Access Bank Bolsters Profit 15.7% despite External Threats

Access Bank Bolsters Profit 15.7% despite External Threats

Access Bank Plc has reported a 14.7% year on year growth in gross earnings to ₦576.7 billion in its 9-month of financial year 2020 result from ₦502.8 billion.

Despite multiple economic threats that permeated the operating environment in 2020, lender grew both top and bottom line strongly.

Its third quarter of financial scorecard showed that lender’s earnings lift was supported by more than two-fold increase in non-interest income.

Non-interest income for ₦201.5 billion from ₦97.7 billion in the comparable period in 2019.

Profit after tax accelerated faster than topline growth at 15.7% to ₦102.3 billion in the 9M-2020 from ₦88.4 billion in the comparable year in 2019.

In Q3-2020, the lender reported a 2times quarter on quarter jump in earnings, lifted by a 29.7% rise in net interest income.

Highlight of the result indicated that net interest income rose by 29.7% quarter on quarter on higher interest income.

Followed an improved interest earnings assets, interest income jumped +12.0% quarter on quarter and interest cost savings decline 3.8%.

Lender’s non-interest income pulled back 4.9% quarter on quarter, as net trading losses of ₦50.7 billion as against a gain of ₦51.9 billion in Q2-2020 offset the impact of ₦78.9 billion in FX revaluation gains.

The bank has reported revaluation loss of ₦11.5 billion in Q2-2020 and there was a 77.6% growth in net fee income in Q3-2020.

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Operating expenses eased 13.6% in the Q3-2020 from Q2-2020 results, leading to a contraction in cost to income ratio to 54.7% from 70.1% in the prior quarter.

But, impairment charges rose more than two-fold to ₦17.8 billion, forcing a 40 basis points jump in cost of risk to 1.4%.

However, lender’s assets quality improved as non-performing loan ratio moderated further to 4.2% from 5.0% in the prior quarter

Its unaudited result showed that gross loans rose 2.5% funded by a 12.8% increase in customer deposits during the review quarter

Meanwhile, lender’s remained adequately finance with capital adequacy ratio (CAR) inched higher to 21.1%, above the 15.0% regulatory limit.

Access Bank Bolsters Profit 15.7% despite External Threats