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Tag: Access Bank

  • DMO praises Access Bank on PDMM’s achievement

    The Debt Management Office (DMO) has commended Access Bank Plc for emerging as the most outstanding Primary Dealer Market Makers (PDMM) during the first half of 2016.

    In a statement released by the DMO office, the bank emerged most outstanding PPDM in first half of this year in terms of fulfillment of the performance assessment criteria for primary and secondary markets stipulated in the General Rules and Regulations Governing the PDMM system in Federal Government of Nigeria Securities.

    The commendation was giving to the Bank for its outstanding contribution to the continued growth and development of the Federal Government of Nigeria (FGN) Bond Market especially even under a difficult operating economic environment.

    Commenting on the commendation letter, Access Bank Group Treasurer, Oladapo Olagunju, said: “Our bond dealers are widely respected by participants in the market and this recognition by DMO is a confirmation of the leadership position that the Bank commands in the financial markets. This is the first time that DMO will be publicly commending a bank and we feel highly honoured to be the first recipient of this accolade.  We believe this is a testament to the bank’s continued push towards becoming the World’s Most Respected African Bank.”

  • Access Bank: Beating the odds

    Access Bank: Beating the odds

    Access Bank rode against the headwinds to beat the odds in the first half with strong growths in income, profitability and balance sheet. Capital Market Editor Taofik Salako reports that the increasingly stronger fundamentals of the first-tier bank have firmly placed it on the top curve of the banking growth trajectory – a near consensus among analysts

    Shareholders of Access Bank will receive about N7.23 billion as interim cash dividends, representing a dividend per share of 25 kobo. The interim dividend recommendation highlights the strong performance of the bank in the first half of this year, as increasing profitability of the commercial bank’s core banking business and cost efficiency expanded net earnings distributable to shareholders. Access Bank is one of the three banks that on the basis of audited report and accounts for the six-month period declared interim dividend per share of 25 kobo. Guaranty Trust Bank and Zenith Bank had earlier declared similar dividend.

     

    Stronger fundamentals

     

    Key extracts of the audited report and accounts for the six-month period ended June 30, 2016, showed pre and post tax profits rose by 28 per cent and 26 per cent. The bottom-line performance rode on the back of impressive growth and efficiency in the bank’s core banking incomes as interest income and net interest income grew by 14 per cent and 42 per cent. Gross earnings rose to N174 billion in first half 2016 as against N168.3 billion in the corresponding period of 2015. Interest income rose from N98.9 billion to N112.3 billion as a result of steady income growth from the bank’s core business and a 14 per cent reduction in interest expense. Non-interest income thus improved from N48.16 billion in first half 2015 to N68.45 billion in first half 2016. Also, strong growth in fee and commission income contributed to non-interest income of N61.7 billion which largely off-set the decline in trading income. Operating income grew by 11 per cent from N117.6 billion to N130.2 billion in 2015. Profit before tax rose by 28 per cent to N50 billion in first half 2016, from N39.1 billion in 2015, while profit after tax stood at N39.4 billion, up by 26 per cent from N31.1 billion in the corresponding period of 2015. The bank ended the period with a return on average equity (ROAE), which is above the inflation rate of 16.48 per cent.

    The bank’s balance sheet also emerged stronger with the loans and advances rising by 29 per cent to N1.82 trillion by June 2016 compared with N1.41 trillion recorded by the end of the year ended December 31, 2015. The devaluation of the naira accounted for 16 per cent of the loan growth, while core loan growth was 4.5 per cent. Customer deposits grew by 17 per cent from N1.68 trillion in December 2015 to N1.97 trillion in June 2016. Total assets improved by 26 per cent to N3.27 trillion by June 2016, up from N2.59 trillion in December 2015. The bank closed the first half with capital adequacy ratio (CAR) of 19.6 per cent, significantly exceeding the regulatory minimum.

    The bank continued to benefit from efficient credit risk management as asset quality remained stable, in spite of the macroeconomic headwinds. The proportion of non-performing loans to total loans stood at 1.9 per cent, within the best industry performance range and significantly below Central Bank of Nigeria’s industry target of 5.0 per cent. Besides, the bank increased coverage ratio(with regulatory risk reserve) to 223.6 per cent, up from 216.4 per cent as at December 2015. Impairment charges rose by 15 per cent from N8.9 billion to N10.2 billion, which is comparatively lower than the over 100 per cent recorded by some its peers.

