Access Bank recorded 58 pct profit growth in FY 2018
Access Bank Plc has released its audited financial results for the full year (FY) ended December 31, 2018 showing an increase of 58% in Profit after Tax (PAT) to N95.0 billion from N60.1 billion in the corresponding period of 2017.
The Bank’s audited results which was released to The Nigerian Stock Exchange on Friday also showed that Gross Earnings rose 15% to ₦528.7 billion in FY 2018, compared to ₦459.1 billion in 2017, with interest and non-interest income contributing 72% and 26% respectively. Profit before Tax (PBT) for the period was ₦103.2 billion, showing 32% growth from ₦78.2 billion in 2017 while Return on Average Equity (ROAE) stood at 19.0% with a Return on Asset of 2.1% in FY 2018. The Bank has proposed a a final dividend of 25 Kobo per share bringing total dividend for the year to 50 Kobo per share.
The asset base of the Bank remained strong and diversified with growth of 21% YTD in total assets to ₦4.95 trillion in December 2018 from ₦4.10 trillion in December 2017. Loans and Advances totaled ₦2.14 trillion as at December 2018 (December 2017: ₦2.06 trillion). Customer deposits increased by 14% to ₦2.57 trillion in December 2018, from ₦2.25 trillion in December 2017. Capital Adequacy (CAR) remained adequate at 20.8%, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation. On a full impact basis, CAR stood at 19.9%. Similarly, Liquidity ratios of 50.9% (December 2017: 47.2%), remained well above regulatory requirements.
Commenting on the Bank’s performance during the period, Group Managing Director/CEO, Herbert Wigwe said, “2018 marked a significant year of progress for the Bank amidst an unfavourable macro climate. We made solid progress throughout 2018 in line with our 2018-2022 five-year strategy, and we remain committed to the achievement of our strategic imperatives going forward; as we continue to invest in our people and technology in order to improve operational efficiency and service touch points with earnings growth in 2019.”
According to him, the contribution of the Bank’s subsidiaries to Group profits grew 116% to ₦27.9 billion, underlined by the effective implementation of overall strategy.
“In pursuit of our vision to be one of the leading Banks in Nigeria, we took accelerated strides in the last quarter of the year towards achieving our overall retail strategy. The merger with Diamond Bank will enable us to fully entrench ourselves in the retail market with a view to lowering our funding cost. This transaction is anticipated to be completed by April 2019, resulting in the creation of an enlarged, efficient and digitally led tier 1 retail banking franchise” he stated.
ABOUT ACCESS BANK
Access Bank is a full service commercial bank operating through branches and service outlets located in major centers primarily across Nigeria and sub-Saharan Africa, as well as the United Kingdom (extension to United Arab Emirates (Dubai)), with representative offices in China, Lebanon, and India. The Group provides a wide range of banking and other financial services to over 10 million customers from 402 branches and service centers.
Listed on the Nigerian Stock Exchange in 1998, the Bank serves its various markets through four business segments: Personal, Business, Commercial and Corporate & Investment Banking. The Bank has over 830,000 shareholders including several Nigerian and International Institutional Investors and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last fifteen years ranking amongst Africa’s top 20 banks by total assets and capital since 2017.
As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant.