Money market

Access bank, 2 others report N1.3trn gross earnings Q3

By Ayobami Adedinni

A group of 3 Tier 1 banks led by Access Bank Plc for the third Quarter of 2017, reported gross earnings of N1.368 trillion, Nigerian NewsDirect can exclusively report.

Other banks are FBN Holdings Plc. (FBN Holdings) and Ecobank Transnational Incorporated (ETI).

Access Bank Group’s unaudited nine-month results released to the Nigerian Stock Exchange (NSE) showed that its Gross Earnings gained 33 per cent to N365.05 billion from N274.5 billion in prior year.

The growth in gross earnings was driven by 36per cent increase in interest income to N245.87 billion from N181 billion, on the back of continued growth in the Bank’s core business.

Notably, Access Bank announced N116.5 billion net foreign exchange income in the nine months ended September 30, 2017 as against a loss of N53.7 billion reported in corresponding period of 2016.

Access Bank had paid shareholders an interim dividend of 25k to its shareholders in the half year of 2017 as analysts said, dividend payment to shareholders might increase by end of 2017.

The Group Managing Director/CEO, Herbert Wigwe in a statement had said the Bank’s performance reflects the strength and sustainability of our business as well as the effective execution of our strategy.”

Commenting on half year results of 2017, he said, “As we cautiously grow our loan portfolio in light of macro realities, we will continue to uphold our proactive risk management principles in order to maintain asset quality within acceptable limits. Whilst balancing our appetite for growth and profitability, we remain committed to maintaining solid liquidity and capital ratios

Also, FBN Holdings’ gross earnings stood at N439.2billion, up 5.2per cent year-on-year (y-o-y) from N417.4 billion reported in nine months ended September 30, 2017.

The Holdings in a statement said, Gross earnings grew by 5.2per cent y-o-y to N439.2 billion (Sept 2016: N417.3 billion), driven largely by a 27.8per cent growth in interest income.

The bank had last week announced N45.8 billion Profit representing 7.8 per cent in profit in its unaudited results for the nine months ended September 30, 2017.

The group in its unaudited results to Nigerian Stock Exchange (NSE) reported N42.5 billion profit in prior nine month ended September 30, 2016.

“This was partly offset by a 43.5per cent y-o-y decline in non-interest income. Interest income and non-interest income contributed 81.3per cent and 18.7per cent respectively. The growth in interest income to gross earnings was driven by increased investment in securities,” the Holdings explained in a statement.

Net-interest income increased significantly by 25.3 per cent to N254.3 billion from N202.9 billion while Non-interest income moved to N74.0 billion, a drop of 43.5per cent from N131.0 billion reported in nine months of 2016.

The group Impairment charge for credit losses was down by 14.9 per cent to N97.6 billion as against N114.7 billion reported in nine months ended September 30, 2016.

Commenting on the results, the Group Managing Director UK Eke, said: “FBN Holdings has again demonstrated its resilience in revenue generation with a 5.2per cent y-o-y growth in gross earnings to N439.2billion following a y-o-y increase of 25.2per cent in net interest income to N254.3 billion.

The Group is progressing in building the right structures for sustainable growth through an improved credit culture and risk management; increased technologically driven operational efficiencies; and the introduction of revenue enhancing platforms. The Insurance group sustained its strong performance and we expect to see further growth from the retail, corporate and annuity businesses.

He explained further that, “Similarly, we continue to see strong growth trajectory in the Merchant Banking and Asset Management group. These businesses complement our commercial banking business in our aspiration to becoming the leading financial services institution in Middle Africa.

FBN Holdings’ Total assets hits N4.9 trillion as at September 30, 2017, up 2.7per cent year-to-date (y-t-d) increase over N4.7 trillion reported in 2016 full year.

The statement said, “Total assets increased by 2.7per cent y-t-d to N4.9trillion (Dec 2016: N4.7 trillion); this was largely driven by a 7.1per cent y-t-d increase in investment securities to N1.34 trillion (Dec 2016: N1.25trillion); and a 41.9per cent y-t-d increase in loans to banks to N631.5 billion (Dec 2016: N444.9 billion).

“Earning assets have been further optimised with total interest earning assets growing by 5.7per cent y-t-d to N3.96 trillion from N3.74 trillion in December 2016, representing 81.3per cent of total assets (Dec 2016: 79.0per cent)

 Ecobank Transnational Incorporated (ETI) in its report said its growth in profitability was driven by 24 per cent increase in gross earnings to N564.46 billion in nine months ended September 30, 2017 from N456.7 billion in nine months ended September 30, 2016.

Growth in profitability was driven by 24 per cent increase in gross earnings to N564.46 billion in nine months ended September 30, 2017 from N456.7 billion in nine months ended September 30, 2016.

Its profit was N51.76 billion in the nine months ended September 30, 2016.

The pan-African financial institution Profit before tax also rose by marginally by three per cent to N69.4 billion as against N67.5 billion in prior nine months of 2016.

From balance sheet position, the group total assets gained two per cent to N6.4trillion as at September 30, 2017 as against N6.26 trillion reported in 2016 full financial year.

Deposits from customers increased by five per cent to N4.32 trillion as at September 30, 2017 from N4.1 trillion in 2016 while Loans and advances to customers rose marginally by 0.2 per cent from N2,8 trillion in 2016 to N2.83trillion as at September 30, 2016.

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