Access Holdings Profit Grows by 83% to N458 Billion
Access Holdings Plc profit has increased by 82.8% year on year to N457.7 billion in 12 months, according to details from its financials. In its unaudited 9M-2024 financial statement, Access Plc pretax profit reached an all-time high level of N558.2 billion, which was +89.6% above N294.4 billion recorded in the equivalent period in 2023.
The surge in the group’s earnings growth was driven by higher income from interest earnings assets and lower costs of funds. The financial services interest payment to fund providers, however, increased along with impairment charges on credit losses and operating expenses.
Details from its financials showed that gross earnings increased by 118.2% year on year to settle at N3.346 trillion at the end of 9m-2024 from N1.533 trillion 12 months ago.
This surge was attributed to stronger net interest income and non-interest revenue, according to details from its financial scorecard. Interest income surged by 128.2% year on year to N2.398 trillion as banks repriced interest yielding assets after a series of monetary policy rate hikes.
Interest expenses or payment to providers of funds grew much faster, with negative impacts on margin. Interest expenses surged by 135.6% from N658.5 billion to N1.553 trillion in 12 months.
Net interest income still came stronger year on year, settling at N844. 8 billion, up by 116.7% year on year from N390 billion in the comparable period in 2023. Supporting the bank’s overall performance, non-interest revenue (NIR) rose by 95.4% year on year to N948.4 billion from N485.3 billion in the comparable period in 2023.
Access Holdings non-interest revenue was driven by net gains on financial instruments at fair value through profit or loss which jumped up by 71.1% to N296.37 billion. This came in addition to net gain on fair value hedge which rose by 84.9% to N167.59 billion.
The group also saw a spike of 122% in net fee and commission income amounted to N329.90 billion. Access Holdings operating expenses (OPEX) surged by 110% year on year from N519 billion to N10.90 trillion at the end of 9M-2024.
Breakdown showed that this was as a results a sizeable increase in regulatory fees, higher wages and salaries, AMCON surcharge surged by 63.1% as balance sheet size expanded and IT & e-business expenses climbed by 482.7%.
In the period, Access Holdings loan loss expenses also grew by 134.5% year on year to N114.9 billion from N61.8 billion as the bank’s asset quality plunged. #Access Holdings Profit Grows by 83% to N458 Billion Naira Suffers Big, CBN Goes Ballistic Against FX Whales