    Underlying indices showed that the performance of the bank was driven by intrinsic fundamentals derivable from core banking business. Net interest margin, which measures the profitability of core banking operations, improved to 6.4 per cent in first half 2016 as against 5.6 per cent in first half 2015. Cost of funds, which measures the ability of the bank to attract relatively cheaper funds, improved to 3.6 per cent in first half 2016 compared with 5.3 per cent in comparable period of 2015. Strong income growth and improved cost controls impacted cost to income ratio, which improved from 59.2 per cent in first half 2015 to 53.7 per cent in first half 2016.

    The 2016 first half performance placed the bank on a good footing to sustaining its strong year-on-year growth, scaling up its profile as one of the top three banks in all weathers. Access Bank had recorded a well-rounded performance in 2015 as pre-tax profit rose by 44 per cent to N75.04 billion. The bank paid final dividend of N8.68 billion in addition to earlier interim dividend of N7.23 billion, bringing total dividend for the 2015 business year to N15.9 billion. The breakdown of the dividend indicated that shareholders received a final dividend per share of 30 kobo, in addition to interim dividend per share of 25 kobo, bringing total dividend per share to 55 kobo.

    Key extracts of the full-year audited report and accounts of Access Bank for the year ended December 31, 2015 had shown considerable growth across the key indices. Gross earnings rose by 37.5 per cent from N245.38 billion in 2014 to close at N337.40 billion in 2015. Interest income and non-interest income contributed 62 per cent and 38 per cent respectively to the group top-line. Interest income had grown by 17 per cent N207.8 billion in 2015 as against N176.9 billion in 2014, underlining improved income from lending activities and increased yield on investment securities. Non-interest income jumped by 89 per cent to N129.4 billion as against N68.4 billion, a jump that that was attributed largely to strong gains on foreign exchange trading income, which reflects management’s ability to diversify the bank’s revenue sources. The bank’s bottom-line showed impressive growth. Operating income rose by 39 per cent to N234.8 billion in 2015 as against N168.4 billion in 2014. Profit before tax grew by 44 per cent from N52.02 billion to N75.04 billion. Profit after tax improved by 53.3 per cent to N65.9 billion in 2015 as against N42.98 billion in 2014. Earnings per share thus improved from N1.85 in 2014 to N2.62 in 2015. Return on average equity (ROAE) improved to 20.4 per cent in 2015 as against 16.5 per cent in 2014.

    Balance sheet analysis equally showed resilient and steady growth. Loans and advances grew by a quarter to N1.41 trillion as against N1.12 trillion. Customer deposits closed 2015 at N1.68 trillion, 16 per cent above N1.45 trillion recorded in 2014. Total assets also rose by 23 per cent to N2.59 trillion in 2015 compared with N2.10 trillion in 2014. The bank’s capital adequacy ratio (CAR) improved by 110 basis points to 19.5 per cent in 2015 as against 18.4 per cent in 2014, driven by a successful equity raising during the year. Against the negative industry trend on assets quality, Access Bank bucked the trend and improved its asset quality as the percentage of non-performing loans to total gross loans improved to 1.7 per cent in 2015 as against 2.2 per cent in 2014.

     

    Analysts’ reviews

     

    Analysts have commended the performance of Access Bank in the first half, with most indicating that the bank surpassed their expectations. Exotix, an international finance and investment firm, described the performance as “strong headline earnings growth”, noting that the bank “has a firm grip on the number three loans market share position”.

    “As noted above, first half 2016 earnings are tracking ahead of our estimates although we expect a potential pullback in second half due to declining margins and increasing cost of risk. Nonetheless, we think the bank’s ability to sustain mid to high teens return on equity and capital adequacy is impressive and could result in an upward re-rating from its full year 2016 P/BVPS of 0.4 times,” Exotix stated.

