Categories: Finance

Access Bank Thrives Despite COVID-19, Declares N102.300 Billion Profit

Access Bank, Nigeria’s largest bank by customer base, reported an impressive N102.300 billion profit after tax for the nine months ended September 2020.

In the bank’s unaudited financial statements, profit after tax rose by 16 percent when compared to the N88.4 billion recorded in the first nine months of 2019.

Access Bank also grew profit before tax by 16 percent to N116.6 billion, up from N100.8 billion achieved in the corresponding period of 2019. The lender grew gross earnings by 15 percent to N592.8 billion from the N513.7 billion realised in the same period of 2019.

While interest and non-interest income appreciated by 63 percent and 37 percent, respectively.

The bank’s customer deposits expanded by 24 percent during the period under review to N5.26 trillion with strong positive savings account deposits of N1.23 trillion.

Accordingly, Access Bank net loans and advances appreciated by 15 percent to N3.53 trillion.

Speaking on the strong performance, Mr. Herbert Wigwe, the Group Managing Director/Chief Executive Officer, Access Bank, said: “We recorded consistent growth in our retail banking business as evidenced by the growth in customer sign-on by 3.2 million customers year-to-date via our financial inclusion strides. Transaction volume and value also grew based on our deliberate investments in digital banking.

“Asset quality continued to improve as guided to 4.2 per cent, on the back of impairment charges, strong recoveries and a robust risk management approach. This is expected to trend downwards as we strive to surpass the standard we had built in the industry prior to the merger with Diamond Bank.

“We have continued to grow our African footprint in a capital-efficient and profitable manner, in furtherance of our vision to be the World’s most respected African Bank and Africa’s payment gateway. Our African expansion strategy is two-pronged; consolidating in markets we already exist (Mozambique and Zambia) to become major players and entering into new key African markets and trade corridors (Guinea, Kenya and South Africa).”

He explained that the bank has received the Central Bank of Nigeria’s approval-in-principle to restructure to a holding company. This, he said will further accelerate the bank’s objectives around diversification and improved operational efficiencies.

The year has been challenging for all and I would like to appreciate our customers for their unwavering loyalty in these uncertain times. Recognising the adverse effects of the recent events on our customers, we remain committed to delivering superior value to our customers and providing innovative solutions for the markets and communities we serve.

“Going into the last quarter of the year, our focus remains on consolidating our retail momentum and expanding our African footprint. The next two years will see updates with regards to the realisation of synergies and actualisation of the bank’s strategic intent. Finally, I would like to thank our people and shareholders as we could not have achieved these feats without their dedication, commitment and support,” he said.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Samed Olukoya

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