Access Bank made N102.30bn Profit After Tax in Q3-2020

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Access Bank Plc. within the past nine months has hit the highest gross earnings of N693.1bn while Wema had the lowest gross earning of N63.08bn.
Earlier, Access Bank PLC released Q3-2020 financial result showing marginal growth in revenue by 0.71% resulting from dwindling interest income and improvement in net fees and commission income.

Notably, interest income declined by 7.34% arising from the low-interest-rate environment despite growth in credit volumes. The surge in loan impairment charges by a whopping 222.71% also contributed to a fall in Access Bank’s net interest income after impairment owing to increased credit risk environment triggered by COVID-19 and aggressive drive to meet LDR requirements from CBN.

Access Bank made N102.30bn Profit After Tax in Q3-2020

Specifically, impairment charges advanced from N10.61bn in Q3-2019 to N34.24bn in the current period while net interest income net of impairments declined by 18.82% from N199.61bn to N162.03bn.

Operating Income Shielded By Fees & Commission And Other Income

A 28.26% and 210.59% upsurge in fee and commission and other non-interest income cushions the effect of lower interest income as operating incoming advanced by 22.24% to N363.49bn.

Specifically, a 24x surge in Net gains on financial instruments to came from gains recorded on fixed-income trading derivative instruments and fair value gain on equity investments while increased fees and commission income was majorly driven by improvement in credit-related commission and e-channels fees.

A total of N28.36bn was generated from credit-related fees compared to the N 24.40bn recorded in Q3-2019 with account maintenance charges stable at N10bn.

Increased Cost Moderated Bottom Line Performance

Following the 22.24% increase in operating income, Access Bank’s operating expenses advanced by 25.60% reducing the increase in PBT to 15.69%. Notably, operating expenses advanced from N196.55 to N246.87 on the back of increased wages and salaries and other personnel expenses. Consequently, Profit after Tax rose by 15.67% from N88.44bn to N102.30bn while earnings per share (EPS) improved to N1.16 from the N0.80 realized in Q3-2019.

Access Bank made N102.30bn Profit After Tax in Q3-2020