Business
Bidvest Bank Discontinued as Bidvest Group Finalizes Sale to Access Bank
Bidvest Bank has been officially classified as a discontinued operation by the Bidvest Group as the company prepares for its sale to Access Bank, Nigeria’s largest lender by assets. This move comes as part of Bidvest’s strategy to restructure its financial services division and streamline its operations.
Bidvest Bank’s Transition and Sale
In its latest financial results for the six months ending 31 December 2024, Bidvest Group announced that it has dismantled its Financial Services segment, with plans to dispose of Bidvest Bank and FinGlobal. The decision marks a major shift in the group’s operational focus.
Access Bank agreed to acquire 100% of Bidvest Bank’s share capital for R2.8 billion. The acquisition is expected to be completed in the second half of 2025, pending regulatory approvals. Once finalized, Bidvest Bank will be merged with Access Bank’s existing South African subsidiary, further strengthening the Nigerian bank’s footprint in South Africa.
FinGlobal, a key player in emigration services, was also sold in December 2024 to Momentum Strategic Investments, with Bidvest Group receiving additional offers for Bidvest Life’s assets.
Impact on Bidvest Group’s Financials
The removal of Bidvest Bank from its financials has already shown positive results. In the latest earnings report, Bidvest highlighted:
- Revenue growth of 5.7%, reaching R64.5 billion.
- Basic earnings per share (EPS) increasing by 5.8% to 1,016.1 cents.
- Headline earnings per share (HEPS) rising by 2.8% to 1,015.5 cents.
- A 1% increase in interim dividends to 470 cents per share.
Despite these gains, the company faced challenges, including poor performance from its pharmaceutical subsidiary, Adcock Ingram, and weaker consumer spending.
What This Means for South Africa’s Banking Sector
The acquisition of Bidvest Bank by Access Bank signals increased foreign interest in South Africa’s financial sector. With Access Bank already operating in 23 countries across three continents and serving 60 million customers globally, this acquisition could introduce more competitive banking services in the region.
Bidvest’s decision to streamline its operations also reflects broader trends in the banking sector, where companies are focusing on core competencies while offloading non-essential units.
The sale of Bidvest Bank marks a significant shift for both Bidvest Group and the South African banking industry. With Access Bank set to integrate Bidvest Bank into its local subsidiary, South African customers can expect to see changes in banking services, competition, and financial strategies in the coming years.
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