Access Bank grows 2016 Q1 profit by 42%

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By Chioma Obinagwam

Access Bank Plc, Nigeria’s leading commercial bank, has announced its unaudited result for the period ended 31st March 2016, showing 42 per cent increase in Profit After Tax(PAT).

According to the result, Access Bank maintained a robust profitability, recording an annualised 20.7 per cent return on average equity (ROAE) from 19.2 per cent in the first quarter of 2015.

The unaudited first quarter 2016 financial results released to the Nigerian Stock Exchange (NSE) on Monday, showed that the Bank recorded gross earnings of ₦80.3 billion in first quarter (Q1) 2016, up 5 per cent year on year from ₦76.8 billion in Q1 2015, with interest income and non-interest income contributing 69 per cent and 31 per cent, respectively.

More so, Profit Before Tax (PBT) for the period rose to ₦22.6 billion, representing a 37 per cent Year-on-Year(y/y) growth when compared to ₦16.5 billion in Q1 2015. Profit After Tax (PAT) up 42 per cent  to ₦19.4 billion in Q1 2016 from ₦13.7 billion in Q1 2015.

Commenting on the result, Herbert Wigwe, the Group Managing Director of Access Bank Plc said:

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“I am pleased with the Group’s solid first quarter performance characterised by improved margins and strong profit growth despite prevalent macro headwinds and a slowed economy. Today, we are realising the benefits of initiatives that were deployed last year in the retail banking space, evidenced by the rapid adoption and utilisation of our enhanced digital platforms. This translated to growth in our retail-related fee and commission income”, said.

He said as the Bank cautiously grows its loan portfolio in light of macro realities, it will continue to uphold the highest standards of risk management in order to sustainably maintain asset quality.

“We are encouraged by these results, and in the coming quarters, we will intensify the implementation of our strategic cost reduction initiatives in order to improve our bottom-line. We will also explore and activate other innovative avenues to expand our digital banking proposition so as to achieve improved revenues and deliver sustainable shareholder value in the long term,” Wigwe added.

The bank also said its Annual General Meeting(AGM) will hold on Wednesday, April 27, 2016 in Lagos.