Access Bank announces 38% increase in profit

By odunewu Segun  

Access Bank Plc has joined other performing commercial banks in the country by announcing a 38 per cent increment in gross earnings in the 2015 financial year ending 31^st of March, 2016.

At the Bank’s Annual General Meeting held in Lagos today, its revenue grew from N245 billion recorded in 2014 to N337 billion in 2015. Access Bank’s profits also rose to N75 billion in 2015 from N52 billion recorded in 2014.

On the balance sheet management, loans and advances grew by 25% to n1.4 trillion, as total assets stood at N2.6 trillion. Also, credit impairment charges rose to N14 billion in 2015 as a result of unfavourable  macro-economic trends, most assets quality metrics improved as non-performing loans ratio and cost of risk declined to 1.7%(2014:2.2%) and 1.0%(2014:1.2%) respectively.

While announcing a final dividend of 30 kobo per ordinary share in addition to the interim dividend of 25 kobo per ordinary share earlier paid in September 2015, Chairman of the Board, Mrs. Mosun Belo-Olusoga said Access Bank defied and acted decisively to boost its capital, raising N41.7 billion of additional Tier 1 capital that met healthy demand from investors.

She said: “This, in addition to the $400 million Tier 11 capital issued in 2014, provides the Group with enhanced capacity to leverage market opportunities in target sectors and expand its digital banking capabilities”

According to Olusoga, Access bank’s overall performance underscores its commitment to the continued execution of its strategy in order to generate sustainable economic returns, while maximizing shareholders’ value.

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Also speaking at the event, Access Bank’s GMD/CEO, Herbert Wigwe said despite the prevalent macro headwinds in 2015, the bank was tenacious in its bid to raise equity capital via Rights Issue to achieve sufficient capital headroom to support the attainment of its longer-term objectives.

He said Access bank is one of the most capitalized banks in the industry with a capital adequacy ratio of 20% which is well above regulatory minimum of 16%. “We will focus on strengthening our franchise, transforming our service delivery and optimising our systems to provide world class banking services to our customers.”

There were also changes to the Board with Mr. Gbenga Oyebode retiring as Chairman of the Board in July 2015 following his successful completion of the maximum twelve-year term. Similarly, Dr. Mahmoud isa-Dutse also resigned as Non-Executive Director after ten years of dutiful service to take appointment as Permanent Secretary in the Federal ministry of Finance.