Access bank reports12% increase in profit to N125.9bn, proposes N0.55 final dividend
By Kayode Tokede
Despite a challenging economic and regulatory landscape, Access Bank Plc has announced profit before tax of N125.9billion in its audited results for full year ended December 31, 2020 from N111.93billion reported in 2019.
The management of Access Bank proposed a final dividend of N0.55, bring total dividend to N0.80 in 2020(interim dividend of N0.25 was paid in half year results for period ended June30, 2020).
The financial institution reported 15 per cent increase in gross earnings to N764.7billion for the financial year ended December 31, 2020 from the N666.75billion posted for the comparative period of 2019.
Access bank also posted anon-interest income of N275.5billion, a significant 112per cent y/y growth from 2019. This is despite the cost of operating its enlarged franchise.
According to Group Managing Director and CEO of Access Bank , Herbert Wigwe the institution’s resilient performance “is testament to the effectiveness of our strategy and capacity to generate sustainable revenue.
“The strategic actions that the Bank has taken over the past 12 months evidence a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation.
“In 2020, Access Bank proudly opened its doors for business in Kenya and Mozambique, further increasing our footprints across the African Continent.
“Access Bank Zambia also concluded the acquisition of Cavmont Bank Limited in January 2021 and the Group recently announced the approval by relevant regulatory authorities for the acquisition of Grobank Limited, creating an inroad into the South African market in realization of the Group’s strategic ambitions.
In view of the opportunities that exist in the market, we will be transitioning to a HoldCo structure.
“The Bank has received the Approval-In-Principle from the Central Bank of Nigeria for the restructuring and the HoldCo will consist of 4 subsidiaries in order to tap into the market opportunities that are available in the consumer lending market, electronic payments industry and retail insurance market.
“Going into the fourth year of our 5-year cyclical strategy, our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner,” Wigwe said.
Access Bank recorded a consistent growth in its retail banking business, reporting a 5.8million growth in customer sign-on during the year through our financial inclusion efforts.
“This increase in customer base led to a retail revenue of N177.2billion, a 64.4per cent increase from its 2019 figures of N107.8billion.
“The Bank’s customer deposits also grew by 31per cent to N5.59trillion in Dec 2020 with savings account deposits standing at N1.31trillion.
Similarly, net loans and advances grew by 18per cent to N3.61trillion in comparison to its FY 2019 figures of N3.06trillion.
As the Bank intensified recovery efforts, undertook significant write off and leveraged its robust risk management practices, its asset quality improved to 4.3per cent compared to its 2019 report of 5.8per cent and this is expected to continue to trend downwards as it strives to surpass the standard it had built in the industry prior to the merger with Diamond Bank.
