UPDATE 2-Nigeria's Access Bank takes controlling stake in South Africa's Grobank

* Access eyes trade deals with Grobank acquisition
* Nigerian lenders seeking new profit sources
* South African banking sector dominated by 4 players

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By Chijioke Ohuocha
ABUJA, March 30 (Reuters) - Nigeria's biggest lender Access
Bank ACCESS.LG has bought a controlling stake in South
Africa's Grobank for around $60 million and will shore up the
bank's capital, its chief executive said on Tuesday, becoming
the first Nigerian lender to venture into South Africa.
Access took on both equity and debt in the South African
bank, part of a regional expansion to tap into correspondent and
trade banking deals on the continent, Herbert Wigwe told CNBC
Africa Television. He did not disclose the exact stake size.
Nigerian lenders have been seeking new avenues to boost
profit amid slow economic growth at home, a drop in government
bond yields and a rise in restructured loans due to the impact
of the coronavirus pandemic.
Access Bank is expanding across the continent to counter
stagflation at home and dollar shortages that have frustrated
businesses. The latest deal brings its African presence to nine
countries.
"We have a full retail banking licence in South Africa,"
Wigwe said. "We will pursue a wholesale banking franchise. We
will pursue trade finance," he said, adding that Grobank is
focused on the agribusiness and foods sector in South Africa.
South Africa's banking sector is dominated by four top
lenders that vie to grow profits in an economy that has been
weakened further by the COVID-19 pandemic and seen rising
impairments for bad loans.
Wigwe acknowledged the competitive landscape in South Africa
but said he saw opportunities to connect the region, especially
with the launch of the Africa free-trade area this year, and
provide banking services to customers across the continent.
Access, with more than $16 billion of assets and a focus on
corporate and retail banking, is restructuring its Nigerian
business into a holding company. Wigwe said the lender will
support Grobank with more capital, but did not give details.
In August, Access Bank agreed to buy Zambia's loss-making
Cavmont Bank CCHZ.LZ and in January last year it acquired
Kenya's Transnational Bank KCB.NR with the aim of pursuing
more acquisitions on the continent. = 14.9356 rand)