AfrAsia Bank to Continue Operating Under Its Current Brand

 

Supported by the strength of an international banking group based in the UK, AfrAsia is entering a new phase of its history. Following its acquisition by Access Bank UK, the bank is doing more than just changing ownership. It's embarking on a strategic expansion into high-growth markets and strengthening investment and trade flows between Africa, Asia, and international markets.

Business Magazine met with Jamie Simmonds, CEO of Access Bank UK, and Thierry Vallet, CEO of AfrAsia Bank. Together, they discussed the strategic motivations for the acquisition, the expected synergies, and the new development opportunities it presents for AfrAsia Bank.

 

• The acquisition of AfrAsia by Access Bank UK Ltd marks a new step in the group's growth strategy. What are the macroeconomic, geographical and sectoral considerations that motivated this choice?

 

Jamie Simmonds:  Established as a wholly owned subsidiary of Access Plc in 2008, The Access Bank UK Ltd is responsible for the international expansion of the Group outside of Africa. Over the past years, we have sought out strategically important locations in which to develop the Bank and expand our footprint. With the UK covering Sub-Saharan Africa – these include Dubai which gives us access and a gateway into the MENA Region, Paris provides us with access to Francophone African countries, while Hong Kong grants us access to a trade corridor into China and more broadly Asia, and lastly, we have Malta which provides us with coverage across Europe together with North Africa.      

 

We were therefore looking to ensure we could develop Trade Finance across Southern Africa, and Mauritius, with its mature financial services and legal systems, was our primary target location.  When the AfrAsia Bank opportunity presented itself, the values and cultural fit made it an ideal opportunity for us to take the discussions forward and proceed to completion with the purchase of a controlling interest in the Bank.

 

We see this as a key enabler of our broader strategy to build a Global banking group that is not only commercially successful, but also aligned with international best practices, as well as the evolving expectations of regulators, stakeholders and the communities that we serve.

 

 

• How does Mauritius fit into your ambition to build a pan-African financial hub with an international vocation? What regional role is it expected to play in the Access Bank network?

 

Jamie Simmonds: AfrAsia Bank provides us with excellent access to Southern Africa which in turn complements our existing international coverage – providing our customers with an international network and access to business support and opportunities.

 

 

 

• IBL retains a minority stake of 7.89% in the bank's capital. What role will this historical shareholder play in the new governance? Is his presence on the board of directors maintained?

 

Thierry Vallet & Jamie Simmonds :We are pleased that the negotiations with IBL have been constructive throughout the sales process and this has culminated with them wishing to retain a stake in the Bank they were instrumental in creating. Their role will be passive with no seat on the Board or involvement in the governance of the Bank. We do however look forward to a constructive relationship with them as a valued customer of the Bank.

 

 

• The Access Bank UK Ltd now owns 76% of AfrAsia's capital, giving it majority control. What guarantees can you provide for maintaining a local decision-making anchor – particularly in terms of compliance, strategic orientation and customer management?

 

Jamie Simmonds : Both The Access Bank UK Limited and AfrAsia share an unwavering  commitment to sound governance, regulatory compliance, and sustainable growth. We are committed to building a strong collaboration that is not only commercially successful, but also aligned with international best practices and the evolving expectations of our regulators. Having taken the time to build strong relationships with our regulators, we      aim at all times to perform above the standards required of us. The heart and mind of the operation will continue to be in Mauritius with decision making taking place strictly through the newly constituted Board.

 

 

• In a banking context where margins are under pressure and technological innovation is redefining models, how does this acquisition constitute a lever for value creation? What concrete synergies do you anticipate on the commercial, technological and prudential aspects?

 

Jamie Simmonds :This transaction brings together two strong Banks with complimentary offerings as well as other services that are add-ons to both. During the due diligence process, we were assured that the combination will add significant value. This will be captured, and measurable deliveries will be agreed before the year end to ensure that we can then execute our objectives on a clear basis. 

 

 

• You mentioned your ability to support AfrAsia's growth. How will this be reflected in the bank's accounts? Are there already plans to increase equity or invest in new products?

Jamie Simmonds : We will be looking at the products and services that we offer across the board to ascertain synergies or potential opportunities for new products and/or markets. 

As such, we will be combining knowledge and expertise in the enhancement and development of these products and services to ensure that our customers can access a broad and geographically spread product suite and service offering.

Given that this is the first priority, any decisions concerning equity will naturally flow from that.           

 

 

• AfrAsia is recognized for its focused positioning on private banking, wealth management and cross-border flows. Will this positioning be maintained, or will it evolve as part of the integration within the Access group?

