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Access Bank reports N971.9bn gross earnings in FY’21

Access Bank Plc’s gross earnings for the financial year ended December 31, 2021 rose by 27 per cent year on year (y/y) to N971.9 billion in FY 2021, from N764.7 billion posted in FY 2020, with interest and non-interest income contributing 62 per cent and 38 per cent respectively. Profit before tax (PBT) for the period rose by 40 per cent y/y to N176.7 billion from N125.9 billion posted in FY 2020 while Profit after tax (PAT) also grew by 51 per cent y/y to N160.2bn from N106.0bn in FY 2020. The assets base of the Group remained strong and resilient with Total Assets of N11.7 trillion as at December 2021, a growth of 35 per cent y/y from N8.7 trillion as at FY 2020.

Customer Deposits totaled N7.0 trillion as at December 2021 from N5.6 trillion in 2020. Net Loans and Advances totaled N4.4 trillion as at December 2021 from N3.6 trillion in 2020. Non-Performing loans (NPL) ratio stood at 4.0 per cent as at December 2021 from 4.3 per cent in 2020. Herbert Wigwe, the Chief Executive Officer said: “Our diversified business model yielded positive sustainable results, guided by a robust risk management framework, as we grew the business cautiously and recorded sound prudential ratios. This year’s results reinforce our resolve to generate sustainable returns despite challenging market conditions.

“The Group achieved a 27 per cent y/y growth in gross earnings to N971.9 billion (FY 2020: N764.7 billion), leading to an improvement in the Profit After Tax to N160.2 billion (FY 2020: N106.0 billion). Consequently, our Return on Average Equity (ROAE) stood at 17.8 per cent, tracking in line with our commitment to stakeholders.

“We sustained robust capital and liquidity positions, well above regulatory levels with a Basel II Capital Adequacy Ratio of 24.5 per cent and a Liquidity Ratio of 51.0 per cent. This positions the Bank to support our customers across various markets and adequately execute our expansion strategy. “To actualize our vision of becoming the world’s most respected African Bank and Africa’s Payment Gateway, we have taken strategic strides to create indelible footprints across the African continent. These include our most recent additions in South Africa, Botswana, and Guinea We also strengthened our business in Mozambique and Zambia, with noticeable improvement in rankings and market share.

“In the year, we successfully issued the first Additional Tier 1 (AT1) Eurobond out of Nigeria. The USD500 million instrument enhances our capital ratios and provides significant headroom for growth and the execution of our strategic objectives. We also issued a USD500 million Senior Unsecured Eurobond during the period, elongating the duration of our FX balance sheet and strengthening our liquidity.

“2022 is pivotal for our franchise, as we conclude our 2018-2022 corporate strategic plan. In the year, we will focus on a disciplined implementation of our strategy to drive efficiency and operational excellence across all segments, expand revenue and increase profitability, with enhanced focus on risk management practices and a disciplined cost containment structure. “As we go into our next 5-year strategy cycle, we are realigning the franchise for growth, by transitioning into a Holding Company (HoldCo). This will enable us to unlock and capture available non-banking opportunities in the market, that would lead to the diversification of our earnings, drive efficiency, and grow scale while maintaining our moderate risk management approach. “Having met regulatory requirements and obtained the Court Sanction, we expect the HoldCo to become operational is the first half (H1) of 2022. This will lead to the delisting of Access Bank Plc’s shares on the Nigerian Exchange (NGX) and listing of Access Hold- Co shares.”

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