By Uzoma Akobundu
Access Bank customers are to receive 25 kobo interim dividend as the first post-merger books of the leading commercial bank in the first half of 2019 looks good.
Group Managing Director/CEO of Access Bank, Herbert Wigwe said, “Access Bank’s performance in the first half of the year reflects a sustainable business model coupled with effective execution as we make solid gains towards the achievement of our strategic goals.”
The Group’s audited H1 results released to the Nigerian Stock Exchange (NSE) on Thursday, September 5, 2019 showed Gross Earnings of N324.4 billion, up 28 per cent from N253.0 billion in the corresponding period of 2018.
The growth in gross earnings was driven by 46 per cent increase in interest income on the back of continued growth in the Bank’s core business and 22 per cent non-interest income underlined by strong recoveries.
The Bank delivered a Profit before Tax (PBT) of N74.1 billion, a 62 per cent increase from N45.8 billion recorded during the same period in 2018. Profit after Tax (PAT) grew by a similar margin from N39.6 billion in 2018 to N63.01 billion in H1 2019.
Similarly, the Bank posted 34 per cent growth in Operating Income to N202.3 billion from N151.4 billion in 2018. Total Asset was up 31 per cent at ₦6.48 trillion as at June 2019 in comparison to ₦4.95 trillion in December 2018.
Access Bank’s Capital Adequacy Ratio (CAR) remained solid at 20.8 per cent, well above the regulatory minimu
Following the release of the half year results, the Bank also declared an interim dividend of 25k to its shareholders.
Commenting further on the result Wigwe said: “Our focus on retail gained momentum during the period, as continued investments in our channels platform resulted in a 29 per cent contribution to gross fee and commission income, up 92 per cent frohttps://www.armadanews.com/wp-admin/media-upload.php?post_id=21815&type=image&TB_iframe=1m the corresponding period in 2018.
“The strong retail contribution demonstrates the effectiveness of our continued drive around low-cost deposits, on the back of an innovative digital platform. Asset quality improved as guided, to 6.4 per cent on the bank of a robust risk management approach.
“This is expected to trend into the future as we strive to hit and surpass the standard we had built in the industry prior to the merger. Similarly, liquidity ratio improved year on year to 49.7 per cent, reflecting deliberate steps to optimise our balance sheet in order to ensure the group’s liquidity position remains robust.”
“Going into the second half of the year, our focus is on consolidating momentum and driving access to financial inclusion through our various agency initiatives. Additionally, we will remain disciplined in our efforts to deliver enhanced shareholder value, as we continue to realise the synergies from our newly expanded franchise,” he added.