Access Bank grows Half - Year revenue by 31%
Access Bank Plc has announced an increase of 31% in gross earnings in its half – year result released on the floor of Nigeria Stock Exchange yesterday. An analysis of the result showed that the Bank increased its gross earning from N49. 2 billion to N64.0 billion, which is an indication of increased market share and customers confidence in the bank’s operations. A further analysis of the half – year result showed an increase in operating profit of N16.0 billion to N21. 5 billion, an increase of 34% over last year’s figure
The Bank recorded an after tax loss of N11.8 billion following an exceptional provision for risk assets of N30.9 billion was made by the Bank in line with the recommendation of the Central Bank of Nigeria. Its capacity to absorb this provision in just 6 months of operations shows the robustness of its earnings and the strength of its business model.
The bank’s capital adequacy ratio of 25.3% is far above the 10% regulatory requirement for the industry and its strong liquidity underscored by its liquidity ratio of 33.5% are indicators of the Bank’s financial strength and ability to record a superior performance in the coming quarter.
Commenting on the result, the Group Chief Financial Officer, Mr. Seyi Kumapayi said, “Access Bank remains focused on building market share and leveraging its lean value chain driven business model to deliver quality service to our target market. We have continued to take the necessary actions to maintain strong capital adequacy ratios and grow our funding base and liquidity levels well beyond the prescribed regulatory minimum. The strength of our business model is evident given our 34% year on year growth in operating profits. Although our bottom line earnings for the 6 month reporting period have been significantly impacted by a N30.9billion exceptional provision resulting from the recently concluded joint CBN/NDIC special examination, we have since commenced the necessary recovery and remedial actions to regularize a significant portion of the classified loans. We are cautiously optimistic that we will record performance improvements over the next quarter.”