FY2015: Access Bank proposes 30 kobo final dividend, records ₦337.4bn gross earnings

Access Bank Plc has proposed a final dividend of 30 kobo per share, bringing the total dividend for the its 2015 financial year to 55 kobo.

Herbert Wigwe, Access Bank MD

The bank, in its audited results for the full year ended 31 December 2015, also recorded a gross earnings of ₦337.4bn in FY 2015, a 38% increase from ₦245.4bn it posted in its 2014 financial year end, hence, the interest income and non-interest income contributing 62% and 38%, respectively.

Moreover, it’s Interest Income grew by 17% to ₦207.8bn in FY 2015 from ₦176.9bn in FY 2014 as a result of improved income from lending activities and increased yield on investment securities.

The bank stated that it’s Non-Interest Income stood at ₦129.4bn, up 89% in FY 2015 from ₦68.4bn in FY 2014, largely attributable to strong gains on FX trading income, which reflects management’s ability to diversify the bank’s revenue sources.

Operating Income of the bank increased to ₦234.8bn in FY 2015, a 39% growth on the back of increased earnings compared with ₦168.4bn in the corresponding period of 2014.

Profit Before Tax (PBT) for the period, on the other hand, rose to ₦75.0bn, representing a 44% y/y growth when compared to ₦52.0bn it posted in 2014, while the bank’s Profit After Tax (PAT) was up 53% in FY 2015 to ₦65.9bn from ₦43.1bn in FY 2014.

Return On Average Equity (ROAE) of 20.4% was achieved by the bank in FY 2015, from 16.5% in FY 2014, indicative of the bank’s commitment to maximising shareholder returns.

Speaking on the development, Group Managing Director / Chief Executive Officer of the bank, Herbert Wigwe, said: “This year’s results reinforce our resolve to generate sustainable returns despite challenging market conditions. We achieved strong financial progress in 2015 as the Group recorded a 44% growth in profit before tax to ₦75 billion from ₦52 billion in 2014, with significant contribution from our securities trading business.”

Guided by a robust risk management framework, he stated that the bank’s diversified business model yielded positive results as it grew the business cautiously and recorded sound prudential ratios. During the year, he noted that, “we successfully raised capital by way of Rights Issue which has significantly strengthened our capital base and now provides us with sufficient headroom to harness opportunities in key growth sectors of the economy. In addition, the recent upgrade of our national scale credit rating to ‘A’ by Fitch Ratings – even in an extremely difficult environment – will enable growth in the market share of our customers’ businesses and solidify our position as a top player in the industry.”

Saying that in the coming financial year, the bank will remain resilient in the execution of its bold strategy for increased growth and profitability, he added that, “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.”