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Access Bank UK, the subsidiary of Nigeria’s Access Bank Group which operates in 22 countries, has expanded into Malta through a fully-owned establishment. The bank’s licence application was approved on Tuesday by both the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).

This is Access Bank UK’s third market expansion in the last two months, following Hong Kong and Mauritius, but only its second presence in Europe. In November, the UK bank acquired majority shares in Afrasia Bank, the fourth-largest bank in Mauritius with $5.7 billion in total assets. 

Access Bank UK holds a commercial banking licence but focuses on providing corporate, commercial, and private banking services. Its operations focus on trade finance, business banking, treasury services, and private wealth management, catering to individuals involved in international trade, especially between Africa and the UK.

While it does not operate a high-street retail bank like other UK-based commercial banks—like Barclays and HSBC—it plays a role in facilitating cross-border banking.

This is why the expansion into Malta makes sense. Access Bank wants to be a corporate banking service provider for Maltese companies that are investing in Africa. Access Bank has an advantage with its large presence in multiple African markets like Kenya, Ghana, and Rwanda—all countries where Maltese businesses are setting their sights on.

With its recent acquisition of Standard Chartered subsidiaries in Sierra Leone and Angola in November, Access Bank, the M&A machine, is growing its deep-rooted influence in Africa to facilitate trade between Europe and Africa. With this plan, Access Bank’s next target will likely be in North Africa, as it moves further to bridge the trade finance gap between both continents.

It could also be another option for Access Bank to diversify its earnings beyond the volatile operating markets in Africa.

Nigeria’s biggest banks have earned record profits this year thanks to FX gains from the naira devaluation and net interest income from the Central Bank’s continuous interest rates hikes.

Since the year began Nigeria’s central bank has raised interest rates six consecutive times, with the latest hike pushing interest rates to 27.5%. The country’s four largest banks all reported that net interest income had more than doubled as a result of those hikes. Guaranty Trust Holding Co., Nigeria’s biggest bank by market value, for instance posted its biggest first-half profit as income from loans soared on the back of record interest rates. GTBank and other Nigerian banks have also reported record profits bolstered by FX gains. 

So it’s no surprise they’re paying huge dividends to shareholders. Yesterday, Nairametrics reported that Nigeria’s five biggest banks—Guaranty Trust Holding Co., Access Bank Group, Zenith Bank Plc, United Bank for Africa Plc, and FBN Holdings Plc—paid dividends of ₦145.221 billion ($92 million) to its shareholders in the first half of the year. Those banks paid a combined amount of ₦58.177 billion ($37 million) in the same period last year. A retail investor who bought 1,000 shares of GTCO at the beginning of the year for ₦40.50 ($0.026) per share would have seen their investment grow to ₦53,200 ($34) by December 6, representing a 31.4% return. 

Pension funds, insurance companies, and other institutional investors that hold significant deposits in these banks were the biggest winners. 

The higher dividend payouts have attracted more investors to these Nigerian banks’ stocks. As of December 6, 2024, their combined market capitalisation stood at ₦5.9 trillion ($3.76 billion).