With highly impressive Half-Year Group performance Access Bank ready to fly higher

With highly impressive Half-Year Group performance Access Bank ready to fly higher

 In spite of the  excruciating   environment in the country, Access Bank  plc. recorded a very strong performance in H1 2021, achieved through our unique business model that supports the corporate and retail value chains throughout the African continent and beyond.

This information is contained  in the Group Audited Results for the Half Year ended 30 June 2021, made available to the public  early in the month by the Managing Director/Chief Executive  Officer of the Bank, Dr. Herbert Wigwe.

With improving profitability, resilient capital position and a robust, diversified balance sheet, the Group is on track to deliver on its vision to be the World’s Most Respected African Bank.

The Group recorded an improvement in gross earnings by 14% y/y to ₦450.6billion (H1 2020: ₦396.8billion), while the profit before tax saw a significant increase of 31% y/y to ₦97.5bn (H1 2020: ₦74.3bn).

Despite the inflationary environment and increased regulatory costs, the bank’s Cost-to-Income Ratio stood at 60.1%, a 570-basis point reduction from 65.8% in H1 2020 just as the retail banking business continued to grow with a 24% y/y increase in gross earnings to ₦118.6bn (H1 2020: ₦95.8billion), driven by a 46% y/y increase in Interest Income and 37% y/y growth in revenue from the  channels and digital businesses.

 During the period, Access Bank cess  recorded progress in its  financial inclusion objective to bank 1 in every 2 Nigerians. We added 2,371,832 new customers as well as 16,428 new agents, creating more employment and providing convenience to our customers.

These strides in our retail business resulted in growth in savings deposits to ₦1.4trillion, a 4% growth from ₦1.3trillion in December 2020, and a Cost of Funds reduction to 2.9% (H1 2020: 3.7%).

The bank’s  push fordigital innovations to improve efficiency for our customers resulted in significant increase in our USSD transaction volume (+62% y/y) and our Mobile and Internet Banking transactions volume (+67% y/y).

Despite the challenging economic backdrop, we maintained strong asset quality with a stable NPL ratio of 4.3% (Dec. 2020 4.3%). We expanded our loan portfolio, supporting sectors with the highest impact on the economy, with good quality assets as reflected by the growth in our net loans and advances to ₦4.0trillion YTD (Dec 2020: ₦3.6trillion).

Furthermore, Access Bank  maintained robust capital and liquidity positions well above regulatory levels, with a Capital Adequacy Ratio of 21.3% and a liquidity ratio of 50.7%, positioning us to support our customers and execute our growth strategy.

 Wigwe said : “Over the last few months, we have successfully completed acquisitions in South Africa, Mozambique, and Zambia, emphasising our footprint in key markets around the globe.

“We will continue to grow its presence in geographies with significant growth potential, especially where they support our global customers.

 “As we become Africa’s Gateway to the World, we would also seek markets which support “our trade and payments aspirations and the African Free Trade Agreement.

“To further enhance our operating efficiency and ensure strong returns on invested capital, we will bring the best of our group assets, specifically our digital banking capabilities that support individuals and businesses, enhance financial inclusion, and deliver the benefits of a strong network effect across our enlarged Group.

“Throughout the pandemic, we have been able to demonstrate our ability and Willingness to support our customers, our communities, and our colleagues.

“As the outlook improves, and as business returns to a new normal, we will continue to support our communities in order to stimulate growth and create new opportunities.

To accomplish our vision to be the World’s Most Respected African Bank, we are working together across the Group on the back of our robust balance sheet, increased retail momentum and efficiency.

“Finally, I would like to thank our staff, shareholders, and other stakeholders as we could not have achieved these results without their dedication, commitment, and support.”

H1 2021 Result: Key Highlights

Gross earnings rose year-on-year (Y-o-Y) by +13.58% to N450.62bn in H1 2021 from N396.76bn in H1 2020.

Net interest income was up Y-o-Y by +58.52% to N200.07bn from N126.21bn in H1 2020

Non-interest income fell by -13% to N130.9bn

Net interest margin increased to 6.40% from 4.90% in H1 2020.

Profit before tax inched up by +31.21% to N97.49bn from N74.31bn in H1 2020

Basic earnings per share rose Y-o-Y by +43.35% to 248Kobo from 173kobo in H1 2020

Loans and advances to customers rose Y-o-Y by +79.16% to N3.58trn in H1 2021 from N1.99trn in H1 2020

Deposit from customers grew by +28.00% to N5.97trn from N4.67trn in H1 2020

Total assets inched up by +29.45% in H1 2021 to N10.05trn from N7.77trn in H1 2020

Shareholder’s fund was up +15.67% to N775bn in H1 2021 from N670bn in H1 2020

Return on average equity grew to 22.8% from 19.10% in H1 2020

The cost-to-income ratio fell to 60.10% from 65.8% in H1 2020

The capital adequacy ratio rose to 21.30% in H1 2021, above the regulatory minimum of 15%

The non-performing loans ratio of the group improved to 4.30% in H1 2021 from 4.4%.