By Chinwendu Obienyi
Access Holdings Plc has announced that its gross earnings for the year ended 2022 rose to N1.38 trillion as against N971.89 billion recorded in the corresponding period of 2021.
According to its consolidated and separate financial statements for the year ended December 31, 2022, the group’s interest income advanced by 37.5 per cent year-on-year (y/y) to N827.47 billion in 2022, buoyed by the expansion in the Holdco’s earning assets (+25.4 per cent y/y) and elevated yields in the environment.
Specifically, higher income was generated from investment securities (+64.0 per cent y/y to N333.99 billion), loans and advances to customers (+28.0 per cent y/y to N461.19 billion), and cash and balances with banks (+29.6 per cent y/y to N12.26 billion) in the review period.
The group also recorded a 55.8 per cent y/y increase in interest expense to N467.84 billion, triggered by higher costs incurred on deposit from banks (+83.6 per cent y/y to N118.53 billion), deposits from customers (+63.4 per cent y/y to N273.06 billion), interest-bearing liabilities (+14.0 per cent y/y to N52.01 billion) and debt securities (+5.0 per cent y/y to N22.82 billion).
However, the group’s profitability was pressured as its profit before tax (PBT) declined by 5.1 per cent y/y to N167.68 billion as against N176.70 billion recorded in 2021. Similarly, the group’s PAT settled 4.6 per cent y/y lower to N152.90 billion, despite the lower income tax expense (-10.4 per cent y/y) in the period.
The group’s earnings per share (EPS) also fell by 3.1 per cent from N4.44 as against N4.58 recorded in 2021. Notwithstanding, the board proposed a final dividend of N1.30 per share (2021FY: 0.70 kobo per share), which equates to a dividend yield of 14.4 per cent based on the last closing price of N9.00 per share (April 19, 2023).