By Kayode Tokede
Access bank plc on Thursday announced 55 per cent increase in profit after tax to N41.3billion in its nine months unaudited results to the Nigerian Stock Exchange (NSE).
The results showed that the financial institution reported N26.56 billion in prior nine months unaudited
Access bank results showed that profit before tax also grew by 52 per cent to N42.32 billion in nine months of 2020 from N27.8 billion reported in nine months of 2019.
Our correspondent gathered that 227.4 per cent increase in net foreign exchange gain to N78.86 billion in nine months of 2020 from N24.09 billion in nine months of 2019 contributed to Access bank profits in the period under review.
The GMD/CEO, Access Bank, Herbert Wigwe in a statement said, “Access Bank delivered strong top- line figures despite a challenging and fast-changing macro and banking landscape, occasioned by the COVID-19 Pandemic and the consequent decline in oil price.
This is an attestation to the effective execution of our strategies and strong risk management culture. The Group recorded gross earnings of N592.8billion (+15 per cent y/y), on the back of a 100 per cent y/y growth in non-interest income to N 217.5bn, but stressing the effectiveness of our strategy and capacity to generate sustainable revenue.
“We contined to grow our transaction banking income through the optimisation of our channels and electronic banking platforms (+105per cent y/y), notwithstanding the reduction in transaction charges following the revised guide to bank charges in December 2019.
“Customer deposits also grew by 24 per cent YTD to N5.26 trillion in Sep’ 2020 with a strong savings account deposits of N1.23trillion. Similarly, net loans and advances grew by 15per cent to N3.53trillion.We maintained a robust capital and liquidity positions of 21.1 per cent and 48.0 per cent respectively, well above regulatory levels.
“We recorded consistent growth in our retail banking business, as evidenced by the growth in customer sign-on by 3.2million customers YTD via our financial inclusion strides. Transaction volume and value also grew based on our deliberate investments in digital banking .
Asset quality continued to improve as guided to 4.2 per cent, on the back of impairment charges, strong recoveries and a robust risk management approach. This is expected to trend downwards as we strive to surpass the standard we had built in the industry prior to the merger with Diamond Bank.
“We have continued to grow our African footprint in a capital-efficient and profitable manner, in furtherance of our vision to be the World’s most respected African Bank and Africa’s payment gateway. Our African expansion strategy is two-pronged; consolidating in markets we already exist (Mozambique and Zambia) to become major players, and entering into new key African markets and trade corridors (Guinea, Kenya and South Africa).
“In addition, we have received the Central Bank of Nigeria’s Approval-In-Principle for a holding company (HoldCo) structure which will enable us further accelerate our objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance. The year has been challenging for all and I would like to appreciate our customers for their unwavering loyalty in these uncertain times. Recognizing the adverse effects of the recent events on our customers, we remain committed to delivering superior value to our customers and providing innovative solutions for the markets and communities we serve.
“Going into the last quarter of the year, our focus remains on consolidating our retail momentum and expanding our African footprint.The next two years will see updates with regards the realization of synergies and actualization of the Bank’s strategic intent. Finally, I would like to thank our people and shareholders as we could not have achieved these feats without their dedication, commitment and support.”