Access Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020

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Access Bank Plc released its Q3 2020 Unaudited results for the period ended September 30th, 2020. Access Bank’s Gross Earnings rose 15% y/y to ₦592.8bn in 9M 2020, (9M 2019: ₦513.7bn), with interest and non–interest income contributing 63% and 37% respectively. Interest Income declined by 7% y/y to ₦375.3bn in 9M 2020 (9M 2019; ₦405.0bn), largely driven by the falling yield environment which saw income on investment securities drop by 15% y/y to ₦118.8bn.

Non-Interest Income increased by 100% y/y to ₦217.5bn (9M’19: ₦108.6bn), largely led by the year- on-year growth in trading income. Transaction fees, Commissions and Other operating income accounted for 55% and Net trading income the balance of 45%. Included in Other operating income are recoveries of ₦24.8bn. We also had strong showing in our Channels and other E-business of

₦38.8bn(+105% y/y). These gains buttress the resilience of the Bank even in these uncertain period.

Profit Before Tax (PBT) for the period rose by 16% y/y to ₦116.6bn (9M 2019: ₦100.8bn), and Profit After Tax (PAT) also grew by 16% y/y to ₦102.3bn from ₦88.4bn in 9M 2019, on the back of a 29% y/y growth in Operating income despite the rise in Impairment Charges and Operating Expenses. Accordingly, Return on Average Equity (ROAE) stood at 21.2% with a Return on Asset (ROAA) of 1.8% in the period.

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The assets base of the Bank remained strong and resilient with Total Assets of ₦7.93trn in September 2020, a growth of 11% YTD from ₦7.14trn in December 2019. Net Loans and Advances totaled ₦3.53trn as at September 2020 (December 2019: ₦3.06trn).

Customer Deposits increased by 24% YTD to ₦5.26trn in September 2020 from ₦4.26trn in December 2019. Low cost deposits (Current Accounts and Savings Accounts) accounted for 62.4% of the deposit base. Savings accounts deposits closed at ₦1.23trn as at September 2020.

Capital Adequacy Ratio (CAR) remained well above regulatory minimum at 20.3%, reflecting the adjusted impact of the IFRS 9 implementation. Similarly, Liquidity ratio of 48.0% (December 2019: 47.0%) remained well above regulatory requirements.

Non-Performing loans (NPL) ratio stood at 4.2% as at September 2020 (December 2019: 5.8%), on the back of a ₦70.1bn write-off and cautious restructuring in the period.

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Net Interest Margin (NIM) of 5.1% in 9M 2020 from 6.8% in 9M 2019, while Average Cost of Funds (CoF) decreased 160bps y/y to 3.6% from 5.2% in 9M 2019 (Actual CoF in the period was 3.5%). Yield on Assets of 9.7%, down by 336bps y/y from 13.0% in 9M 2019. These are on the back of the declining yield environment.

Cost-to-Income Ratio (CIR) declined by 176bps y/y to 62.1% in 9M 2020 (9M 2019: 63.8%), despite the high cost of operation of the enlarged business scale. We continue to drive our cost transformation initiatives to minimize cost, which will result in improved efficiency ratios.

Herbert Wigwe, GMD/CEO comments

Access Bank delivered strong top- line figures despite a challenging and fast-changing macro and banking landscape, occasioned by the COVID-19 Pandemic and the consequent decline in oil price. This is an attestation to the effective execution of our strategies and strong risk management culture.

Read Also:  Renaissance Capital forecasts improved food prices to ease inflation in Q4

herbert-wigwe Brandspurng Access Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020
Herbert Wigwe, GMD/CEO

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The Group recorded gross earnings of ₦592.8bn (+15% y/y), on the back of a 100% y/y growth in non-interest income to ₦217.5bn, butressing the effectiveness of our strategy and capacity to generate sustainable revenue. We contined to grow our transaction banking income through the optimisation of our channels and electronic banking platforms (+105% y/y), notwithstanding the reduction in transaction charges following the revised guide to bank charges in December 2019. Despite the high cost of operating the enlarged franchise and increase in net impairment charge, Profit Before Tax stood at ₦116.6bn.

Customer deposits also grew by 24% YTD to ₦5.26trn in Sep’ 2020 with a strong savings account deposits of ₦1.23trn. Similarly, net loans and advances grew by 15% to ₦3.53trn.We maintained a robust capital and liquidity positions of 21.1% and 48.0% respectively, well above regulatory levels. We recorded consistent growth in our retail banking business, as evidenced by the growth in customer sign-on by 3.2mn customers YTD via our financial inclusion strides. Transaction volume and value also grew based on our deliberate investments in digital banking .

