Access Holdings H1 revenue up by 134% to N2.2tr

Access Holdings Plc has posted revenue of N2.2 trillion in its half-year (H1) operations, 134 per cent up from N940 billion recorded in the corresponding period in 2023.

A breakdown of the bank’s half year 2024 performance showed the bank’s profit before tax increased by 108.2 per cent year-on-year, from ₦167.6 billion in half-year 2023 to N348.97 billion in half year 2024, while profit after tax rose by 107.7per cent, from N135.4 billion to N281.3 billion within the same period.

According to the bank, the achievement resulted in a 103 per cent growth in earnings per share (EPS), which increased from N3.74 in the half year of 2023 to N7.58 in half year 2024.

The bank’s total assets and shareholders’ equity stood at N36.5 trillion and N2.8 trillion, respectively, representing a growth of 37.1 per cent and 29.8 per cent, respectively, while customer deposits increased by 31.3 per cent, from N15.3 trillion in December 2023 to N20.1 trillion by half year 2024.

Its gross loans and advances also recorded an increase of 37.6 per cent, from N8.9 trillion in December 2023 to N12.3 trillion by half-year 2024, from organic loan growth and the impact of foreign currency-denominated loans.

Access Holdings reported triple-digit growth across all profitability metrics, with gross revenue rising by 133.5 per cent year-on-year, from N940 billion in the half year 2023 to N2.2 trillion in the half year 2024.

According to the bank, this increase was supported by higher interest and non-interest earnings in the period. It pointed out that interest income surpassed the N1 trillion from the expansion of risk assets and effective pricing, leading to a 142 per cent growth from N606.8 billion in the half year 2023 to N1.47 trillion by the half year 2024.

Non-interest income also grew by 117 per cent, rising from N333.4 billion in half year 2023 to N723.6 billion in half year 2024. Cost-to-income ratio (CIR) remained relatively flat at 60.4 per cent in half year 2024 despite double-digit growth in inflation and devaluation in the same period. Cost to income was moderated as revenue outpaced operating expenses.

The bank explained that the increase in operating expenses was primarily from ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1 per cent and 37 per cent, respectively, and will normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses and the currency conversion impact of subsidiaries’ operating costs.

To maximise value for its shareholders, Access Holdings Plc declared an interim dividend of 45 kobo per share (the half year 2023, 30 Kobo), representing a 50 per cent increase in dividend payout.

Access Banking Group’s net interest income grew by 131 per cent from N232.2 billion in the half year 2023 to N536.7 billion in the half year 2024. Fees and commissions increased by 94 per cent year on year from N119.8 billion to N232.5 billion from higher transaction volumes on our digital channels, credit-related fees and card payments.

The banking group subsidiaries contributed 55 per cent to the Group’s profit, demonstrating the significant impact of their operations and growing importance in driving overall profitability. Year-on-year, their PBT performance grew by 218 per cent from N63.3 billion to N201.7 billion.