    FBN Capital, the investment banking subsidiary of FBN Holdings, also said the first-half results were ahead of estimates. “Relative to our forecasts, the results were well ahead of expectations because we did not forecast any gain or loss on the other comprehensive income (OCI) line. Although net interest income was only slightly ahead of our N33 billion forecast, the non-interest income result was 46 per cent ahead of our estimate, leading to profit before provisions coming in 22 per cent higher than we had expected. While loan loss provisions of N7.8 billion negatively surprised by 82 per cent, the better-than-expected revenues were more than enough as an offset, leading to a positive surprise of 49 per cent on the profit before tax line,” FBN Capital stated.

    The FBN Capital’s analysts’ report stated that while there could be some cautious reviews of the bank’s earnings, analysts’ consensus estimates will nevertheless move up across the board.

    Analysts at Cowry Asset Management Limited described the results as impressive, noting that Access Bank is a leader in the banking industry. Cowry Asset placed a buy recommendation on the shares of Access Bank, indicating that the bank’s share price could rise from yesterday’s opening price of N5.60 to some N22.31 per share over the next 12 months. Nearly all analysts agreed that the bank’s share price has potential to appreciate, although the target price differs. FBN Capital had in earlier review indicated a target price of N8.30, more than 48 per cent above the current price.

     

    Looking forward

     

    The management of Access Bank said the first-half performance shows continuing resilience of the bank in the face of a challenging macro-economic environment, which has been further exacerbated by double-digit inflation, amid an untimely devaluation.

    Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the bank continued to grow its retail market share, leveraging innovation and technology to create lifestyle products and enhance customer experience. This growth has led to significant increase in transaction volumes and fee-related income. In addition, cost of funds dropped by 170 basis points, reflecting the increase in its low cost funding base.

    “The results underscore our continued ability to grow sustainably whilst effectively adapting to a challenging operating landscape.The prevalent macro-economic conditions put a strain on business performance across the industry, with increased concerns about asset quality deterioration. Despite these challenges, the bank’s asset quality remained stable, as non-performing loans remained below industry average, in line with our guidance. Our capital and liquidity levels were also sustained above regulatory limits,” Wigwe said.

    He pointed out that notwithstanding the high inflation and the impact of the currency devaluation on cost, the bank’s operating cost remained stable owing to cost management initiatives.

    “Optimising operational efficiency will remain an imperative for the second half of the year, as we continue to see the benefits of our cost initiatives intensify over the next few months. We believe that macro conditions will remain challenging. Nonetheless, our priority in the coming months will be to strengthen our position in the industry; increasing focus on risk and operational efficiency, with customer-centricity at the heart of our strategy,” Wigwe outlined.

    The latest results further strengthened Access Bank’s standing as one of best returns-yielding and investor- friendly stocks. With most banking stocks running with double-digit losses, year-to-date return analysis by FSDH Securities indicated that Access Bank and three other banks were the only stocks with positive returns so far this year. Access Bank’s share price opened with a year-to-date gain of 15.46 per cent yesterday, more than a double of banking industry’s average return of about six per cent and exceedingly better than the negative overall market’s average return of -4.45 per cent. The three other banks included Guaranty Trust Bank, United Bank for Africa (UBA) and Zenith Bank, which was trailing Access Bank with average return of 8.90 per cent.  The first-half results may be a reassurance to the 830,000 shareholders of Access Bank, that notwithstanding the challenges, the dividends will keep coming better.

  • Manufacturing: Lafarge, Access Bank partner to bridge gender gap

    Access Bank’s ‘W Initiative’, in collaboration with Lafarge Africa Plc, during the week organised a workshop with some of Nigeria’s leading women professionals in manufacturing to discuss gender disparity in the manufacturing sector.

    The workshop, which was attended by a large number of women executives and senior managers in the manufacturing sector, according to its organisers, demonstrated the conviction that women in manufacturing is good for business.

    Among others, the workshop examined the reasons for the unattractiveness of the sector to women, creating innovative solutions specifically targeted at professional women in manufacturing, and increasing the number of women who work in the manufacturing industry.

    Setting the tone for discussions, Access Bank’s Executive Director Elias Igbin-Akenzua said “approximately 600,000 manufacturing jobs are unfilled because companies can’t find qualified workers to fill them.

