Follow Us on Google
Access Bank Plc announced it recorded a profit before tax of N46.29 billion in the first quarter (Q1) period ended March 31, 2020, from N45.10 billion, representing a 2.6 per cent increase year-on-year (y-o-y).
According to a filing obtained from the NSE’s website at the weekend, the company’s financial statement showed that its net interest income for the period under review stood at N72.2 billion, indicating a 27 per cent increase compared to N56.8 billion that was recorded in Q1 2019.
The bank’s interest income growth grew by 19.0 per cent y/y to N131.87 billion in the period, which was underpinned by strong growth in income from loans and advances (+46.4 per cent y/y to N 83.84 billion).
Consequently, all major contributory lines recorded spikes, with regulatory charges – AMCON levy (+54.6 per cent y/y to N17.52 billion) (+31.0 per cent y/y to N6.49 trillion), and NDIC premium (+62.0 per cent y/y to NGN3.71 billion) –, personnel expenses (+53.5 per cent y/y to N19.63 billion), and other expenses (+77.8 per cent y/y to N42.31 billion) all expanding.
Non-interest income grew by 56.0 per cent y/y to N72.98 billion, supported by strong growth in income from derivative instruments (+416.4 per cent y/y to N84.25 billion), which offset the substantial FX revaluation loss recorded (+1.032.9 per cent y/y to N53.26 billion). Also, noteworthy was the significant growth in fees and commissions income (+76.0 per ceny y/y to N23.00 billion).
However, the bank’s profit after tax (PAT) decreased slightly by 0.53 per cent to N40.9 billion down from N41.1 billion recorded in 2019. Given the significant year-on-year expansion in operating expenses, the bank’s cost-to-income ratio (after accounting for LLEs) deteriorated to 66.1 per cent from 55.0 per cent in the corresponding period of the prior year.
Furthermore, the company’s earnings per share (basic) for the period decreased to 121 kobo as against 139 kobo while diluted earnings per share fell to 119 kobo in Q1 2020 as against 137 kobo in Q1 2019.
Market watchers say the bank’s performance was well removed from its expectation, given the substantial FX revaluation loss while adding that there are some positives, related to growth in income and resilience of the fees and commissions despite weaker transaction flows and lower charges.
