Access Bank after tax profit hits N39.5bn in HY1 2016, increase deposits base by 17%
By Kayode Ogunwale

Access Bank Plc has reported N39.486 billion profit after tax in its consolidated and separate financial statements for the period ended 30 Jun, 2016. The group in the half year 2016 results sent to the Nigerian Stock Exchange (NSE) in Lagos show improvement of N8.199 billion, representing 26.21 per cent in profit after tax from N31.287 billion it made during the corresponding period of 2015. The group’s increased profit after tax to earnings by 22.68 per cent in half year 2016 from 18.55 per cent retained during the same period of 2015.

The Group posted a profit before tax of N50 billion, a 28 per cent year on year increase from N39.1 billion.

Its gross earnings rose from N168.641 billion to N174.069 billion at the end of review period. This represents N5.428 billion or 3.22 increase.

However, interest income upsurge by N13.431 billion from N98.861 billion to end half year 2016 at N112.292 billion. Access Bank during the review period control its income expense as it reduced by N6.858 billion from N50.699 billion to close 2016 half year at N43.841 billion.

The basic earnings per share of the group stood at 161 kobo at the end of half year 2016 from 136 kobo in 2015, represented 25 kobo or 18.38 per cent increase.

The bank’s boost its deposits base by 17.11 per cent or N288 billion from N1.683 trillion in half year 2015 to N1.970 trillion during the same period of 2016.

Also, Access Bank Plc’s loans and advances to customers improve by N381 billion to close 2016 half year with N1.746 trillion from N1.365 trillion.

The board of directors of the bank however recommended interim dividend of 0.25 kobo per share for its shareholders.

The total assets move from N2.591 trillion to N3.277 trillion in 2016, which is N686 billion increase when compare with half year 2015 total assets.

In the same vein, the total liabilities of the group increase from N2.223 trillion to N2.848 trillion at the end of half year 2016.

In the face of challenging operating conditions such as rising inflation and currency devaluation, the bank’s key indices remained stable: capital adequacy stood above the regulatory minimum at 19 per cent, while the percentage of non-performing loans to total gross loans was 1.9 per cent, which is significantly lower than CBN’s threshold and one of the best industry wide.

The bank also recorded gains in other financial indices; Net Interest Margin (NIM) was up 80 basis points year on year at 6.4 per cent, compared to 5.6 per cent from 2015; operating income grew by 11 per cent to N130.2 billion in half year 2016 compared with N117.6 billion in the corresponding period of 2015.

Commenting on the results, Group Managing Director, Herbert Wigwe stated, the bank’s performance continues to be resilient in the face of a challenging macro-economic environment, which has been further exacerbated by a double-digit inflation and currency devaluation.

“The prevalent macro-economic conditions put a strain on business performance across the industry, with increased concerns about asset quality deterioration. Despite these challenges, the Bank’s asset quality remained stable, as non-performing loans stayed below industry average, in line with our guidance. Our capital and liquidity levels were also sustained above regulatory limits.”

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, Wigwe stated.