    “Women are critical to filling this gap and we must empower them to do so. We must also reduce the barriers for women in manufacturing in accessing funds from financial institutions for those who may want to transit from employees to manufacturing business owners”

    In her address to the gathering, Managing Director, Geocycle, Lafarge Africa Plc, Mrs. Adepeju Adebajo, remarked that women represent manufacturing’s largest pool of untapped talent and the dearth of women in manufacturing has been made more prominent recently, due to the potential skills shortage facing the industry.

    Mrs. Adebajo identified Nigeria’s formal education system as the most powerful agency of change from which several intelligent and confident women who now challenge many aspects of patriarchy in all leading occupations have emerged.

    While urging for support, coaching and encouragement for more women to be successfully recruited and retained in manufacturing, she stated that “women have become leading industry players in different sectors, which were for long the preserve of men – including manufacturing.

    “The industry needs to send out the right message that women can, and do succeed in manufacturing careers,” Adebajo said.

    Victoria Ibhawa of Deloitte provided valuable research and data, while other notable speakers at the workshop touched on the existing dearth of women professionals in the sector, the challenges they face and propositions on the way forward.

    This workshop is expected to culminate in the launching of a ‘think tank’ group providing advice and ideas on attracting, retaining and advancing women in the manufacturing workforce.

  • Access Bank wins int’l award

    Access Bank wins int’l award

    Access Bank Plc has emerged overall winner of the prestigious Outstanding Business Sustainability Achievement Award 2016.

    This award recognises outstanding success in incorporating economic, social and environmental aspects in the corporate strategy and business processes.

    Winners of the award must have holistically embedded Sustainability across the financial institutions.

    The prestigious award was presented to the Bank by the Government of Karlsruhe in conjunction with the EOSD, as part of the programme of the 2016 Global Sustainable Finance Conference (GSFC) 2016 last week in Karlsruhe, Germany. The feat makes Access Bank Plc the first African bank to win the global award.

     

  • Access Bank wins Karlsruhe Sustainability Award

    Access Bank Plc has received the Outstanding Business Sustainability Award at this year’s Karlsruhe Sustainable Finance Awards in Germany.

    This is coming barely a week after it won the  Euromoney Best Bank Transformation Award in London.

    This award, presented to the bank in Karlsruhe, Germany’s most sustainable city, recognises the bank’s outstanding success in incorporating economic, social and environmental aspects into its corporate strategy and business processes.

    This is the first time an African financial institution to win the award in recognition of the bank’s ability to embed sustainability in the financial institution.

    The ceremony was attended by global chief executives, senior executives of winning institutions and top German government officials.

    At the presentation, Group Managing Director/Chief Executive Officer (CEO) of the bank, Herbert Wigwe, said: “Winning the Outstanding Business Sustainability Achievement Award is a validation of Access Bank’s commitment, leadership and practice in Sustainability. For this, I would like to thank the Board, Management and staff of the bank. We are delighted to be presented with this highly coveted award. It is a testimonial to the unwavering support we have enjoyed from customers over the past few years and the hard work we have done in line with our five-year strategy to become the world’s most respected African Bank ’’

    “At Access Bank, we believe our operations, loan and project finance must have the barest environmental footprint. Indeed, we believe the net impact of our activities must be positive on the environment. As such, we are champions of climate change mitigation and adaptation,” he added. He assured that the bank will be further motivated and maintain profitable growth while embracing sustainability.

    The conveners said the awards are aimed at honouring organisations that have made outstanding contributions in sustainable finance, stimulated the interests of financial institutions and other stakeholders in integrating sustainability in their core business strategy.

    It recognises candidates who promote growth of sustainable financial instruments and markets worldwide particularly in green finance and investments, financial inclusion and social finance, green equity and holistic integration of sustainability in the financial services institutions.

  • Lagos, investors sign N844bn MoU on 4th Mainland Bridge

    Lagos, investors sign N844bn MoU on 4th Mainland Bridge

    The Lagos State Government and a consortium of private investors Wednesday signed a Memorandum of Understanding (MoU) to signal the commencement of the construction of the 38km 4th Mainland Bridge, expected to gulp about N844bn.

    The bridge is being constructed under the Build, Own and Transfer (BOT), concession of 40 years under a Public Private Partnership (PPP) initiative of the State Government.

