Access Bank Plc has announced N39.63 billion profit in audited half year (H1) result and accounts for the period ended June 30, 2018. The financial institution had reported N39.46 billion half year result and accounts for the period ended June 30, 2017.
Amid steady performance in profit, the management of Access Bank proposed N0.25 interim dividend for shareholders who invested in the company.
Access Bank said, gross earnings grew by three per cent to N253 billion in H1 2018 from N246.6 billion in H1 2017, with interest and non-interest income contributing 74per cent and 26per cent respectively. Interest Income grew by 15per cent to N186.7billio in H1 2018 from N161.9billion in H1 2017.
Non-Interest Income of N66.1billion in H1 2018, 22per cent below N84.4billion reported in H1 2017.
The asset base of the Bank remained strong and robust with growth of seven per cent in total assets to N4.37trillon in June 2018 from N4.10trillon in December 2017. Loans and Advances totaled N2.0trillon as at June 2018 (December 2017: N2.06trillion).
Customer deposits increased by seven per cent to N2.41trillion in June 2018, from N2.25 trillion in December 2017. Capital Adequacy of 20.8per cent and liquidity ratios of 43.2per cent remained consistently above the regulatory minimum requirement.
The Group Managing Director, Access Bank, Mr. Herbert Wigwe, in a statement said, “The Group reported top line earnings of N253billion, up three per cent from the corresponding period in 2017, demonstrating the implementation of our strategy, notwithstanding the challenging operating environment.
“We recorded strong growth of 15per cent in our interest income to N187billion from N162billion in H1 2017, and an increase of 21per cent in transaction banking income to N30.1billion from N24.8billion, as we continued to penetrate and deepen our market presence in the retail space.
“However, the growth in interest and transaction banking income did not compensate enough for the significant decline in trading and foreign exchange income, which suppressed operating income for the period. Thus, consolidated profit before tax for the half year ended June 2018 came in at N45.8billion, from prior year’s figures of N52.0billion.
We continue to deliver on cost, capital and credit quality. Operating expense reduced by six per cent from the corresponding period to N98.2billion from N105.1billion highlighting the effectiveness of our effort to systematically reduce our cost profile.
“Cost of risk came in at 0.6per cent from 1.1per cent in H1 2017, and we remain financially robust, as underlined by our strong capital and liquidity ratios of 20.8per cent and 43.2per cent respectively.
“Going into the second half of the year, we will continue to focus on bringing down our cost of funding and further diversify our earnings base.”