Access Bank declares 51.13 per cent increase in profit to 160bn
Access Bank Plc declared at the end of the week 2021 full-year financial result, as it recorded a profit of N160 billion in the year. This reflects a 51.13 per cent increase year-on-year (y-o-y).
The bank also reported earnings per share of N4.58, a 52.16 per cent growth from the N3.01 reported a year earlier in 2020. Access Bank Plc has grown its profits by 167 per cent in 4 years since hitting N60 billion in 2017 with the profit now touching roughly N160 billion.
The statement revealed that in 2021 Financial Year (FY), its Net interest income grew by 14.64 per cent from N262.95 billion to N301.46 billion within same period under review.
Access Bank’s profit performance is on the back of all margin growth as income from interest, trading income and fees and commission income all appreciated year on year.
The Nigerian Lender earned N601.70 billion, from its lending business as Interest income grew by 22.99 per cent from N489.22 billion.
Despite a 32.3 per cent spike in loan losses, net interest income after impairments still appreciated by 9.09 per cent to stand at N218.25 billion.
Access Bank, however, grew its income from commission and fees rising 36.40 per cent to N159.18 billion year on year and also generating a total of N166.10 billion in trading income on securities representing an impressive 423.35 per cent increase year on year.
However, net gain on financial instruments depleted by 64.66 per cent to be recorded as N42.46 billion, on the back of a N136 billion loss on non-hedging derivatives. The bank’s e-banking income raked in N66.28 billion, representing a 18 per cent spike from N56.09 billion in 2020.
This suggests that the bank has improved in its utilisation of the e-banking channels in the delivery of financial services to its customers.
In addition, the group also grew its deposits from customers by a whopping 24.47 per cent to N6.95 trillion while its total assets are now N11.73 trillion, more than twice the bank’s total assets in 2018. Net assets rose 38.03 per cent to N1.03 trillion.
Access Bank Plc last traded at N10.40 per share and its market capitalisation stands at N369.67 billion as of Thursday, March 17, 2022. Year-to-date performance shows that the share price of the company has appreciated by 11.83 per cent.
The bank’s Board of Directors have proposed a final dividend per share of N0.70 per share, to be paid on each of the 35,545,225,622 issued ordinary shares and payable to shareholders on the register of shareholding at the closure date.
The company had earlier paid an interim dividend of N0.30 kobo in September 2021, hence bringing the total dividend for the financial year to N1.00 kobo.
The proposed dividend will be subsequently subjected to withholding tax at the time of payment.
Based on its current share price, Access Bank Plc’s dividend yield is about 9.62 per cent.
