Home BusinessBanking Nigeria: Access Bank Grows Profit By 16% to N102 Billion in Nine Months

Nigeria: Access Bank Grows Profit By 16% to N102 Billion in Nine Months

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Access Bank Plc’s unaudited results for the nine months ended September 30, 2020, has shown that the bank delivered strong top line figures despite the challenging landscape occasioned by COVID-19 as it recorded a 16 per cent growth in its profit after tax (PAT) to N102.3 billion, compared with the N88.4 billion recorded in the first nine months of 2019.

The results released on the Nigerian Stock Exchange (NSE) yesterday also showed that its profit before tax in the period under review climbed by 16 per cent to N116.6 billion.

Its gross earnings rose 15 per cent year-on-year to N592.8 billion at the end of September, higher than the N513.7 billion realised same period in 2019. Interest and non-interest income contributed 63 per cent and 37 per cent respectively to its earnings.

Access Bank’s customer deposits also grew by 24 per cent in the period under review to N5.26 trillion with strong savings account deposits of N1.23 trillion. Similarly, net loans and advances grew by 15 per cent to N3.53 trillion.

In addition, the bank maintained a robust capital and liquidity positions of 21.1 per cent and 48 per cent respectively, well above regulatory levels.

Commenting on the results, the Group Managing Director/Chief Executive Officer, Access Bank, Mr. Herbert Wigwe, 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).”

In addition, he said the bank recently received the Central Bank of Nigeria’s Approval-In-Principle for a holding company structure, which will enable it to further accelerate its objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.