Access Bank grows 2016 Q1 profit by 42% to N19.4bn

Herbert Wigwe, Access Bank MD

Access Bank Plc, the full service commercial bank with headquarters in Nigeria  with operations across Sub-Saharan Africa, the UK, Asia and the Middle East, has announced its unaudited results for the period ended 31 March 2016, showing 42% increase in Profit After Tax.

Access Bank maintained its robust profitability, recording an annualised 20.7% return on average equity (ROAE) from 19.2% in the first quarter of 2015.

The unaudited first quarter 2016 financial results released to the Nigerian Stock Exchange (NSE) on Monday, showed that the Bank recorded gross earnings of ₦80.3bn in Q1 2016, up 5% y/y from ₦76.8bn in Q1 2015, with interest income and non-interest income contributing 69% and 31%, respectively. Profit Before Tax (PBT) for the period rose to ₦22.6bn, representing a 37% y/y growth when compared to ₦16.5bn in Q1 2015. Profit After Tax (PAT) up 42% y/y to ₦19.4bn in Q1 2016 from ₦13.7bn in Q1 2015.

“I am pleased with the Group’s solid first quarter performance characterised by improved margins and strong profit growth despite prevalent macro headwinds and a slowed economy. Today, we are realising the benefits of initiatives that were deployed last year in the retail banking space, evidenced by the rapid adoption and utilisation of our enhanced digital platforms. This translated to growth in our retail-related fee and commission income”, said Herbert Wigwe, the GMD/CEO of Access Bank Plc, while commenting on the results.

He said as the Bank cautiously grows its loan portfolio in light of macro realities, it will continue to uphold the highest standards of risk management in order to sustainably maintain asset quality.

“We are encouraged by these results, and in the coming quarters, we will intensify the implementation of our strategic cost reduction initiatives in order to improve our bottom-line. We will also explore and activate other innovative avenues to expand our digital banking proposition so as to achieve improved revenues and deliver sustainable shareholder value in the long term,” Wigwe stated.

Access Bank Plc is a full service commercial Bank operating through a network of 374 branches and service outlets located in major centres across Nigeria, Sub Saharan Africa, and the United Kingdom with representative offices in China and the UAE.

Listed on the Nigerian Stock Exchange in 1998, the Bank serves its various markets through four business segments: Personal, Business, Commercial and Corporate & Investment Banking. The Bank has over 830,000 shareholders including several Nigerian and International Institutional Investors and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last twelve years ranking amongst Africa’s top 20 banks by total assets and capital in 2015.

As part of its continued growth strategy, Access Bank is focused on mainstreaming sustainable business practices into its operations. The Bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant.