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Access Bank records 58% profit growth as net profit peaks at N9bn

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.FMO arranges $162.5m loan to the Bank

One of the top brands in Nigeria’s banking industry, Access Bank Plc have continued to draw global attention as the bank records positive growth indexes on all fronts.

The latest was the release of Access Bank’s audited financial results for the full year ended December 31, 2018 which showed an increase of 58% in Profit after Tax (PAT) to N95.0 billion from N60.1 billion in the corresponding period of 2017.

The Bank’s audited result which was released to The Nigerian Stock Exchange at the weekend also showed that Gross Earnings rose 15% to ₦528.7 billion in FY 2018, compared to ₦459.1 billion in 2017, with interest and non-interest income contributing 72 per cent and 26% respectively. Profit before Tax (PBT) for the period was ₦103.2 billion, showing 32% growth from ₦78.2 billion in 2017 while Return on Average Equity (ROAE) stood at 19.0% with a Return on Asset of 2.1% in FY 2018. The Bank has proposed a a final dividend of 25 Kobo per share bringing total dividend for the year to 50 Kobo per share.

The asset base of the Bank remained strong and diversified with growth of 21% YTD in total assets to ₦4.95 trillion in December 2018 from ₦4.10 trillion in December 2017. Loans and Advances totaled ₦2.14 trillion as at December 2018 (December 2017: ₦2.06 trillion). Customer deposits increased by 14% to ₦2.57 trillion in December 2018, from ₦2.25 trillion in December 2017. Capital Adequacy (CAR) remained adequate at 20.8%, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation. On a full impact basis, CAR stood at 19.9%. Similarly, Liquidity ratios of 50.9 per cent (December 2017: 47.2 per cent), remained well above regulatory requirements.

The release of the bank’s 2018 full year results came on the heels of Access Bank Plc’s confirmation of its signing of what it described as subordinated syndicated loan agreement totaling $ 162.5 million.

The facility, the bank said was arranged by FMO, the Dutch development bank, and is provided together with BIO (Belgian Investment Company for Developing Countries SA/NV), Blue Orchard Microfinance Fund, CDC Group plc, DEG (Deutsche Investitions- und Entwicklungsgesellschaft mbH), Finnfund (Finnish Fund for Industrial Cooperation Ltd), Oikocredit (Ecumenical Development Cooperative Society U.A.) and European Financing Partners S.A, funded by the European Investment Bank acting on behalf of the European Community and Norfund (Norwegian Investment Fund for Developing Countries). FMO acted as the Mandated Lead Arranger and will be the Facility Agent.

The facility it was gathered will qualify as Tier-II capital, which will enable Access Bank to roll out its 5-year strategy of becoming Africa’s gateway to the world.

Part of that strategy is also to deepen the footprint in the retail segment as well as increasingly support local Micro, Small, and Medium-size Enterprises, thereby supporting job creation in the Nigerian economy.

Commenting on the Bank’s 2018 full year financial performance, Group Managing Director/CEO, Herbert Wigwe said, “2018 marked a significant year of progress for the Bank amidst 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 achievement 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 116% to ₦27.9 billion, 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.

Access Bank is a full service commercial bank operating through branches and service outlets located in major centers primarily across Nigeria and sub-Saharan Africa, as well as the United Kingdom (extension to United Arab Emirates (Dubai)), with representative offices in China, Lebanon, and India. The Group provides a wide range of banking and other financial services to over 10 million customers from 402 branches and service centers.

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