ACCESS Declares N94.98bn PAT in Q4 2018 Results, Proposes N0.25k Final Dividend


 Friday, March 15, 2019  09:00 AM  / NSE With Additional Notes from FBNQuest

Proshare Nigeria Pvt. Ltd.


Initial Reaction – FBNQuest



Access Bank’s 2018 PBT of N103.2bn surprised positively relative to ours and consensus forecasts of N91.9bn and N102.3bn. On a post-tax basis, the bank’s earnings imply an ROAE of 15.6%. Although the bank’s ROAE missed management’s 20% guidance for the year, it was well ahead of our 14.0% ROAE forecast. Following the strong set of results, we expect to see a positive reaction from the market.  



 Q4 2018 PBT and PAT showed significant growth partly due to weak base effects. The key drivers were a 61% y/y growth in pre-provision profits and a -71% y/y reduction in loan loss provisions. In terms of revenue contribution, although both revenue lines contributed strongly to pre-provision profit growth, non-interest income which growth by 188% y/y was the major driver. Funding income also grew by 21% y/y. Relative to our forecasts, PBT beat by 52% mainly because of positive surprises in funding income and provisions.



Limited; opex increased by 74% y/y, slightly higher than expected. The bank has proposed a final dividend of N0.25 which is around -40% lower than our N0.42 forecast ( N0.51 consensus) and implies a yield of 4.2%. It is also lower than the 40kobo the bank paid in 2017 as final dividend.


We rate Access Bank Outperform. Our estimates are under review.


 Access Bank Q4 2018 results: actual vs. FBNQuest Capital Research estimates (N millions)

Proshare Nigeria Pvt. Ltd.

Source: NSE; FBNQuest Capital Estimates

Proshare Nigeria Pvt. Ltd.

Related News

1.    ACCESS declares N62.91bn PAT in Q3 2018 Results,(SP:N8.0k)

2.    ACCESS BANK Announces Board Meeting Date and Closed Period

3.    Access Bank partners World Remit for instant money transfers to Nigeria

4.    Access Bank Plc H1 2018 Conference Call and Earnings Presentation - The Key Takeaways

5.    Access Bank Declares N39.63bn PAT in Q2 2018 Results; Propose 25k Interim Dividend,(SP:N9.50k)

6.    Access Bank Leads on Customer Intimacy on WhatsApp

7.    Access Bank Plc Announces its Closed Period and Board Meeting

8.    NSE Migrates Access Bank, Lafarge, Seplat And UBA To Premium Board On April 16

9.    Access Bank PLC Ratings Affirmed At 'B and B' And 'ngBBB and ngA-2'; Outlook Stable

Related News