Tuesday , December 7 2021
Access Bank PAT Grew by 28%, Records N222 Billion Gross Earning in Q1 2021

Access Bank PAT Grew by 28%, Records N222 Billion Gross Earning in Q1 2021



In its unaudited financial statement for the first quarter (Q1) ended March 31, 2021, Access Bank has disclosed its Profit after Tax grew by 28 per cent to N52.6 billion billion compared with N40.9 billion in 2020 in three months.

This is coming on the back of a 13 per cent growth in operating Income and a 16 per cent reduction in interest expense.

According to the bank, Profit Before Tax (PBT) rose by 30 per cent to N60.1 billion, from N46.2 billion during the period under review.

Despite the challenging operating environment, the bank recorded gross earnings of N222.1 billion, which was an increase by six per cent, from N209.8 billion posted in the corresponding period of 2020.

Net interest income stood at N81.4 billion, more than one-fourth bigger than the figure reported for the same period of last year, even though the income category was capped by impairment charge.

Charges for loan impairment rose by almost half to N12.6 billion, underscoring the forecast of credit rating agency Fitch that the impaired loans of the Nigerian banking industry would accelerate by between 10 to 12 per cent of total credit asset by the end of this year.

 

ALSO READ: Access Bank Buys 78.15% Stake in Atlas Mara Subsidiary’s Bank

Net fee and commission income swelled 33.6 per cent to N30.7 billion, according to the earnings report published by the Nigerian Exchange Limited.

Commenting on the results, Group Chief Executive Officer of Access Bank Plc, Mr. Herbert Wigwe, said the performance showed the strong capacity of their business to generate sustainable earnings on the strength of their balance sheet, diverse revenue streams and their dedicated people.

“As a result of effective implementation of our cost reduction strategy, operating expenses remained flat, despite the inflationary environment and increased regulatory cost. Our retail banking business also showed steady growth with a 112 per cent increase in revenue to N57.5 billion and a 941,631 new customer sign-on via our financial inclusion drive during the quarter. This improvement is evidenced by the consistent and robust savings account growth to N1.3 trillion , leading to asignificant reduction in our cost of funds,” Wigwe said.

According to him, with the increased adoption of digital channels and the growing customer base, the bank recorded a 29 per cent growth in USSD transaction value and 40 per cent increase in mobile and internet banking transaction value.

“In line with our risk appetite and efficient risk management, our asset quality continued to improve as guided with NPL Ratio of4.0 per cent (Dec. 2020 4.3 per cent), as we intensified our recovery efforts. Likewise, we expanded our loan portfolio cautiously as reflected by the marginal growth in our net loans and advances to N3.65 trillion year-to-date (Dec 2020: N3.61trillion).

Furthermore, we maintained robust capital and liquidity positions, well above regulatory levels with a Capital Adequacy Ratio of 22.2 per cent and a liquidity ratio of 48.3 per cent, positioning ust o support our customers across various markets and adequately execute our expansion strategy,” he added.

Wigwe stated that in furtherance of their vision to be the World’s most respected African bank and Africa’s payment gateway, they remain committed to a disciplined and thoughtful expansion strategy.

“Leveraging the African Continental Free Trade Agreement (AfCFTA), we will focus on key markets to drive outside Africa and intra-Africa trade. In alignment with our objectives, we recently announced our intention to acquire a majority shareholding in African Banking Corporation of Botswana Limited to further strengthen our Southern African footprint. Looking at the quarters ahead, we are poised for strong earnings growth fueled by our retail momentum, robust balance sheet, and operational efficiency,” he said.

Access Bank announced two acquisitions in the last one month including the takeover of the controlling stake worth $60 million in South Africa’s Grobank and the planned purchase of Botswana’s African Banking Corporation.

Its asset valuation is now put at N9.1 trillion for the first quarter of 2021. That compares with the N8.7 trillion of last year.

Herbert Wigwe-led Access Bank wants 30 per cent of its profit to come from outside its home market and has revealed plans to foray into eight markets of huge potential in Africa, from Angola to Morocco.

 

 

 

Access Bank Q1 2021 unaudited financial statement.

 

 


About Bukola Olanrewaju

Check Also

Stanbic IBTC Infrastructure Fund Invests In 20,000MT LPG Storage Facility

Stanbic IBTC Infrastructure Fund Invests in 20,000MT LPG Storage Facility

Stanbic IBTC Infrastructure Fund is delighted to announce its investment in the construction of a …

Leave a Reply

Your email address will not be published. Required fields are marked *