Access Bank Records 22% Growth in Gross Earnings, ₦74.3bn Profit

Access Bank has recorded improved gross earnings of ₦396.8bn, a 22 per cent growth from its last audited report and ₦74.3bn profit before tax

TheConscience reports that the Bank in its latest first half of the year 2020 report indicated significant rise in earnings in the first half of the year, despite the challenges and uncertainties occasioned by the COVID-19 Pandemic. The report states ₦396.8bn earning compared to N324, 376bn in H1, 2019, as well as ₦74.3bn Profit Before Tax compared to N72, 965bn in H1, 2019, despite the high cost of operation and increase in net impairment charge.

Herbert Wigwe, the Chief Executive Officer said, “Access Bank delivered robust earnings in the first half of the year, despite the challenges and uncertainties occasioned by the COVID-19 Pandemic. The Group recorded gross earnings of ₦396.8bn (+22% y/y), on the back of a 191% y/y growth in non-interest income to ₦150bn, buttressing the efficacy of our strategy and capacity to generate sustainable revenue. We continued to grow our trading and transaction banking income through the optimisation of our channels and electronic banking business, notwithstanding the reduction in transaction charges.”

Commenting on the outlook, Wigwe revealed that Access Bank maintained a robust capital position, underpinned by a resilient and well diversified business. Our capital and liquidity positions are well above regulatory levels with a Capital Adequacy Ratio of 20.0% and a liquidity ratio of 44.7%. Leveraging investments in digital banking post-merger, we have seen a growth in our retail banking business even in the Pandemic, as evidenced by the growth in customer sign-on, transaction volume and value, and increased adoption of our digital channels, TheConscience reports.

Speaking on how Access Bank fared during the period under review, he said, “The Bank took several management actions to proactively identify and resolve loan performance concerns. This is in line with our long-term approach to risk management in order to maintain resilience and sustainability in our Balance Sheet. Reflecting this is our NPL ratio of 4.4%, backed with write-offs and restructuring in cases where customers have shown willingness and capacity to repay.”

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On the future, the CEO explained that, “while the other half of 2020 will remain challenging, digital banking has become more essential than ever in the pursuit of sustainable earnings. We are confident that our purposeful strategy, diversified model, and investment in digital solutions will ensure that we remain resilient and continue to support our stakeholders to recover and thrive.”

Wigwe stated further that Access Bank played a strategic role in mitigating the impacts of Covid-19 in collaboration with CACOVID.

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“Being a Systemically Important Nigerian Bank, we took decisive measures to keep the Nigerian economy going by committing resources and providing the support needed by our customers, colleagues, and communities. We were also at the forefront of Nigeria’s fight against the novel Coronavirus through the Coalition Against COVID-19 (CACOVID) initiative. Working with several partners in the private sector, the coalition successfully pooled together funds which were deployed to deliver the financial, material and technical aid needed to save millions of lives, including feeding 1.7mn households across the country.

These are all in addition to a 3-month concession on repayments of existing SME loans and easy access to working capital finance. Working with the Central Bank Nigeria, we also provided intervention funding and payment holidays to support the Agriculture, Manufacturing and Healthcare sector,” he noted.