The Access Bank UK has agreed to acquire Zempler Bank for approximately GBP 3.45 per share, representing a significant reduction from the digital bank's 2020 valuation.
The UK-based small business lender, formerly known as Cashplus, received a GBP 80 million valuation in its 2020 fundraising round, which priced shares at just over GBP 9. The acquisition represents a substantial decrease from this previous valuation.
Credit quality challenges affect lending portfolio
The company attributed higher charge-offs to increased delinquencies resulting from the cost-of-living crisis and early defaults from prior year acquisitions following a prolonged period of muted lending. Zempler also cited proactive balance sheet management of accounts on long-term repayment plans.
The Access Bank UK, a subsidiary of Nigeria's Access Bank, reported pre-tax profit growth of 14.5% to GBP 173.4 million for the 2024 financial year. The lender specialises in trade lending, asset management, and private banking for UK-based clients, operating as the UK subsidiary of Nigeria's largest bank.
The transaction has received regulatory approval and is expected to be completed in the coming weeks, according to statements from both companies provided in previous reports.
Market positioning in SME banking
Zempler Bank provides business current accounts, lending products, and payment services to small and medium enterprises and microbusinesses in the UK.
Access Bank Group operates across Africa, Europe, the Middle East, and Asia, with total assets exceeding USD 100 billion, according to its data. The group has pursued international expansion through acquisitions and organic growth, establishing a presence in financial centres including London, Dubai, and Hong Kong.
UK SME lending contracted during 2023 and 2024 as higher interest rates and economic uncertainty reduced demand for business credit. Traditional banks and challenger banks both experienced portfolio pressures from elevated default rates and slower origination volumes.
Regulatory approval for the transaction came from the Prudential Regulation Authority and Financial Conduct Authority, which oversee bank acquisitions involving UK-authorised institutions.
