Access Bank posts N39.5b half-year profit
Access Bank Plc has recorded Profit After Tax (PAT) of N39.5 billion in its Half-year operations, against N31.3 billion posted in the corresponding period in 2015.
Specifically, the bank’s unaudited result for the second quarter ended June 30, 2016 showed that the bank’s PAT for the period rose to N39.489 billion, representing a 26.21 per cent growth when compared to N31.287 billion in Q2 2015.Profit before tax (PAT) was up 27.89 per cent to N50.022 billion in half year 2016 from N39.113 billion in Q2 2015.
The bank attributed the improved performance to significant growth in its retail market share, occasioned by its resolve to leverage innovation and technology to create lifestyle products and enhance customer experience.
“This growth has led to significant increase in our transaction volumes and fee-related income. In addition, our cost of funds dropped by 170 bps y/y reduction, reflecting the increase in our low cost funding base.”The bank’s gross earnings for the period under review stood at N174.069 billion in H1 2016, up 3.22 per cent from N168.641 billion in H1 2015.
The directors of the bank are proposed an interim dividend of 25 kobo each payable to shareholders on register of shareholding at the closure date. It added that withholding tax would be deducted at the time of payment.
The Group Managing Director/Chief Executive Officer, Herbert Wigwe, said: “Access Bank’s performance continues to be resilient in the face of a challenging macro-economic environment, which has been further exacerbated by double-digit inflation, amidst an untimely devaluation.“Despite these macro uncertainties, we delivered gross earnings of N174 billion, while pre-tax profits grew 28 per cent to N50 billion in the period.”
The results underscore our continued ability to grow sustainably whilst effectively adapting to a challenging operating landscape.“The prevalent macro-economic conditions put a strain on business performance across the industry, with increased concerns about asset quality deterioration.
He pointed out despite these challenges, the bank’s asset quality remained stable, as non-performing loans remained below industry average, in line with its guidance, while capital and liquidity levels were also sustained above regulatory limits.
“During the period, we grew our retail market share, leveraging innovation and technology to create lifestyle products and enhance customer experience. This growth has led to significant increase in our transaction volumes and fee-related income. In addition, our cost of funds dropped by 170 bps reduction, reflecting the increase in our low cost funding base.”
Furthermore, the bank explained that operating cost remained stable due to its cost management initiative assuring that optimising operational efficiency would remain an imperative for the second half of the year.
“We believe that macro conditions will remain challenging. Nonetheless, our priority in the coming months will be to strengthen our position in the industry; increasing focus on risk and operational efficiency, with customer-centricity at the heart of our strategy.”