Access Holdings Plc, Nigeria’s largest financial institution, has announced an interim dividend of 30 kobo following its impressive financial performance in the first half of the year.
The bank reported a profit after tax of N135.44 billion during this period, representing a significant increase from the N88.74 billion recorded in the corresponding period in 2023.
According to the audited financial statement for the half-year, Access Holdings demonstrated substantial growth in key financial metrics. Profit after tax surged by 52.63%, reaching N135.44 billion, while gross earnings stood at ₦940.3 billion, a remarkable growth of 58.9% compared to the ₦591.8 billion achieved in the same period last year.
The bank attributed its improved performance to a combination of factors, including a 63.0% growth in interest income and a 51.9% increase in non-interest income. Access Holdings also recorded impressive figures in profit before tax (PBT) and profit after tax (PAT), with N167.6 billion and N135.4 billion respectively, reflecting growth rates of 71.4% and 52.6%.
One of the key drivers of the bank’s success was the significant increase in customer deposits, which rose by 35% year-to-date to reach ₦12.5 trillion. This achievement solidifies Access Holdings’ position as the leading financial institution in Nigeria in terms of total assets.
The bank’s strategic approach and synergy across its business verticals played a crucial role in generating these positive results. It experienced a 39.0% year-on-year increase in total assets and a 40.6% rise in shareholders’ funds. Currently, Access Holdings’ total assets and shareholders’ funds stand at ₦20.9 trillion and ₦1.7 trillion, respectively.
Herbert Wigwe, the Group Chief Executive Officer, emphasized the bank’s commitment to growth, stating, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many countries.” Wigwe also highlighted the bank’s objective of transforming Access Holdings Plc into a leading financial and ecosystem player, fostering shared prosperity among all stakeholders.
In addition to its impressive financial performance, Access Holdings achieved notable milestones in its subsidiary businesses. The Group’s Pensions business surpassed the ₦1.0 trillion in Assets Under Management (AUM) milestone, ranking as the 4th largest Pension Fund Administrator (PFA) by AUM and the 2nd largest by the number of registered retirement savings accounts (RSAs).
Furthermore, the bank’s payments vertical, Hydrogen, processed over ₦3.0 trillion in transactions, experiencing substantial growth in point-of-sale (POS) transactions and maintaining a 99% system uptime on account switching.
Despite operating in a high inflationary environment, Access Holdings improved its cost-to-income ratio (CIR) by 4.9% year-on-year through prudent adjustments in personnel costs, effective management of regulatory fees, and continued investments in technology to enhance cost efficiency and user experience.
Regarding regulatory ratios, the Group demonstrated robust liquidity and capital adequacy, surpassing regulatory thresholds with a liquidity ratio (LR) of 50% and a capital adequacy ratio (CAR) of 19.1%.
Access Holdings’ exceptional financial performance in the first half of the year showcases its resilience, strategic focus, and commitment to delivering value to its shareholders and customers. The bank remains poised for further growth and aims to play a leading role in the financial landscape across Africa.
Source: Guardian