    The consortiums to handle different stages of the mega project are Visible Asset Limited, Julius Berger Nigeria Plc, Hi-tech Construction Limited, J.P. Morgan, Eldorado Nigeria Limited, Nigerian Westminster Dredging and Marine, Africa Finance Corporation, AFC and Access Bank.

    The Bridge, among others would accommodate cyclists and pedestrians and feature two service areas as well as additional pedestrian crossing.

    The Bridge would also accommodate three Toll Plazas which are still being tested from financial point of view and it would serve as a major boost to the actualisation of the Lekki Master Plan.

    State Governor, Mr. Akinwunmi Ambode who spoke at the signing of the MoU held at the Banquet Hall, Lagos House, Ikeja, said that the need for the bridge had become imperative following the phenomenal growth of the State with a population of over 21 million people, which has in turn increased commercial activities and traffic gridlock across the metropolis.

    “This has made it imperative for us to have a 4th Mainland Bridge that will serve as an alternative route to the Eastern axis and decongest traffic in the State.

    “More importantly this bridge will provide the required transportation compliment to the rapidly growing industrial activities on the Eti-Osa – Lekki – Epe corridor of the State,” he said.

    He said the proposed alignment of the Bridge will pass through Lekki, Langbasa and Baiyeiku towns along the shoreline of the Lagos Lagoon estuaries, further running through Igbogbo River Basin and crossing the Lagos Lagoon estuaries to Itamaga Area in Ikorodu.

    The governor said the alignment will also cross through the Itoikin road and the Ikorodu – Sagamu Road to connect Isawo inward Lagos Ibadan Expressway at Ojodu Berger axis.

    He said the Bridge would be made up of eight interchanges to facilitate effective inter-connectivity between different parts of the State.

    “This structure will be a four-lane dual carriageway with each comprising three lanes and two metres hard shoulder on each side. The bridge will be constructed to have a generous median to allow for both future carriageway expansion and light rail facility. There is no gainsaying the fact that huge benefits will be derived from this project but most importantly, make life more comfortable for Lagosians,” he said.

    According to the governor, the Bridge testifies to the confidence the partners in the project have in the State Government and the Nigerian economy.

    Expressing optimism that the project would be delivered on a Win-Win framework for all investors, the governor said for the first time in the history of the State, the Government was embarking on the construction of a long-span bridge and expressway without Federal funding as the project is to be solely funded by the private sector.

    “I am delighted that this project which has been on the drawing board for quite some time is now set to become a reality. This again, is the continuity with improvement which we promised Lagosians.

    “We have started the process with the signing of this MoU which is an expression of the commitment of major stakeholders including the government and the consortium of consultants and investors to the delivery of the project within the scheduled time frame,” the Governor said.

    The project is to be financed by Africa Finance Corporation, Access Bank and other private investors who have already signified intention to be part of the construction, while Visible Assets Limited would be the coordinating firm.

    In his remarks, Executive Chairman of Visible Assets Limited, Mr. Idowu Iluyomade, said the project would go a long way to reduce traffic gridlock in the State and would provide job opportunities for Lagosians.

    He said aside improving the quality of life of the people, the Bridge would also be a big asset that would be handed to the Lagos State Government at the end of the concession, assuring that it would be delivered on schedule.

    Earlier, Commissioner for Works and Infrastructure, Engr. Ganiyu Johnson said that the Bridge when completed would utilise state of the art tolling system that will ensure free flow of traffic.

  • Access Bank, others raise funds through polo

    Preparations have reached top gear for the Access Bank UNICEF Charity Shield Polo Tournament which kicks off from next week at the Fifth Chukker Polo and Country Club, Kaduna.

    Funds from the tournament, which will feature three levels of competition, would be channeled into UNICEF’s programme for orphans and vulnerable children running in several schools in Kaduna.

    The first level, the UNICEF Cup holding May 25-31; the second and third levels, the Access Bank Cup and the Charity Shield would last from June 1-5, while the Guards, UK will hold in London on July 16, 2016.

    At press briefing last Thursday at the Access Bank headquarters in Victoria Island, Lagos, Mr Victor Etuokwu, Executive Director, Personal Banking of the bank said the tournament would feature a lot of side attractions for the children.

