The Bidvest Group has officially classified Bidvest Bank as a discontinued operation in its latest financial results as it prepares for its sale to Nigeria’s Access Bank.
According to Bulawayo24.com, in its financial report for the six months ending December 31, 2024, Bidvest revealed that its Financial Services segment had been dismantled, and a formal process was initiated to sell both Bidvest Bank and FinGlobal.
This marks the first financial report where these operations have been excluded, highlighting the impact of the sale on the group’s overall performance.
Bidvest Bank, a full-service financial institution offering foreign exchange, fleet, business, and personal banking solutions, is set to be acquired by Access Bank for R2.8 billion. FinGlobal, which primarily provides emigration services, is also being sold in a separate transaction. The group’s remaining short-term insurance businesses have been transferred to the Automotive segment.
Access Bank Expands Its Footprint in South Africa
In December 2024, Access Bank, Nigeria’s largest lender by assets, signed an agreement to acquire 100% of Bidvest Bank’s share capital. With over 60 million customers worldwide and a network of more than 700 branches across 23 countries on three continents, Access Bank’s acquisition is expected to bolster its presence in South Africa.
Pending regulatory approvals, the deal is anticipated to be finalized in the second half of 2025. Upon completion, Bidvest Bank will be merged with Access Bank’s existing South African subsidiary, further strengthening the Nigerian bank’s operations in the region.
Meanwhile, Momentum Strategic Investments has agreed to acquire 100% of FinGlobal’s share capital. The Bidvest Group has also received binding offers from life insurers for the sale of Bidvest Life.
“We are pleased with the respective signed offers that make both financial and strategic sense while ensuring continued employment for our staff,” Bidvest stated.
Financial Impact and Group Performance
Bidvest classified Bidvest Bank, FinGlobal, and Bidvest Life as discontinued operations in line with IFRS 5 accounting standards. This means these businesses were reported separately from the group’s continuing operations on its income statement.
Despite challenges in bulk commodity movements and renewable energy products, Bidvest’s overall performance remained stable. The group’s revenue grew by 5.7% to R64.5 billion, although the overall gross profit margin declined slightly to 27.6% due to a shift in divisional mix.
Four of the group’s six divisions recorded trading profit growth, while its Freight and Commercial Products divisions faced setbacks. The Freight segment struggled due to a lack of maize export volumes and a decline in renewable energy sales, while Adcock Ingram’s performance was impacted by weak consumer spending, lower inventory levels, and factory inefficiencies.
Bidvest reported a 5.8% increase in basic earnings per share (EPS), rising from 960.8 cents to 1,016.1 cents. This growth was partly driven by the suspension of depreciation and amortization costs for discontinued operations, along with strong trading profits across the three entities being sold.
Headline earnings per share (HEPS) increased by 2.8% to 1,015.5 cents, while the company slightly raised its interim dividend by 1% to 470 cents per share, reaffirming its commitment to shareholder returns.
Strategic Growth Amidst Transitions
Bidvest emphasized that its businesses continue to generate strong and consistent profits, benefiting from demand for essential products and services across various sectors of the economy. New business growth, increased tank capacity, and acquisitions helped mitigate the effects of price-sensitive customers and weaker discretionary consumer spending.
As Access Bank prepares to finalize its acquisition of Bidvest Bank, this deal marks a significant step in strengthening economic ties between Nigeria and South Africa. It also underscores the growing influence of Nigerian financial institutions in the global banking landscape.
Source: Bulawayo24News
