOs reach compromise over USSD end user billing

This represents a 70.98% increase compared to the nine months period of 2018 when the lender recorded N122.94 billion.

The bank recorded N103.10 billion as profit before tax, up from N70.26 billion recorded as at the end of the third quarter of September 2018. This represents an increase of 46.74%.

While in its profit after tax, the lender recorded a profit of N90.73 billion for the nine-month period of 2019, compared to N62.91 billion recorded at the end of the nine months period for 2018. This represents a 42.22% increase in profit.

Also, the bank reported N2.18 as earnings per share as at the end of the third quarter of 2018 compared to N2.79 as at the end of the third quarter of 2019.