Access Bank’s First Post-Merger H1 PAT Hits N63.01bn, Declares 25k Interim Dividend

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According to its H1’19 financial report released on Friday, 6th September 2019, Access Bank Plc., one of Nigeria’s tier-1 lenders grew its Gross Earnings and PAT for H1’19 by 28% and 59% to ₦324.4bn and ₦63.0bn respectively, compared to the corresponding period of 2018.

The Bank delivered a Profit before Tax (PBT) of N74.1 billion, a 62% increase from N45.8 billion recorded during the same period in 2018.

Similarly, the Bank posted a 34% growth in Operating Income to N202.3 billion from N151.4 billion in 2018. Total Asset was up 31% at ₦6.48 trillion as at June 2019 in comparison to ₦4.95 trillion in December 2018.

Access Bank’s Capital Adequacy Ratio (CAR) remained solid at 20.8%, 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 a sustainable business model coupled with effective execution as we make solid gains towards the achievement of our strategic goals”.

The increase in the group’s Profit within the period under review was jointly driven by an 93% increase in Net Interest Income After Impairment Charges to ₦150.3 billion, 25% growth in Net fees and commission income to ₦37.5 billion, 138% growth in Other operating income to ₦24.4 billion and a 44% reduction in Foreign exchange losses from ₦33.8 billion to ₦18.9 billion.

Following the release of the half-year results, the Bank also declared an interim dividend of 25k to its shareholders.

“Our focus on retail gained momentum during the period, as continued investments in our channels platform resulted in a 29% contribution to gross fee and commission income, up 92% from the corresponding period in 2018. The strong retail contribution demonstrates the effectiveness of our continued drive around low-cost deposits, on the back of an innovative digital platform. Asset quality improved as guided, to 6.4% on the bank of a robust risk management approach. This is expected to trend into the future as we strive to hit and surpass the standard we had built in the industry prior to the merger. Similarly, liquidity ratio improved year on year to 49.7%, reflecting deliberate steps to optimise our balance sheet in order to ensure the group’s liquidity position remains robust.” Wigwe added.

As a consequence of the merger, total assets went up by 31% YTD from ₦4.95trn in December 2018 to ₦6.49trn in June 2019. The groups’ Loans and Advances to customers rose by 33% YTD to ₦2.65 trillion as at June 2019 while Deposits from customers expanded 63% YTD to ₦4.18 trillion.

Conclusively, the group’s EPS for H1’19 rose by 40% to ₦1.93 as against ₦1.38 in H1’18.

“Going into the second half of the year, our focus is on consolidating the momentum and driving access to financial inclusion through our various agency initiatives. Additionally, we will remain disciplined in our efforts to deliver enhanced shareholder value, as we continue to realise the synergies from our newly expanded franchise” he noted.