The Managing Director, Access Bank Plc, Herbert Wigwe, has called on investors to embrace the bank’s ongoing rights to ensure enhanced investment growth.
Wigwe made the appeal at the bank’s “Facts behind the Rights’’ on the Nigerian Stock Exchange (NSE) on Thursday in Lagos.
The managing director said that investors should not worry about the current market price of the bank, noting that distortion in the market dragged down the price.
He said: “We don’t manage share price but the fundamentals of the bank. We are going to give good returns on investment as our target is to be among the top three banks in 2017’’.
Wigwe said the bank was talking to institutional investors, high net worth investors and individuals, especially the investors who understand the value of long term investments.
According to him, shareholders have started taking their rights because they know that the crisis is going to be over.
The bank intends to raise N52.26 billion through a rights issue of 7.63 ordinary shares at the rate of N6.90 per share.
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The offer which opened on Jan. 26 will close on March 4.
He said that the proceeds would enable the bank to be more competitive and meet the funding needs of its blue chip customers that meet its credit risk criteria.
Wigwe said the proceeds from the offer would be used to upgrade its information technology platforms for better services.
He said that the proceeds would also be used for upgrading of the bank’s branch networks and improvement in working environment.
“The funds raised will provide Access Bank with additional capacity to further consolidate its leading corporate banking business and additional capital headroom to support our increasing market share in the SME and retail segments’’ Wigwe said.
The bank’s nine months ended Sept. 30, 2014 showed 17.3 per cent increase in gross earnings to N181.8 billion from N155 billion recorded in the corresponding period in 2013.
Also, its total assets rose to N2.07 trillion from N1.84 trillion declared in 2013, representing an increase of 13 per cent.
The bank’s tier-one profit for the period rose by 28 per cent to N35.4 billion, from N27.6 billion recorded in the corresponding period in 2013.
Its basic earnings per share increased by 28 per cent to N1.54k from N1.21.
The bank also reported net interest income growth of 27 per cent to N75.9 billion from N59.6 billion in the corresponding period in 2013. (NAN)