Access Holdings’ gross earnings jump 59% to N940.31bn in H1’23

Business A.M

Access Holdings Plc posted gross earnings of N940.311 billion in the first half of the year ended June 30,2023, showcasing a 58.89 per cent year-on-year growth, underpinned by  substantial gains in net fair value and foreign exchange in a period marked by economic headwinds.

The financials of the  holding company of Access Bank also reflected growth in other indices as profit after tax jumped 52 per cent from N88.73 billion in the first half  of 2022 to  N135 billion in the first six months of 2023. The bank’s pre-tax result followed a similar positive route, jumping  71.39 per cent  year-on-year to N167.601 billion.

Furthermore, the holdco’s interest income appreciated 63.00 per cent year-on-year to N606.837 billion,which was attributed to the bank’s strategic focus on expanding its loan portfolio and investments in securities.

In a similar trajectory, Access Holding’s fair value and foreign exchange gains surged by 49.74 per cent year-on-year to N192.047 billion. These gains were primarily attributed to significant fair value gains on equity investments and profits from foreign exchange and fixed-income securities trading during the period under review.

The bank continued to expand its loan book as loans and advances to customers hit N6.71 trillion, representing a  31.54 per cent growth and reflecting Access Holdings’ commitment to supporting businesses and individuals in achieving their financial goals.

Customers’ deposits also experienced an uptick,increasing by 35.20 per cent year-on-year to N12.508 trillion, demonstrating the bank’s growing customer base and trust in its financial services.

Though the financials showcased an impressive performance, a closer scrutiny of the report identified a significant surge in interest expenses which rose by a substantial 118.88 per cent year-on-year to N382.598 billion.

Access Holdings explained that the surge was primarily driven by higher interest expenses related to customer deposits, which increased by 33.31 per cent year-on-year, totaling N318.526 billion. Consequently, the bank’s net  income growth moderated to 13.54 per cent year-on-year, reaching N224.239 billion.

The bank noted that it is mindful of the rising interest expenses, which have impacted net interest income growth.

Meanwhile, the directors of Access Holdings have proposed an interim dividend of 30 Kobo per ordinary share of 50 Kobo each on the 35,545,225,622 issued ordinary shares of 50k held by shareholders.

The bank, in a corporate actions announcement, said the dividend will be subject to appropriate withholding tax, and will be paid to shareholders whose names appear on the Register of Members as at the close of business of Thursday, October 5, 2023.

“On Thursday, October 19, 2023, the Interim dividend will be paid electronically to shareholders whose names appear on the Register of Members as at close of business on Thursday, October 5, 2023 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their Bank accounts,” the bank stated.