Bank targets 22% return on equity in 2017

Access Bank Plc has announced that it is targeting a 22 per cent Return on Equity (ROE), at the end of 2017.

The figure is however, higher than 14.8 per cent in 2013 and 18.8 per cent achieved as at September 30, 2016.

ROE is the amount of net income returned as a percentage of shareholders equity. It also measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.

The Managing Director of the bank, Herbert Wigwe, said this reviewing its performance and making future projections at the bank’s 2016 investors’ forum held in Lagos at the weekend.

He explained that the bank, over the last four years has driven its strategy through increased focus on the transformation of its operating model to enable it become one of the top three across key financial indices by 2017.

He added that the bank during the period had consistently grown its profit margin from 17 per cent in 2013 to 21 per cent in 2016.
Furthermore, he explained that the bank, as part of strategy to derisk its business, avoided risky exposures to the power and downstream oil and gas sectors and controlled loan growth within set guidance.

He added that the bank ensured disciplined capital plan in alignment with its five-year rolling strategic plan, optimised capital structure to provide support the growth of the business Wigwe disclosed that the bank would focus on strengthening its financial stability with continued efforts on long-term growth and shareholders value creation in the next financial year.

According to him, the bank is poised to maintaining stable asset quality on the back of disciplined risk management and solid liquidity position to enable it take advantage of future growth opportunities.

“We have delivered strong and consistent results, which reflect our resolve to effectively execute our strategy and consistently deliver on our promise.