Asset quality continued to improve as guided to 4.2%, on the back of impairment charges, strong recoveries and a robust risk management approach. This is expected to trend downwards as we strive to surpass the standard we had built in the industry prior to the merger with Diamond Bank.

We have continued to grow our African footprint in a capital-efficient and profitable manner, in furtherance of our vision to be the World’s most respected African Bank and Africa’s payment gateway. Our African expansion strategy is two-pronged; consolidating in markets we already exist (Mozambique and Zambia) to become major players, and entering into new key African markets and trade corridors (Guinea, Kenya and South Africa).

In addition, we have received the Central Bank of Nigeria’s Approval-In-Principle for a holding company (“HoldCo”) structure which will enable us further accelerate our objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.

The year has been challenging for all and I would like to appreciate our customers for their unwavering loyalty in these uncertain times. Recognizing the adverse effects of the recent events on our customers, we remain committed to delivering superior value to our customers and providing innovative solutions for the markets and communities we serve.

Going into the last quarter of the year, our focus remains on consolidating our retail momentum and expanding our African footprint.The next two years will see updates with regards the realization of synergies and actualization of the Bank’s strategic intent. Finally, I would like to thank our people and shareholders as we could not have achieved these feats without their dedication, commitment and support.

 

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Access Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand SpurAccess Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand Spur

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Access Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand SpurAccess Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand Spur

Latest News

Spackman Entertainment Group’s Upcoming Musical Film THE BOX, Starring EXO’s Chanyeol, Scheduled To Be Released In The Spring Of 2021

  • Following the art film STONE SKIPPING, THE BOX is the next film production of the Company's wholly‐owned indirect subsidiary, Studio Take, founded by veteran movie producer, Mr. Song Dae‐chan
  • THE BOX will be EXO's Chanyeol's first lead acting role in a film
  • Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX is set to be screened in Korea in the spring of 2021

SINGAPORE - Media OutReach - 3 March 2021 - Spackman Entertainment Group Limited ("Spackman Entertainment Group" or the "Company" and together with its subsidiaries, the "Group"), one of Korea's leading entertainment production groups, wishes to announce that its upcoming musical film THE BOX, produced by the Company's indirect wholly-owned subsidiary, Studio Take Co., Ltd. ("Studio Take"), is set to be released in Korea in the spring of 2021.


Following the art film STONE SKIPPING, THE BOX is the next film production of Studio Take, which was founded by veteran movie producer, Mr. Song Dae‐chan.

THE BOX is about the musical journey of an aspiring singer and a once popular producer.

Directed by Yang Jung Woong, the Executive Producer of the 2018 PyeongChang Winter Olympics opening and closing ceremonies, THE BOX stars EXO's Chanyeol who plays the aspiring singer and Jo Dal Hwan who acts as the once popular producer. This is Chanyeol's first lead role for a Korean commercial film. Jo Dal Hwan is known for his role in SECRET HEALER (2016), TRAFFICKERS (2012) and THE CON ARTISTS (2014).


About Spackman Entertainment Group Limited

Spackman Entertainment Group Limited ("SEGL" or the "Company"), and together with its subsidiaries, (the "Group"), founded in 2011 by Charles Spackman, is one of Korea's leading entertainment production groups. SEGL is primarily engaged in the independent development, production, presentation, and financing of theatrical motion pictures in Korea. According to Variety, Korea was the world's fourth largest box office market in 2019, behind only North America, China and Japan.


The Group also invests into and produces Korean television dramas. In addition to our content business, we also own equity stakes in entertainment-related companies and film funds that can financially and strategically complement our existing core operations. SEGL is listed on the Catalist of the Singapore Exchange Securities Trading Limited under the ticker 40E.

Production Labels

SEGL's wholly-owned Zip Cinema Co., Ltd. ("Zip Cinema") is one of the most recognised film production labels in Korea and has originated and produced some of Korea's most commercially successful theatrical films, consecutively producing 10 profitable movies since 2009 representing an industry leading track record. Recent theatrical releases of Zip Cinema's motion pictures include some of Korea's highest grossing and award-winning films such as CRAZY ROMANCE (2019), DEFAULT (2018), MASTER (2016), THE PRIESTS (2015), COLD EYES (2013), and ALL ABOUT MY WIFE (2012). For more information on Zip Cinema, do visit http://zipcine.com


SEGL also owns Novus Mediacorp Co., Ltd. ("Novus Mediacorp"), an investor, presenter, and/or post-theatrical distributor for a total of 79 films (58 Korean and 21 foreign) including ROSE OF BETRAYAL, THE OUTLAWS and SECRETLY, GREATLY, which was one of the biggest box office hits of 2013 starring Kim Soo-hyun of MY LOVE FROM THE STARS, as well as FRIEND 2: THE GREAT LEGACY. In 2012, Novus Mediacorp was also the post-theatrical rights distributor of ALL ABOUT MY WIFE, a top-grossing romantic comedy produced by Zip Cinema. In 2018, THE OUTLAWS, co-presented by Novus Mediacorp broke the all-time highest Video On Demand ("VOD") sales records in Korea. For more information on Novus Mediacorp, do visit http://novusmediacorp.com.


