Access Bank’s profit rises by 9 per cent to N71.44 billion

06 Mar 2017
Financial Nigeria


Access Bank's total assets rose 34 per cent to N3.48 trillion.

Herbert Wigwe, Group Managing Director/CEO, Access Bank Plc

Access Bank, one of Nigeria’s largest banks, has released its full year 2016 financial results showing that after-tax profit rose by 9 per cent to N71.44 billion, compared to N65.87 billion reported in 2015.

The rise in the bank’s profit was supported by an 18 per cent rise in other operating income such as gains on sale of securities of N16.21 billion during the period under review. Gross earnings rose 13 per cent to N381.32 billion compared to N337.4 billion posted in 2015 due mainly to a sharp increase in interest income as well as fee and commission income.

Renaissance Capital, a Russian investment bank, said in a note issued to investors that it maintains its outperform rating for Access Bank, because the Nigerian lender has an opportunity, alongside three other tier one banks, to consolidate its market share amidst Nigeria’s economic challenges.

According to the bank’s financial results released at the Nigerian Stock Exchange on Monday, Access Bank said total assets rose 34 per cent to N3.48 trillion as against N2.59 trillion in the previous year. Total impaired loans rose 62 per cent to N39.44 billion (2 per cent of total loans) from N24.42 billion (1.70 per cent of total loans) in 2015.

Notwithstanding the rise in revenue and profit, Access Bank said basic earnings per share fell to N2.50 per share compared to N2.65 per share reported a year earlier. The bank has declared a final dividend of 40 kobo per share, taking total dividend to 65 kobo per share.

Access Bank’s stock fell 3.71 per cent to close at N6.48 per share at the NSE on Monday.

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