Following the release of ACCESSCORP’s FY’23 and Q1’24 numbers, we now expect earnings to increase by c.2.0% from the FY’23 print. Our confident expectation (given the FY’23 high base) hinges on the view that core banking income (interest funding income) will drive the momentum in earnings. While we expect non-interest revenue to decline in the current financial year, the impact of elevated interest income should mask its pass-through to FY’24E earnings.
As we advance into the bank’s strategic cycle, management has highlighted its target to transition from an investment to a consolidation phase. This position highlights the bank’s progress at improving earnings contributions from the nascent acquisitions and driving the group’s profitability.
Things to expect in the next phase of ACCESSCORP’s strategy
- ACCESSCORP’s current strategy highlights its intention to become Africa’s gateway to the world, which is anchored on its plan to position as the preferred trade financier and payment facilitator. To this point, ACCESSCORP has undergone strategic acquisitions over the last 16 years across the African continent. However, management has noted the probability of closing out on this phase by Q4’24. Following the end of these acquisitions, the focus will then shift to consolidation aimed at improving market position and boosting returns.
- ACCESSCORP aims to grow its customer base to 125 million ( 100 million in Nigeria) by 2027 (2023: c.60 million), with a view to registering at least a daily transaction from 40% of this targeted customer base by 2027.
- Therefore, to accommodate this expected growth, ACCESSCORP will use a robust digital platform and self-service channels to improve user experience and continue to roll out cost-effective branches in strategic locations.