The Company owns a 100% equity interest in Simplex Films Limited ("Simplex Films") which is an early stage film production firm. The maiden film of Simplex Films, JESTERS: THE GAME CHANGERS (2019), was released in Korea on 21 August 2019. Simplex Films has several line-up of films including A BOLT FROM THE BLUE (working title).


The Company owns a 100% equity interest in Take Pictures Pte. Ltd. ("Take Pictures") which produced STONE SKIPPING (2020) and shall release THE BOX and GUARDIAN (working title) in 2021 tentatively.


The Company owns a 100% equity interest in Greenlight Content Limited ("Greenlight Content") which is mainly involved in the business of investing into dramas and movies, as well as providing consulting services for the production of Korean content. Through the acquisition of Greenlight Content, the Group's first co-produced drama, MY SECRET TERRIUS, starring top Korean star, So Ji Sub, achieved #1 in drama viewership ratings for its time slot and recorded double digits for its highest viewership ratings. Greenlight Content was one of the main investors of MY SECRET TERRIUS.


The Company owns a 20% equity interest in The Makers Studio Co. Ltd., which plans to produce and release four upcoming films, the first of which will be THE ISLAND OF THE GHOST'S WAIL, a comedy horror film.


Our films are theatrically distributed and released in Korea and overseas markets, as well as for subsequent post-theatrical worldwide release in other forms of media, including online streaming, cable TV, broadcast TV, IPTV, video-on-demand, and home video/DVD, etc. We release all of our motion pictures into wide-theatrical exhibition initially in Korea, and then in overseas and ancillary markets.

Talent Representation

The Company holds an effective shareholding interest of 43.88% in Spackman Media Group Limited ("SMGL"). SMGL, a company incorporated in Hong Kong, together with its subsidiaries, is collectively one of the largest entertainment talent agencies in Korea in terms of the number of artists under management, including some of the top names in the Korean entertainment industry. SMGL operates its talent management business through renowned agencies such as MSteam Entertainment Co., Ltd. (Son Ye-jin, Lee Min-jung, Ko Sung-hee), UAA&CO Inc. (Song Hye-kyo, Yoo Ah-in, Park Hyung-sik), Fiftyone K Inc. (So Ji Sub, Ok Taec-yeon), SBD Entertainment Inc. (Son Suk-ku), and Kook Entertainment Co., Ltd. (Kim Sang-kyung, Kim Ji-young). Through these full-service talent agencies in Korea, SMGL represents and guides the professional careers of a leading roster of award-winning actors/actresses in the practice areas of motion pictures, television, commercial endorsements, and branded entertainment. SMGL leverages its unparalleled portfolio of artists as a platform to develop, produce, finance and own the highest quality of entertainment content projects, including theatrical motion pictures, variety shows and TV dramas. This platform also creates and derives opportunities for SMGL to make strategic investments in development stage businesses that can collaborate with SMGL artists. SMGL is an associated company of the Company.


The Company owns a 100% equity interest in Constellation Agency Pte. Ltd. ("Constellation Agency"). Constellation Agency, which owns The P Factory Co., Ltd. ("The P Factory") and Platform Media Group Co., Ltd. ("PMG"), is primarily involved in the business of overseas agency for Korean artists venturing into the overseas market. The P Factory is an innovative marketing solutions provider specializing in event and branded content production. PMG is a talent management agency which represents and manages the careers of major artists in film, television, commercial endorsements and branded entertainment.

Strategic Businesses

The Company owns a 100% equity interest in Frame Pictures Co., Ltd. ("Frame Pictures"). Frame Pictures is a leader in the movie/drama equipment leasing business in Korea. Established in 2014, Frame Pictures has worked with over 25 top directors and provided the camera and lighting equipment for some of Korea's most notable drama and movie projects including ITAEWON CLASS (2020), HOW TO BUY A FRIEND (2020), KIM JI-YOUNG, BORN 1982 (2019), FOUR MEN (2019) and ASADAL CHRONICLES (2019).

We also operate a café-lounge called Upper West, in the Gangnam district of Seoul and own a professional photography studio, noon pictures Co., Ltd.

For more details, do visit http://www.spackmanentertainmentgroup.com/

Access Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand Spur
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- Advertisement -Access Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand SpurAccess Bank reports 15.7% rise in Profit After Tax to ₦102.3Bn in Q3 2020 - Brand Spur