Access Bank Profit Drops to N40.92bn in Q1 2020

• Access Bank Profit Drops to N40.92bn in Q1 2020

Access Bank Plc grew profit after tax to N40.92 billion in the first quarter of 2020.

This was below the N41.14 billion reported in the same period of 2019.

In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the bank’s gross earnings rose by 31.85 percent from N160.12 billion posted in the corresponding period of 2019 to N211.12 billion in the first quarter of 2020.

Net interest increased from N56.838 billion to N72.212 billion while non-fee and commission income improved to N22.998 billion, up from N13.068 billion. The lender’s impairment charges jumped from N3.375 billion to N8.582 billion.

Accordingly, operating expenses expanded from N55.14 billion filed in the first quarter of 2019 to N90.31 billion in the period under review. Profit before tax rose by 2.64 percent from N45.10 billion achieved in the first quarter of 2019 to N46.29 billion in Q1 2020.

Profit after tax, however, declined from N41.14 billion in Q1 2019 to settle at N40.92 billion in the period under review. Further break down showed that net loans and advances surged by 2.61 percent from N3.06 trillion in full-year (FY) ended 2019 to N3.14 trillion.

The bank grew customer deposits by 4.7 per cent to N4.45 trillion from N4.25 trillion in 2019. Also, total assets inched higher by 1.87 per cent to N7.28 trillion from N7.14 trillion in 2019.

Commenting on the performance, Mr. Herbert Wigwe, the Managing Director/Chief Executive Officer, Access Bank Plc, said: “Our resolve is to ensure that our customers have best in speed, service and security. We projected merger synergies of N153.9 billion (cost and revenue) over three years. Thus far, we have recorded synergies totalling N42.8 million in nine months, of which N28.8 million is recoveries.”

“In 2020, we expect to realise significant cost synergies, which will substantially cut down our cost and boost profitability. Being a systemically important Nigerian bank, we are aware that sustainable returns can only come from a sustainable and resilient business model. As such, our intent to embed resilience at the core of our financing activity is further strengthened, as we journey together to building a bank that is more than banking,” Wigwe said.