    He said the bank has been supporting the UNICEF OVC project for 10 years and has now extended the reach beyond vulnerable children to those affected by the insurgency in the northeast.

    “We have had this family meeting.  This is the 10th one and each time we come here, we remind you of our passion to be good corporate citizens.  Every year we have this, we like to make it as beneficial as possible for the orphans.

    “We will continue to support the schools that we have been supporting.  We will also extend our reach to some of the IDPs in the north.  We welcome support from partners who will join us in the programme,” he said.

    Director, Business Development, Fifth Chukker, Terri Brennam said the resort was happy to partner on the project because of its impact on the lives of the children.

    Ms Brennam said 150 children from the UNICEF beneficiary schools would be hosted on children’s day during the tournament.

    “We are inviting again approximately 150 children from the UNICEF supporting schools and as well as some from schools in Kaduna.  It is going to be a daylong series of activities – everything from running horses; painting projects, sports projects; we have the baby polo pitch where the youngsters will learn the fundamentals of polo and we will serve lunch.  UNICEF will give a small presentation to the children.  After the lunch, some of the schools are putting up plays, musicals, their own interpretation of what the theme of this year’s children’s day about violence against children means.

    Blessing Ejiofor, Communication Officer, Advocacy Media and External Relations, UNICEF, said the funds provided by Access Bank and Fifth Chukker partnership make it possible for the agency to improve facilities in the three beneficiary schools in Kaduna.  She said they have been able to construct classrooms and perimeter fencing, furniture, textbooks, and teaching aides – all of which have improved learning outcomes in the schools.

    Polo Captain for Fifth Chukker, Hassan Babangida, described the tournament as the most prestigious in Africa.

     

  • Access Bank advocates insurance for economic growth

    Access Bank advocates insurance for economic growth

    • Insurers urged to recapitalise

    The Group Managing Director of Access Bank Plc, Mr. Herbert Wigwe, has said that Nigeria cannot grow without having a strong insurance industry as backbone. To achieve this, Access Bank, Wigwe said, is ready to partner with insurers to showcase insurance to Nigerians and espouse its relevance to national development.

    Wigwe, who spoke at an insurance forum organised by the bank for stakeholders in the insurance industry, noted that to achieve this, insurance firms would need to embrace merger and acquisitions as this will position them to recapitalise, thereby becoming stronger to take on mega businesses in the country.

    The forum with the theme: “Harnessing Economic Realities with Opportunities for Growth in the Insurance Industry” and sub theme: “Key Issues that affect the Nigerian Insurance Industry,” according to Wigwe,  was aimed at tinkering with the possibility of banks partnering with insurers to further grow the economy.

    “Insurance has a broader outlet but there are several issues hindering the growth of the industry. About 20 years ago, it used to have international players from America and Britain who had depth of skills. They set up reinsurance offshore and so the industry inherited these skills from them.

    “But the fact that people did not pay attention to insurance left a situation where those skills took the back stage. The world over, insurance companies owned banks, and not the other way round. There is need to build strong companies in Nigeria that can manage risk a lot better and provide long term money. This way sector like telecommunication, housing, etc and basically develop infrastructure.”

    Director-General, Nigeria Insurers Association (NIA), Sunday Thomas on his part said for insurers to thrive and excel in 2016, they will need to place customers at the centre of their business plans and strategies

    “They also need to review our products, policies and processes to ensure that they are relevant to customers’ needs. We must begin to build capacity in retail businesses. We must deliver on the promises through simplified claims processes that will leverage on the use of cutting edge technology.

    “For the  sustainability of the industry, the market must continue to enhance the way it is valued by the consumers and other stakeholders. The industry must step up its consumer education and public awareness of the vital importance of insurance as a social and economic transformation mechanism.

    “Insurance industry will need to keep developing innovative solutions required by consumers to manage risks in an increasingly complex and uncertain environment, price based competition cannot drive growth and sustain the market and therefore must change. There must be high level deployment of technology which  will ensure efficiency needed to ensure sustainable growth while the availability of key talents is crucial to the survival and success of the insurance industry,” he said.