 

Thierry Vallet: With the combined expertise of AfrAsia Bank and The Access Bank UK Limited in Private Banking and Wealth Management, this complementarity will strengthen our value proposition, accelerate our growth, and deliver greater benefits to clients worldwide.

At a broader level, we remain committed to pushing the boundaries of customer service excellence, while building on the strong foundations of all our business lines — private banking, wealth management and investment solutions, global business, corporate banking, and treasury & markets, through which we have consistently created significant value for clients in more than 170 countries across continents.

 

 

• Access Bank's roots in several African jurisdictions, which are exposed to geopolitical risks, raises some reservations. How do you address concerns related to reputational risk or potential impacts on the perceived strength of the group in Mauritius, and perhaps also in the region?

 

Jamie Simmonds: This transaction brings a UK regulated Bank as a significant investor into the financial services industry in Mauritius as part of a Pan-African Banking Group. With regard to reputational risk, we adhere to the highest of standards no matter the country of operations.    

 

 

• Experience shows that the success of an acquisition depends on the management of cultural integration. How do you plan to preserve AfrAsia's DNA while integrating Access Bank Group's performance, governance and compliance standards?

 

Jamie Simmonds: Both The Access Bank UK Ltd and AfrAsia have many shared values and beliefs, and this is one of the reasons why this transaction is a strong fit. We will be working together to ensure effective communication throughout so that everyone understands the vision and values and the roles that they will play going forward. 

In my view, the key is consistent communication – painting the picture of the end goal, showing how each individual contributes to it, and ensuring their efforts are recognised and rewarded.

We will work very closely with the AfrAsia team to build a strong and collaborative relationship – one where we are all aligned and moving in the same direction for the benefit of our customers, shareholders and other stakeholders. 

We have a shared commitment to sound governance and regulatory compliance and believe that banking must be sustainable.  To this end, we will be sharing knowledge within the group to develop and build on best practices. This drives our unwavering commitment to international best practices in order to exceed      the evolving expectations of the international regulators.

 

 

• What concrete actions do you envisage to ensure a smooth transition – in terms of human resources, operational processes and technologies – while preserving the agility of the local structure?

 

Jamie Simmonds: As mentioned earlier, the concrete actions we will take include clear communication across the Bank regarding shared vision and values, and the role that everyone has to play in the new entity. 

 

We will be sharing knowledge and experience, whilst exploring new opportunities across both organisations – in terms of products, services and marketplaces - to ensure that our customers gain maximum benefit from the new combined organisation.

 

 

• With offices in London, Dubai, Paris, Hong Kong, Malta and Lagos, Access Bank UK has a strong international footprint. How will this network be mobilized to accelerate AfrAsia's development? Could Mauritius become a regional centre of competence or steering?

 

Jamie Simmonds: We are responsible for the international expansion of the Group outside of Africa.  We will leverage our network for the benefit of AfrAsia customers. The Access Bank UK Ltd provides coverage in respect of Sub-Saharan Africa, Dubai gives us access and a gateway into the MENA Region, Paris provides access to Francophone African countries, Hong Kong provides a trade corridor into China and more broadly Asia and Malta provides coverage across Europe together with North Africa.  We will work with AfrAsia to leverage these marketplaces for the existing and new customers in Mauritius, providing them with access to an international network of support and expertise to help them to expand into new markets and acquire opportunities for their businesses. With this acquisition, The Access Bank UK Ltd is now able to strengthen investment and trade flows between Africa, Asia and international markets, especially with Mauritius acting as a strategic hub.

 

 

• Now that the transaction has now been finalised, what message do you have for customers, partners, investors and authorities? Is this acquisition a goal or the starting point of a broader growth strategy in Mauritius and the region?

 

Thierry Vallet & Jamie Simmonds :AfrAsia is now part of a strong International Banking Group anchored in the UK. We see the opportunity for incremental change to the benefit of our customers, staff and other key stakeholders.

 

 

• Finally, are you planning a name change or a complete rebranding operation in the near future? Or do you prefer to maintain the current identity of AfrAsia, which already enjoys a significant amount of trust in Mauritius and in regional financial circles?

 

Jamie Simmonds: As you have mentioned above, AfrAsia has a strong brand name and has built a significant amount of trust and brand awareness in the Mauritius financial marketplace.

 

We aim to continue to grow that trust and enhance the breadth and depth of market reach and product offerings for the benefit of our customers. 

 

As a result of that, AfrAsia will continue to operate under its current brand. The Bank remains fully committed to providing best in class banking solutions to both local and international customers.