Access Holdings Plc reports record-breaking 65% profit Surge in Q3 2024

Access Holdings Plc has unveiled its impressive financial performance for the third quarter of 2024, reporting a pre-tax profit of N209.2 billion, marking a remarkable 65.01 per cent increase from N126.8 billion during the same period in 2023.

The group’s strong performance underscores its strategic growth in core banking operations, including a surge in interest income and significant gains in fee and commission earnings.

For the nine-month period ending September 30, 2024, cumulative pre-tax profit soared to N558.1 billion, reflecting an extraordinary 89.59 per cent growth compared to the same period in 2023.

The group also delivered a 100.01 per  cent rise in net interest income, which doubled to N331.4 billion from N165.7 billion in the previous year’s third quarter.

Access Holdings’ stellar results were powered by strong growth in core income streams. Interest income for the third quarter hit N867.6 billion, up an impressive 142.87 per cent year-on-year.

READ ALSO: Access Holdings profit soars to N612.49bn,  up 300% YoY

This was driven by a substantial increase in both loans and advances to customers (N1.2 trillion) and investment securities (N838.1 billion).

Despite the higher income, the bank also faced a significant interest expense, which rose by 115.42 per cent to N594.3 billion in the third quarter of 2024.

This was mainly attributed to higher funding costs related to deposits from financial institutions and customer deposits, which stood at N9.7 trillion and N22.8 trillion, respectively.

Despite the rising interest expense, the bank’s net interest income nearly doubled, reaching N331.4 billion, bolstered by a surge in lending activity and improved asset-liability management.

Advertisement

In addition to the core banking revenue, fee and commission income grew by 81.07 per cent, reaching N150.5 billion for the quarter. This includes income from credit-related fees (N151 billion) and a strong contribution from channel and e-business services (N121.1 billion).

Fair value and foreign exchange gains were also up by 15.43 per cent, totaling N141.4 billion for the period, reflecting the group’s diversified income streams and its ability to capitalize on favorable market conditions.

READ ALSO: Access Holdings in strategic alliance with Coronation Group, 2 others to broaden Remittances

Access Holdings also reported a notable 50.63 per cent increase in earnings per share (EPS), which reached N4.79 for the third quarter, signaling improved shareholder value.

As of September 30, 2024, Access Holdings’ total assets surged to N41 trillion, marking a 53.96 per cent increase from the previous year. The group’s assets grew significantly, driven by a rise in cash and cash equivalents (up to N4.2 trillion from N2.0 trillion) and strong growth in customer loans.

In terms of liabilities, total liabilities climbed to N3.7 trillion, primarily due to the growth in deposits from customers and financial institutions.

The group reported N9.0 trillion in term deposits and N9.3 trillion in demand deposits, reflecting a healthy deposit base that supports its lending activities.

According to Chijioke Otu, Senior Analyst at KPMG Nigeria, “Access Holdings’ strong performance is a testament to its well-executed strategy of expanding its lending base and diversifying income streams, particularly through its growing fee and commission business.

“The dramatic growth in interest income, despite rising interest expenses, highlights the bank’s ability to manage its assets and liabilities effectively, leveraging the higher demand for loans in both the consumer and corporate segments.”

Adebayo Adeniran, Chief Economist at FSDH Merchant Bank, added, “The bank’s geographical diversification has also played a key role in its success. With strong contributions from both Nigeria and its international markets, especially Europe, Access Holdings has demonstrated its ability to navigate multiple market environments.

“The strong growth in non-interest income, coupled with its robust asset base, positions the bank well for continued growth into the final quarter of the year,” he added.

Advertisement