…proposes N0.25 interim dividend.
Access Bank announces its audited results for the half year ended June 30, 2016 with profit before tax and profit after tax gaining 28 per cent and 26 per cent respectively.
The bank’s Profit Before Tax (PBT) up by 28 per cent to ₦50.0 billion in the period from ₦39.1 billion in H1 2015 while Profit After Tax (PAT) for the half year stood at ₦39.4 billion, compared to ₦31.3 billion in H1 2015.
The management and board of Access proposed an interim dividend of N0.25 kobo per share.
Within six month, Access bank gross earnings rose by three per cent to ₦174.0 billion in H1 2016 from ₦168.3 billion in H1 2015.
Interest Income up 14 per cent y/y to ₦112.3 billion in H1 2016 from ₦98.9 billion in H1 2015; benefitting from steady income growth from the Bank’s core business and a 14 per cent y/y reduction in interest expense.
Strong growth in fees and commission incomes contributed to Non-Interest Income of ₦61.7 billion from ₦69.4 billion in H1 2015; largely offsetting the decline in trading income.
Operating Income grew 11per cent to ₦130.2 billion in H1 2016 from ₦117.6 billion in the corresponding period of 2015
Group Managing Director/Chief Executive Officer of Access Bank Plc, Herbert Wigwe, in a statement, said: “Access Bank’s performance continues to be resilient in the face of a challenging macro-economic environment, which has been further exacerbated by double-digit inflation, amidst an untimely devaluation. Despite these macro uncertainties, we delivered gross earnings of ₦174 billion, while pre-tax profits grew 28 per cent to ₦50 billion in the period.
“The results underscore our continued ability to grow sustainably whilst effectively adapting to a challenging operating landscape.
“The prevalent macro-economic conditions put a strain on business performance across the industry, with increased concerns about asset quality deterioration. Despite these challenges, the Bank’s asset quality remained stable, as non-performing loans remained below industry average, in line with our guidance. Our capital and liquidity levels were also sustained above regulatory limits.
“During the period, we grew our retail market share, leveraging innovation and technology to create lifestyle products and enhance customer experience. This growth has led to significant increase in our transaction volumes and fee-related income. In addition, our cost of funds dropped by 170 basis points y/y reduction, reflecting the increase in our low cost funding base.
“Notwithstanding the high inflation and the impact of the currency devaluation on cost, operating cost remained stable owing to our cost management initiatives. Optimising operational efficiency will remain an imperative for the second half of the year, as we continue to see the benefits of our cost initiatives intensify over the next few months.
“We believe that macro conditions will remain challenging. Nonetheless, our priority in the coming months will be to strengthen our position in the industry; increasing focus on risk and operational efficiency, with customer-centricity at the heart of our strategy.”
From Access Bank balance sheet position, loans and Advances totaled ₦1.82 trillion in H1 2016, up 29 per cent, from ₦1.41 trillion in December 2015, with the devaluation accounting for 16per cent of loan growth in the period. Core loan growth was 4.5per cent, which is in line with our guidance for the year. Total Assets of 3.27 trillion, up 26per cent compared to ₦2.59 trillion in December 2015
Furthermore, Customer Deposits grew 17 per cent to ₦1.97 trillion from ₦1.68 trillion in December 2015 while the Bank has a stable capital position as Capital Adequacy Ratio (CAR) that stood at 19.6 per cent as at June 2016, well above the 15 per cent CBN requirement.
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