Access Holdings Plc, one of Nigeria’s leading financial institutions, has reported an impressive 56.6% growth in interest income for the first quarter of 2023.
According to findings by Investors King, the lender’s interest income increased to N250.98 billion in March 2023 from N160.317 billion in the same period last year. This growth was driven by a 62.63% rise in loans and advances to customers, which was N149.1 billion in the period under review.
The increase in interest income was also attributed to the growth in investment securities, which rose by 37.6% to N87.1 billion in March 2023 from N63.3 billion in the previous year.
Access Holdings Plc’s financial statement noted that the group experienced an increase in interest income on investment securities as a result of an increase in the volume and improved yield on securities during the period.
However, the lender’s interest expense also rose by 84% to N158.9 billion in March 2023, from N86.3 billion recorded in the same quarter last year. The increase in interest expenses was due to a rise in customer deposits during the period, which spiked by 82.34% to N98.1 billion from N53.8 billion recorded in the same quarter of the previous year.
Despite the increase in interest expenses, Access Holdings Plc recorded a profit before tax of N81.6 billion in the period under review, compared to N65.6 billion recorded in the same quarter of the previous year. The profit for the period also recorded a 24% increase to N71.7 billion from N57.8 billion recorded in the same quarter of last year.
Access Holdings Plc’s effective resource utilization was a major factor in generating higher profits, given successive increases in interest rates by the country’s apex bank. The lender leveraged its shareholders’ resources to drive growth in loans and advances to customers and investment securities, leading to a significant increase in interest income. However, the rise in customer deposits also contributed to the increase in interest expenses.
