Connect with us

Business

Access Bank EPS falls despite 8% rise in profits

Published

on

Spread The News

Tier one lender, Access Bank Plc despite posting a  8 per cent increase in net income recorded a fall in its Earning per Share (EPS) in 2016, National Daily has gathered from its yet to be officially released full year report for 2016.

The diluted earnings per share which is calculated by considering the impact of the treasury shares in weighted average number of ordinary shares outstanding shows that Access Bank Earning per Share fell to two hundred, fifty thousand in 2016 from the two hundred and sixty five thousand in 2015.

A glimpse of the report also revealed that the weighted number of ordinary shares issue increased to 28,927,972 by the end of 2016 compared to the 24,897,936 million recorded in 2015. Similarly, the weighted average number of treasury shares moved up from 461,618 from the 240,850 recorded in 2015.

Meanwhile, its profit for 2016 from continuing operations as stated earlier increased by eight per cent to 71, 117,025 by the end of 2016 from 65,332,540 recorded in 2015.

In the audited results, the bank proposed a final dividend of 40 Kobo per share bringing the total dividend for the year to 65 Kobo.

In the audited financial, the bank reported strong sustainable growth across all its four business lines despite a weak and volatile macro-economic backdrop.

During the period, the group posted total revenue of N381.3 billion and profit before tax of N90.3 billion, accounting for 13 percent and 20 percent increases respectively over the same period in 2015.

The key drivers of the growth include a 20 basis points margin expansion on the back of a 32 percent year-on-year growth in net interest income of N139.1 billion. Non-interest income accounted for 49 percent of growth in operating income of N272.6 billion compared to N234.8 billion in 2015.

Commenting on the results, Herbert Wigwe, Group Managing Director/CEO, said, “The full year 2016 results demonstrate the effective execution of our strategy underpinned by a robust risk management framework. With strong business fundamentals, our position in the top tier was further consolidated in the industry.”

Recall that Access Bank was among the banks that recorded improved results for the nine months ending in September 30, 2016 thereby raising shareholders’ hopes for higher returns on investments at the end of the 2016 financial year.

In terms of balance sheet size of Access Bank as at September 2016, the bank closed the period with loans and advances of N1.84 trillion, up by 30 per cent from N1.41 trillion in as at December 31, 2015.

Specifically, customer deposits grew from N1.68 trillion in December 31, to N2.1 trillion in September 30, 2016. Total assets improved by 31 per cent to N3.39 trillion, up from N2.59 trillion. Capital adequacy ratio stood at N19 per cent, which is well above the regulatory minimum.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published.

Trending