Access Bank Plc has reported a profit after tax of N102.300 billion for the third quarter ended September 30, 2020 from N88.437 billion in 2019, representing a growth of 15.68 per cent. The bank in a filing with the Nigerian Stock Exchange (NSE) recorded a profit before tax of N116.622 billion from N100.802 billion in 2019, amounting to a growth of 15.69 per cent. The lender’s net interest income stood at N196.273 billion in 2020 from N210.218 billion in 2019. Access Bank reported a profit after tax of N61.03 billion for the half year ended June 30, 2020 from N61.87 billion in 2019, representing a marginal decline of 1.4 per cent.
The bank recorded a profit before tax of N74.31 billion from N72.96 billion in 2019, amounting to a growth of 1.8 per cent. The lender’s gross earnings grow by 22.32 per cent to N396.76 billion in 2020 from N324.36 billion in 2019.
The bank recorded an interest income decline of 9.6 per cent y/y to N246.72 billion in the period, pressured by the decline in income from investment securities (-31.4 per cent y/y to N74.00 billion). According to analysts at Cordros Capital, the decline in income from investment securities was expected given increased capital allocation to risk asset creation given the CBN’s LDR policy, as well as the precipitous decline in yields on assets from the prior year.
“This decline was steep enough to offset growth in other contributory lines, as income from loans and advances to customers (+0.3 per cent y/y to N160.61 billion) and banks (+7,598 per cent y/y to N6.72 billion), as well as cash and balances with banks (+11.5 per cent y/y to N5.39 billion) all expanded over the period”.
Interest expense expanded moderately over the period, advancing by 2.3 per cent y/y to N120.52 billion, with the most pressure exerted by interest on deposits from financial institutions, which rose by 48.8 per cent y/y to N34.07 billion, and offset the declines from deposit from customers (-11.6 per cent y/y) and debt securities (-31.3 per cent y/y).
Non-interest income grew by 194.5 per cent y/y to N138.85 billion, supported by strong growth in income from investment securities (3,152 per cent y/y to N134.84 billion), primarily driven by derivative instruments, which offset the substantial FX revaluation loss recorded (+988.7 per cent y/y to N57.6 billion). Access Bank had recorded a profit after tax of N40.9 billion in the first quarter period ended March 31st, 2020, according to the company’s latest earnings report to the NSE. Access Bank recorded an increase in its profit before tax to N46.2 billion in the period under review from N45.1 billion in the corresponding period of 2019.