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Finance

Access Bank Realises N61bn in H1 2020, Declares 25 Kobo Dividend

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Access Bank Generates N61 Billion in H1 2020

Access Bank Plc reported interest income of N211.991 billion for the period ended June 2020, 2020, against the N226.125 billion recorded in the same period of 2019.

The bank disclosed in the financial statements released for on Thursday through the Nigerian Stock Exchange.

Access bank’s interest income on financial assets declined from N46.772 billion achieved in the corresponding period of 2019 to N34.732 billion in the period under review.

Interest expense rose from N117.750 billion recorded in the first half (H1) of 2019 to N120.515 billion in H1 2020.

Similarly, net impairment charge expanded from N4.879 billion in H1 2019 to N16.466 billion in the first half of 2020. Also, net interest income stood at N126.207 billion, below N155.146 billion posted in the same period of 2019.

Therefore, net interest income after impairment charges declined from N150.266 billion filed in H1 2019 to N109.742 billion in the period under review.

The lender’s net fee and commission income rose from N37.529 billion in H1 2019 to N40.592 billion. Largely due to the increase in fee and commission income from N41.858 billion in the corresponding period of 2019 to N51.775 billion.

Profit before tax grew from N72.965 billion in H1 2019 to N74.306 billion in H1 2020.

Profit after tax declined slightly from N61.874 billion achieved in H1 2019 to N61.034 billion due to the surged in income tax paid by the bank from N11.091 billion in H1 2019 to N13.271 billion in H1 2020.

The bank declared an interim dividend of 25 kobo for every share of 50 kobo. The bank explained that only shareholders whose names appear in the Register of Members as at the close of business on Thursday, 17th day of September 2020.

Access Bank said dividends will be paid electronically to shareholders whose names appear on the Register of Members as at Thursday, September 17, 2020 on Monday, September 28, 2020.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Finance

CBN Maintains 11.5 Percent Monetary Policy Rate, Leaves Other Ratios Unchanged

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The Central Bank of Nigeria led Monetary Policy Committee (MPC) has left the interest rate unchanged at 11.5 percent to further stimulate activities in the real sector of the economy.

Godwin Emefiele, the Governor of Central Bank of Nigeria disclosed this at the end of the MPC meeting on Tuesday in Abuja.

He said other parameters, the Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor, were left unchanged.

According to the Governor, the committee voted unanimously to maintain the current monetary policy and attributed the surge in inflation to structural policies, the increase in pump price and the recent #EndSARS protest.

Highlights of CBN-MPC’s  Decision

  • MPR was kept at 11.50%
  • The asymmetric corridor of +100/-700 basis points around the MPR
  • CRR was retained at 27.5%
  • Liquid Ratio was also kept at 30%

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Finance

Unity Bank Grew Gross Earnings by 8 Percent to N34 Billion in Nine Months

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Unity Bank Plc grew gross earnings by 8 percent despite COVID-19 and other headwinds that hurt the profitability of most businesses in the first nine months of the year.

A break down of the bank’s unaudited financial results for the period showed gross earnings rose by 8 percent to N33.91 billion for the nine months ended September 30, 2020, up from N31.26 billion posted in the same period of last year.

The lender’s total assets rose by 44 percent from N293.05 billion in the corresponding period of 2019 to N420.87 billion in the period under review.

Unity Bank grew profit before tax from N1.61 billion in 2019 to N1.71 billion in the period under review, while profit after tax expanded from N1.48 billion in the corresponding period to N1.57 billion in 2020.

Customers’ deposits stood at N332.36 billion during the period under review, up from N257.69 billion posted in 2019.

Commenting on the performance, Mrs. Tomi Somefun, the Managing Director/Chief Executive Officer, Unity Bank Plc, expressed delight at the strong growth recorded across the bank’s balance sheet, especially from both the liability and assets side of the business and across key indices.

She said, “even as the bank continues to innovate in its e-business product bouquet to target and support value chain business with robust technology and thus diversify its earnings base.”

Somefun said, “One of the areas that will define our strategic direction going forward is investment in alternative channels, leveraging further deployment of resources in technology.

“COVID-19 gave us a chance to test the integrity and scalability of our technology, the IT infrastructure, and the electronic banking channels, and provided us an opportunity to see where we needed to improve and strengthen, knowing that the future of sustainable banking business is in alternative channels.”

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Financial Sector Grew by 6.8 Percent in the Third Quarter

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The finance and insurance sector that comprises of both the financial institutions and insurance subsectors grew by 5.91 percent year-on-year in nominal terms in the third quarter (Q3).

According to the National Bureau of Statistics (NBS) latest report, the financial institutions’ subsector accounted for 88.89 percent of the sector in real terms in the quarter under review while the insurance subsector contributed the remaining 11.11 percent.

During the third quarter of 2020, the financial institutions’ subsector grew by 6.8 percent in Q3 2020 from 28.41 percent in Q2 2020 and 0.61 percent in Q3 2019 despite COVID-19 and a tough operating environment. The insurance subsector, however, contracted by -18.67 percent in Q3 2020 from -29.53 percent in Q2 2020 and 3.96 percent in Q3 2019.

On a quarterly basis, the sector declined by 24.76 percent.

In terms of contribution to GDP, the finance and insurance sector contributed 2.46 percent in Q3 2020, higher than the 2.40 percent it represented a year ago and lower than the contribution of 3.76 percent achieved in the previous quarter.

The economy contracted by 3.62 percent in the third quarter following a 6.10 percent decline posted in the second quarter. Nigeria is officially in the second economic recession in four years.

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