Access Bank Reports 59% Increase in Profit for H1, 2019

• Access Bank Reports 59% Increase in Profit for H1, 2019

Access Bank, Nigeria’s largest retail bank by customer base, grew profit after tax by 59.1 percent in the first half of the year.

According to the financial results released through the Nigerian Stock Exchange on Monday, profit after tax rose by N23.4 billion or 59.1 percent from N39.6 billion achieved during the same period of 2018 to N63.01 billion.

While profit before tax grew by 62 percent to N74.1 billion, up from N45.8 billion recorded a year ago.

The lender grew gross earnings by 28 percent from N253 billion in H1, 2018 to N324.4 billion in H1, 2019.

It attributed the growth to a 46 percent increase in interest income and a 22 percent surge in non-interest income.

Operating income rose from N151.4 billion filed in the first half of 2018 to N202.3 billion in the first half of 2019.

The bank total assets climbed by 31 percent to N6.48 trillion, up from the N4.95 trillion recorded in December 2018.

The lender’s capital adequacy ratio stood at 20.8 percent during the period under review, well above the regulatory minimum.

Speaking on the results, Herbert Wigwe, the Group Managing Director/Chief Executive Officer, said: “Access Bank’s performance in the first half of the year reflects a sustainable business model coupled with effective execution as we make solid gains towards the achievement of our strategic goals.

“Our focus on retail gained momentum during the period, as continued investments in our channels platform resulted in a 29 per cent contribution to gross fee and commission income, up 92 per cent from the corresponding period in 2018. The strong retail contribution demonstrates the effectiveness of our continued drive around low-cost deposits, on the back of an innovative digital platform.”

He added, “Asset quality improved as guided, to 6.4 per cent on the bank of a robust risk management approach. This is expected to trend into the future as we strive to hit and surpass the standard we had built in the industry prior to the merger. Similarly, liquidity ratio improved year on year to 49.7 per cent, reflecting deliberate steps to optimise our balance sheet in order to ensure the group’s liquidity position remains robust.

“Going into the second half of the year, our focus is on consolidating momentum and driving access to financial inclusion through our various agency initiatives. Additionally, we will remain disciplined in our efforts to deliver enhanced shareholder value, as we continue to realise the synergies from our newly expanded franchise.”