Access Holding’s revenue rises 43% to N1.4trn in 2022
By Onome Amuge
Access Holdings Plc posted a record revenue of N1.4 trillion for the year ended December 31,2022, as its gross earnings appreciated 43 per cent year-on-year, surpassing N971.9 billion recorded in the corresponding period of 2021.
The holding company’s consolidated and separate full year 2022 financial results showed strong growth across revenue lines, despite the strong macroeconomic headwinds locally and internationally, driven by the dividends of organic and inorganic activities across the ecosystem.
The financials showed a pre tax profit of N167.7 billion, a five per cent year-on-year decline against N176.6 billion registered in 2021. Net profit after tax stood at N152.20 billion for the 2022 full year, five per cent below N160.22 billion recorded in the 2021 full year. The decline in profits before tax and profits after tax was attributed to huge write downs from the Ghana sovereign debt crisis, as well as decrease in net foreign exchange gain and other operating income.
Overall, Interest Income was up 37 per cent y/y to N827 billion, underpinned by a strong loan book growth despite the high inflationary environment. On a similar note, net loans and advances to customers advanced by 25 per cent across the banking group, with a deliberate focus on credit disbursement to critical segments and growth sectors of the economy.
Notably, the company saw good growth across the subsidiaries, particularly in the UK, which appreciated by 36 per cent to N1.1 trillion under the period in review.
Access Holdings Plc also disclosed that it ended the year with over 58 million customers across the extensive network of subsidiaries and business verticals. The company’s asset base grew to N15.0 trillion, customer deposits climbed to N9.25 trillion, with Current Account and Savings Account (CASA) mix up by five per cent, to 63 per cent. This,the company explained, is as a result of leveraging innovation, digital technology and financial inclusion to mobilize sustainable low-cost deposits.
Highlighting other accomplishments in 2022, Access Holdings Plc noted that in the first half of the year,it completed the divestment from Pensions Custodian business and acquired significant shareholding in First Guarantee Pensions Ltd & Sigma Pensions Ltd to form Access Pensions Ltd.
Consequently, this combination resulted in the creation of the 4th largest Pension Fund Administrator (PFA) in Nigeria, with Asset under Management (AUM) of N0.9 trillion, putting the group clearly in the league of strategic players in the pensions industry.
The parent company of Access bank also disclosed that its payment business went live with the Switching business in the third quarter of 2022, noting that the other areas of the business will become fully operational from the second quarter of 2023.
Meanwhile, the holding company said it has set aside N103.1 billion as impairment loss in recognition of the economic loss impact of Ghana’s sovereign debt crisis, comprising domestic debt and Eurobonds. It also noted that the country’s sovereign debts in its books amounts to N348.1 billion as of December 2022.
Access Holdings maintained that its overall business outlook for 2023 remains strong as it commences its new 5-year strategic journey which aims to make the firm one of the top five financial services organisations in Africa by 2027.