Access Bank reports 58% increase in PAT to N94.98bn

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Story by Kayode Tokede and Olabode Jegede

Access Bank Plc has released its audited financial results for the full year (FY) ended December 31, 2018 showing an increase of 58 per cent in Profit After Tax (PAT) to N94.98 billion from N60.1 billion in the corresponding period of 2017.

The Bank’s audited account and results released to The Nigerian Stock Exchange on Friday also showed 32 per cent increase in Profit before Tax (PBT) for the period to N103.2billion from N78.2billion reported in 2017.

With the increase in Profitability, the financial institution’s Return on Average Equity (ROAE) stood at 19 per cent with a Return on Asset of 2.1per cent in 2018.

The management thus proposed a final dividend of 25 Kobo per share bringing total dividend for the year to 50 Kobo per share for 2018 financial year.

For 2017 financial year, the management had paid shareholders final dividend of 40 kobo per share, in addition to 25 kobo interim dividend paid during the period.

Also from the Bank’s income statement, the Group gross earnings rose 15per cent to N528.7billion in 2018, compared to N459.1billion in 2017, with interest and non-interest income contributing 72per cent and 26per cent respectively.

The asset base of the Bank remained strong and diversified with growth of 21per cent in total assets to N4.95trillion in December 2018 from N4.10 trillion in December 2017. Loans and Advances totalled N2.14 trillion as at December 2018 from N2.06 trillion reported in 2017.

Customer deposits increased by 14per cent to N2.57trillion in 2018 from N2.25 trillion in 2017. Capital Adequacy (CAR) remained adequate at 20.8per cent, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation. On a full impact basis, CAR stood at 19.9per cent.

Similarly, Liquidity ratios of 50.9 per cent in 2018 from 47.2 per cent, remained well above Central Bank of Nigeria’s (CBN) 30 per cent requirements.

Commenting on the Bank’s performance during the period, Group Managing Director/CEO, Herbert Wigwe said,”2018 marked a significant year of progress for the Bank amid an unfavourable macro climate.

“We made solid progress throughout 2018 in line with our 2018-2022 five-year strategy, and we remain committed to the achieve-ment of our strategic imperatives going forward; as we continue to invest in our people and technology in order to improve operational efficiency and service touch points with earnings growth in 2019.”

According to him, the contribution of the Bank’s subsidiaries to Group profits grew 116per cent to N27.9billion, underlined by the effective implementation of overall strategy.

“In pursuit of our vision to be one of the leading Banks in Nigeria, we took accelerated strides in the last quarter of the year towards achieving our overall retail strategy.

“The merger with Diamond Bank will enable us to fully entrench ourselves in the retail market with a view to lowering our funding cost. This transaction is anticipated to be completed by April 2019, resulting in the creation of an enlarged, efficient and digitally led tier 1 retail banking franchise.” he stated.

 

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