Access Bank records 42 per cent increase in gross earning
Declares 25k interim dividend for H1 2017
Access Bank Group’s audited half year (H1) results released to the Nigerian Stock Exchange (NSE), has showed gross earnings of N246.6billion, up 42 per cent from N174.1billion in the corresponding period of 2016.
The growth in gross earnings was driven by 66 per cent increase in interest income on the back of continued growth in the Bank’s core business and 34 per cent non-interest income underlined by strong FX income on the Bank’s trading portfolio.
The Bank’s Profit before Tax (PBT) also showed an increase of 18 per cent from N43.9billion recorded during the same period in 2016. Profit after Tax (PAT) grew by a similar margin from N33.6billion in 2016 to N39.5billion in H1 2017.
Similarly, the Bank posted 29 per cent growth in Operating Income to N167.5billion from N130.2billion in 2016. Total Asset was flat at ₦3.46trillion as at June 2017, in comparison to ₦3.48trillion in December 2016.
Access Bank’s Capital Adequacy Ratio (CAR) remained solid at 21.6 per cent, well above the regulatory minimum. Commenting on the result, Group Managing Director/CEO, Herbert Wigwe said: “Access Bank’s performance in the first half of the year reflects the strength and sustainability of our business as well as the effective execution of our strategy.”
According to him, the Group maintained stable asset quality, recording NPL and Cost of Risk Ratios (CRR) of 2.5 per cent and 1.0 per cent, respectively. Following the release of the half year results, the Bank also declared an interim dividend of 25k to its shareholders.
“We maintained stable asset quality, recording non-performing loans and cost of risk ratios of 2.5 per cent and 1.0 per cent, respectively and wound down on our foreign currency exposures as a deliberate strategy to de-risk the business.
“As we cautiously grow our loan portfolio in light of macro realities, we will continue to uphold our proactive risk management principles in order to maintain asset quality within acceptable limits. Whilst balancing our appetite for growth and profitability, we remain committed to maintaining solid liquidity and capital ratios,” Wigwe added.
Further analysis of the result indicated a 38 per cent increase year-on-year to N105.1billion (H1 2016: N75.9billion) and 34.8 per cent quarter-on-quarter, driven majorly by the highly inflationary environment and devaluation impact on cost.
“Our retail expansion drive led to investments in our channels, distribution network, service quality, and brand enhancement. These, as well as AMCON charges resulted in higher operating expenses in the period. We continued to, however, intensify the implementation of our cost reduction initiatives in order to improve the bottom-line despite high inflationary environment.
“In view of the recovering macro, our focus remains growing the retail franchise through digital expansion to enable diversified earnings as well as continuous and proactive risk management as we selectively grow risk assets. We will remain resilient in the execution of our bold strategy for increased growth and profitability whilst maximising shareholder value in 2017 and beyond,” Wigwe assured.
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