Access Bank grosses N72 billion in Q3


Access Bank Plc has announced its profit before tax of N72 billion, representing 19 per cent in Q3 of 2016 compared to N60.4 billion recorded in 2015.

The figures which are contained in the bank’s unaudited account published recently also shows that profit after tax improved by similar margin from N48.1 billion in 2015 to N57.1 billion in 2016.

The bank’s group managing director, Mr. Herbert Wigwe attributed the improved performance to enhanced business efficiency as a result of the effective execution of its long-term strategy.

Besides, he said the bank implemented a disciplined capital plan, ensuring sufficient levels of profit retention to support its growth.

Gross earnings also stood at N274.5 billion, seven per cent rise over N257.6 billion achieved during the same period in 2015.

This was attributed to the growth in gross earnings driven by 17 per cent increase in interest income on the back of continued growth in the bank’s core business.

The bank posted 12 per cent growth in operating income to N199.3 billion from N178.1 billion in 2015.

Customers’ deposits grew 25 per cent to ₦2.10 trillion from ₦1.68 trillion in December 2015.

Its capital adequacy ratio (CAR) stood at 19 per cent Q3, well above the regulatory minimum. The Bank’s asset quality ratios also improved as the percentage of non-performing loans (NPLs) to total gross loans stood at 2.1 per cent compared to 1.7 per cent in December 2015.

The NPL coverage ratio remained strong at 209.5 per cent in the period, compared with 216.4 per cent as at December 2015.

Further analysis of the result showed that cost to income ratio (CIR) improved 190bps year-on-year (y/y) to 57.7 per cent in Q3 on the back of strong income growth during the period while total assets stood at N3.39 trillion, up 31 per cent compared to N2.59 trillion in December 2015.

“Access Bank’s performance in the first three quarters of this year remained strong and consistent, reflecting a stable business with the capacity to deliver sustainable returns, particularly during a period underlined by significant macro headwinds,” said Wigwe

He added that the bank maintained stable asset quality, recording NPL and cost of risk ratios (CRR) of 2.1 per cent and 0.9 per cent, respectively.

“Our capital and liquidity position remained adequately above regulatory levels, as we continued to implement a disciplined capital plan, ensuring sufficient levels of profit retention to support our growth. In addition to capital enhancement, the recently concluded $300 million senior unsecured debt issue allows us optimise and enhance our foreign currency funding capacity whilst strengthening our balance sheet.

“We remain committed to our cost containment plan, as we strive to balance operational efficiency with earnings growth in a constrained environment. The Bank will remain resilient in the achievement of its strategic imperatives; maximising our strong market position and solid capital base, while leveraging digital innovation to improve service touch points as we sharpen our retail play with emphasis on cheaper funding sources,” he said.



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