Bidvest Group is in the process of selling off its financial services assets, with the most significant deal being the sale of Bidvest Bank to Nigeria’s Access Bank for R2.8 billion (approximately $159 million US Dollars). This transaction is expected to be finalized within the next three months.
A Strategic Shift in Financial Services
During the financial year that ended on June 30, 2025, Bidvest officially began dismantling its financial services segment. The company has initiated a formal process to divest from Bidvest Bank, which offers a full range of services including foreign exchange, fleet management, and various personal and business financial products.
In December 2024, Access Bank, which is Nigeria’s largest lender, agreed to acquire 100% of the share capital of Bidvest Bank Holdings Limited. The R2.8 billion deal is contingent upon receiving all necessary regulatory approvals. Access Bank is a major global player, serving over 60 million customers with a network of 700 branches in 23 countries across three continents.
Bidvest has stated that the sale of the bank is anticipated to close within the next quarter, and the bank’s value is now listed as “held-for-sale” on the group’s financial statements.
In addition to Bidvest Bank, the group is also shedding other financial services businesses:
- FinGlobal: The group sold 100% of its share capital in this cross-border financial services company to Momentum Strategic Investments Pty Ltd for R201 million.
- Bidvest Asset Management: The group disposed of its share capital in this entity for R2 million.
- Bidvest Life: The group has also received a binding offer of R130 million for 100% of its share capital in Bidvest Life.
The remaining short-term insurance businesses from the financial services segment have been transferred to the group’s automotive division, where they will primarily focus on vehicle insurance and related products.
Mixed Financial Performance
These asset sales are taking place against a backdrop of mixed financial results for Bidvest Group. While some segments faced significant pressure, others performed well.
- Under Pressure: The Freight segment saw a 10.0% decline in earnings, while Commercial Products experienced a substantial 28.4% contraction.
- Strong Performance: These declines were offset by robust growth in Services South Africa (+13.6%), Services International (+12.1%), Branded Products (+7.8%), and Automotive (+2.5%).
The group also highlighted the strong performance of its investment in JSE-listed Adcock Ingram.
Despite the varying performance across its segments, a key highlight of the group’s results was its outstanding cash conversion of 95.3%.
Key Financial Metrics
Here is a snapshot of Bidvest Group’s overall financial performance for the year:
- Revenue: Increased by 5% to R126.6 billion.
- Trading Profit: Rose by 1% to R12.0 billion, though the trading profit margin decreased by 40 basis points to 9.5%.
- Cash Flow: Cash generated from operations grew by 6% to R14.7 billion.
- Earnings per Share (EPS):
- Group basic earnings per share declined by 5% to 1,873.8 cents.
- Group normalized headline earnings per share (HEPS) decreased by 1% to 1,952.7 cents.
- The group’s overall EPS decreased by 4.7% to 1,785.5 cents, primarily due to a 4.2% contraction in continuing operations EPS and a significant drop in profit from discontinued operations.
- Dividend: The group declared a final dividend of 453 cents per share, a 1% increase from the previous year.
The group also made a strategic acquisition of the hygiene company Citron, which provides a platform for future growth in North America. Additionally, a new 25-year concession in Richards Bay will allow for further investment in long-term terminal assets.