  • Shareholders approve N100b new capital raising for Access Bank

    Shareholders approve N100b new capital raising for Access Bank

    Shareholders of Access Bank Plc yesterday authorised the board of the bank to raise up to N100 billion in new capital as part of plan to optimise the balance sheet and capital structure of the bank.

    At the 27th annual general meeting in Lagos on Wednesday, shareholders authorised the bank to raise additional debt capital of up to N100 billion through the issuance of non-convertible loans, notes, bonds and any other instruments either as a stand-alone issue or by establishing a debt issuance programme.

    The resolution empowered the board of directors to undertake the new debt issue by way of a public offering, private placement, book building process, reverse call enquirer or any other method or combination of methods, in such tranches, series or proportions and at such dates, coupon or interest rates within such maturity periods and upon such terms and conditions as may be determined by the board of directors subject to obtaining the requisite approvals of the relevant regulatory authorities.

    The board of the bank explained that the new capital issue was in line with the strategic growth objectives and prudent risk management of the bank with the overall goal of enhancing the bank’s funding, capital base and profitability through an efficient capital structure.

    “This need is underscored by the growing scale of regulatory headwinds and economic realities which have further put demands on capital. This is further strengthened by the fact that from 1 July 2016, the Capital Adequacy Ratio for Systemically Important Banks (SIBs) is being increased from 15 per cent to 16 per cent,” the board stated.

    Shareholders also approved payment of a final dividend of N8.68 billion in addition to earlier interim dividend of N7.23 billion, bringing total dividend for the 2015 business year to N15.9 billion. The breakdown of the dividend recommendation indicates that shareholders will receive a final dividend per share of 30 kobo, in addition to interim dividend per share of 25 kobo, bringing total dividend per share to 55 kobo.

    Shareholders who spoke at the meeting generally commended the resilience of the bank in the face of macro and industry headwinds.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu noted that the bank has remained resilient in the face of harsh operating environment.

    He said the performance of the bank was a pointer that the future is promising, urging the bank to improve on the dividend payouts in the coming years as it has all it takes to surpass other lenders in the country.

    Chairman, Access Bank Plc, Mrs. Mosun Belo-Olusoga assured on the prospects of the bank notwithstanding the changes in the macroeconomic environment.

    “The bank is in a position of strength for the future-we have a solid franchise that allows us to continue to succeed during difficult economic times. We have a conservative risk profile that has placed us in a position of advantage amidst the economic storm and we are investing for long-term growth, which will allow us to capitalise on opportunities as we eventually emerge from the downturn,” Belo-Olusoga said.

    Chief executive officer, Access Bank Plc, Mr. Herbert Wigwe said the bank remained committed to delivering value to its shareholders as it continues to maintain and sharpen focus on the execution of its strategy to create a large diversified bank with a strong retail base.

    “We are well-positioned to leverage promising market opportunities in target sectors and to enhance our digital banking capabilities, with the ultimate goal of delivering superior service to customers and sustainable returns to investors. Access bank will cautiously maximize its strong capital position to realise the full value of its network, with the aim of attaining strategic objectives,” Wigwe said.

    Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2015 showed considerable growth across the key indices. Gross earnings rose by 37.5 per cent from N245.38 billion in 2014 to close at N337.40 billion in 2015. Operating income rose by 39 per cent to N234.8 billion in 2015 as against N168.4 billion in 2014. Profit before tax grew by 44 per cent from N52.02 billion to N75.04 billion. Profit after tax improved by 53.3 per cent to N65.9 billion in 2015 as against N42.98 billion in 2014. Earnings per share thus improved from N1.85 in 2014 to N2.62 in 2015. Return on average equity (ROAE) improved to 20.4 per cent in 2015 as against 16.5 per cent in 2014.

  • Access Bank grows Q1 net profit by 42%

    Access Bank grows Q1 net profit by 42%

    Access Bank Plc sustained its winning streak into the first quarter of 2016 as the commercial bank recorded double-digit growths in the top-line and profit.

    Key extracts of the first quarter report of Access Bank for the three-month period ended March 31, 2016 released yesterday at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 31.12 per cent while pre and post tax profit grew by 36.68 per cent and 42.1 per cent respectively. All key balance sheet items also firmed up.

