Access
Bank Plc has announced an impressive profit of N72 billion for the nine months
ended 30 September 2016 based on enhanced
business efficiency as a result of the effective execution of its long-term
strategy.
The Bank’s
Profit Before Tax (PBT) showed an increase of 19% from N60.4 billion recorded
during the same period in 2015. Profit After Tax (PAT) grew by similar margin
from N48.1 billion in 2015 to N57.1 billion in 2016.
Access
BankGroup’s unaudited nine-monthresults released to the Nigerian Stock Exchange
(NSE) on Friday also showed Gross Earnings of N274.5 billion, up 7% from N257.6
billion in the corresponding period of 2015. The growth in gross earnings was
driven by 17% increase in interest income on the back of continued growth in
the Bank’s core business.
Similarly,
the Bank posted 12% growth in operating income to N199.3 billion from N178.1
billion in 2015. Customer Deposits grew 25% to ₦2.10trillion from
₦1.68 trillion in December 2015.
Access
Bank’s Capital Adequacy Ratio (CAR) remained solid at 19%
as at September 2016, well above the regulatory minimum.
Commenting
on the result, Group Managing Director/CEO, Herbert Wigwe said, “Access Bank’s performance in the first three quarters of this year remained
strong and consistent, reflecting a stable business with the capacity to
deliver sustainable returns, particularly during a period underlined by
significant macro headwinds.” According to him, the Group maintained stable
asset quality, recording NPL and Cost of Risk Ratios (CRR) of 2.1% and 0.9%,
respectively.
“Our capital and liquidity position
remained adequately above regulatory levels, as we continued to implement a
disciplined capital plan, ensuring sufficient levels of profit retention to
support our growth. In addition to capital enhancement, the recently concluded
$300 million senior unsecured debt issue allows us optimise and enhance our
foreign currency funding capacity whilst strengthening our balance sheet,”
Wigwe added.
The
Bank’s asset quality ratios also improved as the
percentage of Non-Performing Loans (NPL) to total gross loans stood at 2.1%
compared to 1.7% in December 2015. The NPL
Coverage Ratio
remained strong at 209.5% in the period, compared with 216.4% as at December
2015.
Further
analysis of the result indicated that Cost
to Income Ratio (CIR) improved 190bps y/y to 57.7 % in the nine months
of 2016 on the back of strong income growth during the period. Total
Assetsstood at N3.39 trillion,
up 31% compared to N2.59
trillion in December 2015.
“We remain committed to our cost containment plan, as we strive to
balance operational efficiency with earnings growth in a constrained
environment.The Bank will remain resilient in the achievement of its strategic
imperatives; maximizing our strong market position and solid capital base,
while leveraging digital innovation to improve service touchpoints as we
sharpen our retail play with emphasis on cheaper funding sources,” Wigwe noted.
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