Access Bank posts N319.9 billion gross earnings, profit declines

Proposes a final dividend of 40 kobo
Access Bank Plc has achieved gross earnings of N319.9 billion for the financial year ended December 31, 2017, against ₦247.2 billion recorded in the corresponding period of 2016.

The bank’s audited result showed that total income grew by ₦459.1billion, representing an increase of 20 per cent over ₦381.3 billion recorded in the same period in 2016.

However, profit before tax declined by 11 per cent to ₦80.1 billion from ₦90.3 billion in 2016, while net interest income grew by 17 per cent to ₦163,452 billion in 2017, from ₦139,148 billion in the comparative period of 2016.

Similarly, non-interest income grew by four per cent to ₦139.1billion, in 2017 from ₦133.4 billion in 2016, leading to an 11 per cent increase in the Group’s operating income to ₦302,596 billion in 2017, from ₦272,605 billion in 2016.

The bank explained that the growth in the Group’s earnings is underlined by an expansion in its core business, on the back of an enhanced asset.

Loans and advances grew 11 per cent to ₦2,064 trillion in 2017, from ₦1,855 trillion in December 2016.

The total assets of the bank also grew by 18 per cent to ₦4,102 trillion in December 2017, from ₦3,484 trillion in the corresponding period of 2016, as the Group recorded an increase of 13 per cent in shareholders’ returns at ₦515 billion in December 2017, from ₦454 billion in the corresponding period of 2016.

“Although the Group posted significant growth in earnings, the adverse and lingering effects of the macro on asset quality in the industry led to the bank taking prudent provisions in the course of the year, thereby dampening profitability, as profit before tax declined 11 per cent to ₦80.1 billion in 2017 from ₦90.3 billion in 2016.

“Nonetheless, Access Bank’s fundamentals remain strong and the Group remains poised for sustainable growth in the coming periods,” the bank’s Group Managing Director, Herbert Wigwe, said.

The group proposes a final dividend of 40 kobo per share to its shareholders, in addition to 25 kobo interim dividend paid during the period, making a total of 65Kobo for the financial year, but subject to approval at the yearly general meeting.