    Group gross earnings rose to N73.47 billion in March 2016 as against N56.03 billion recorded in the comparable period of 2015. Profit before tax rose from N16.52 billion to N22.58 billion. After taxes, net profit grew from N13.67 billion to N19.42 billion.

    The balance sheet expanded during the period. Total assets rose from N2.59 trillion in December 2015 to N2.75 trillion by March 2016. Deposits from customers totaled N1.80 trillion by March 2016 as against N1.68 trillion in December 2015. Total equity improved from N367.80 billion to N382.48 billion.

    Exotix Partners, a global investment finance and research firm, said Access Bank’s first quarter performance appeared to have beaten the tough macroeconomic environment in Nigeria.

    “As we have written repeatedly, the US dollar scarcity is crippling economic activity and putting significant pressure on banks’ balance sheets. Notably, the parallel rate is now at a 60 per cent premium to the official rate. So, with this backdrop we were expecting first quarter 2016 for Access Bank and its peers to be challenging. However, today Access Bank published first quarter 2016 net attributable profit growth of 43 per cent year-on-year and 8.0 per cent quarter-on-quarter. First quarter 2016 loans and deposits were up 26 per cent year-on-year and 29 per cent year-on-year respectively. First quarter 2016 non-performing loans (NPLs) were broadly flat year-on-year, as coverage increased to 123 per cent-from 87 per cent in first quarter 2015, despite the risk charge falling to 73 basis points from 135 basis points in first quarter 2015. Furthermore, the bank’s first quarter 2016 margins improved 141 basis points year-on-year to 6.34 per cent and its cost-income ratio fell to 57.9 per cent, from 62.2 per cent, while its RoAE came in at an impressive 20.7 per cent. Take Access Bank out of Nigeria and re-read the operating trends we have summarised and you would probably think that this is a Kenyan bank holding on to the glory years,” Exotix Partners stated.

    The management of Access Bank said the first quarter performance was due to intrinsic strategies built into the business, which are now impacting the operations of the bank. According to the bank, the resilient performance was due to benefits of initiatives that were deployed last year in the retail banking space.

    The first quarter came on the heels of equally impressive full-year 2015 results. The bank’s pre-tax profit rose by 44 per cent to N75.04 billion. Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2015 showed considerable growth across the key indices. Gross earnings rose by 37.5 per cent from N245.38 billion in 2014 to close at N337.40 billion in 2015. Interest income and non-interest income contributed 62 per cent and 38 per cent respectively to the group top-line. Interest income had grown by 17 per cent N207.8 billion in 2015 as against N176.9 billion in 2014, underlining improved income from lending activities and increased yield on investment securities. Non-interest income jumped by 89 per cent to N129.4 billion as against N68.4 billion, a jump that that was attributed largely to strong gains on foreign exchange trading income, which reflects management’s ability to diversify the bank’s revenue sources.

    The bank’s bottom-line showed impressive growth. Operating income rose by 39 per cent to N234.8 billion in 2015 as against N168.4 billion in 2014. Profit before tax grew by 44 per cent from N52.02 billion to N75.04 billion. Profit after tax improved by 53.3 per cent to N65.9 billion in 2015 as against N42.98 billion in 2014. Earnings per share thus improved from N1.85 in 2014 to N2.62 in 2015. Return on average equity (ROAE) improved to 20.4 per cent in 2015 as against 16.5 per cent in 2014.

    With these, the board of Access Bank has recommended payment of a final dividend of N8.68 billion in addition to earlier interim dividend of N7.23 billion, bringing total dividend for the 2015 business year to N15.9 billion. The breakdown of the dividend recommendation indicates that shareholders will receive a final dividend per share of 30 kobo, in addition to interim dividend per share of 25 kobo, bringing total dividend per share to 55 kobo.

    “In the coming year, we will remain resilient in the execution of our bold strategy for increased growth and profitability. Though market conditions will remain challenging, we will focus on innovation, proactive risk management and data analytics as catalysts for diversifying income streams and enhancing retail expansion, so as to maximize shareholder value in 2016 and beyond,” group managing director, Access Bank Plc, Mr. Herbert Wigwe said on the 2016 outlook for the bank.