The stake of banker Herbert Wigwe in Nigeria’s largest lender, Access Bank Plc, has increased by $4.05 million (N1.67 billion) in 43 days.
An uptick in the bank’s share price on the Nigerian Stock Exchange (NSX) steered the increase in his stake’s market value. The uptick was triggered by investors riding on the news of a major recent acquisition by the bank in South Africa and its impressive financial performance for Q1 2021.
These strong fundamentals resulted in a bullish bias that sent shares soaring by 15.07 percent in 43 days, despite profit-taking activities by investors on the local bourse.
Investors react to 30-percent growth in profit for Q1 2021
Access Bank recorded a six-percent improvement in gross earnings to $538.44 million (N222.1 billion) in Q1 2021, while profit before tax grew by 30-percent to $145.71 million (N60.1 billion) on the strength of a 30-percent increase in its net interest income.
This impressive performance was led by the bank effectively implementing its cost optimization strategy, as operating expenses remained flat during the quarter despite inflationary pressures from its operating environment and increased regulatory costs.
The strong financial performance, coupled with a swing of optimism around the bank’s recent acquisition of South Africa’s Grobank and its expansion outside of the country, has seen the bank’s shares rise, returning impressive gains for shareholders.
Access Bank’s share price has increased from $0.017 (N7.30) on May 4 to $0.020 (N8.40) at the opening of the market this morning, June 16.
Herbert Wigwe’s stake gains $4.05 million (N1.67 billion) in 43 days
Wigwe, the bank’s group managing director and CEO, is a substantial shareholder in Access Bank.
Access Bank is Nigeria’s largest bank in terms of assets.
Wigwe holds 1,517,850,729 ordinary shares in the bank directly and indirectly through United Alliance Company of Nigeria Limited, Trust and Capital Limited and Coronation Trustees Tengen Mauritius.
The market value of Wigwe’s stake increased from $26.86 million (N11.08 billion) at the opening of the market on May 4 to $30.91 million (N12.75 billion) at the opening of the market this morning, June 16.
This translates to a gain of $4.05 million (N1.67 billion) for the executive in 43 days.
Access Bank officially launches South Africa division
Access Bank has officially launched its South Africa division after acquiring Grobank in March and renaming the financial institution Access Bank South Africa Limited.
Wigwe explained that its presence outside Nigeria cements the bank’s commitment to Sub-Saharan Africa as a portal for providing exceptional banking opportunities on the continent.
Access Bank South Africa CEO Bennie van Rooy said Access Bank South Africa looks forward to contributing to the group’s achievements and ambitions through its operations in Africa’s most industrialized country.