ACCESS declares N61.99 bn PAT in Q4 2017 Results, Proposes N0.40k Dividend Per share(SP:N11.75k)

Wednesday, March 21, 2018 /04:28 PM / NSE

Proshare Nigeria Pvt. Ltd.


Group Reports Resilient Audited Results for the Full Year Ended 31 December 2017

“Our operating performance in 2017 was impacted by the residual effects of macro-economic conditions of 2016, characterized by slow economic expansion and adverse credit conditions, which resulted in making conservative provisions on our loan book. Despite the macro and regulatory headwinds, our underlying business remained strong as reflected in the gross earnings growth of 20% to N459bn in 2017. We grew our loan book to position it for improved earnings, whilst driving deposit mobilization from targeted segments to diversify our funding base. 

The year 2017 was pivotal for our Bank, as we concluded our 2013-2017 corporate strategic plan. Its successful implementation was hinged on discipline, hard work, and an unwavering commitment to our set objectives. I am particularly excited about the next phase of the Bank’s evolution centred on an integrated global franchise. The execution of the 2018-2022 strategy commences with focus on deepening our retail offerings, underpinned by strong digital and payment solutions. Throughout the next phase, we will continue to invest in technology as we establish a universal payments gateway with an ecosystem of local and international partnerships. 

In the coming periods, we will focus on the disciplined implementation of our strategy to drive efficient and operational excellence across all segments, expand revenue and increase profitability, with enhanced focus on risk management practices and a disciplined cost containment structure. 

Financial Review for Year Ended 31 December 2017
The asset base of the Bank remained strong and robust with sustained growth of 18% y/y in total assets to H4.1otrn from N3.48trn in December 2016. Maintained healthy growth in customer deposits with 7% y/y increase to N2.25trn, from H2.09trn in December 2016, and Loans and Advances (+11% y/y) to N2.06trn in December 2017, from H1.86trn in December 2016.

Gross Earnings increased to a total of N459.1bn in FY 2017, a 20% increase y/y (FY 2016: N381.3bn), of which interest income and non-interest income comprise 70% and 30% respectively indicating a stable revenue base. Interest Income grew by 29% y/y to N319.9bn in FY 2017 from N247.2bn in FY 2016 reflecting income growth from core business driven by a higher interest environment, Non-Interest Income was up 4% to N139.1bn, in FY 2017 from N133.4bn in FY 2016; driven by growth in FX-related gains.

Increase in impairment charges contributed to the decrease in PBT to N80.1bn, representing a 11% y/y decline compared to N90.3bn in 2016. Impairments were up 57% y/y and 780% q/q due to significant provision of N19.1bn taken in Q4’17. Profit After Tax (PAT) fell -13% in FY 2017 to N62.obn from N71.4bn in FY 2016 bringing Return on Average Equity (ROAE) to 12.8% in FY 2017, from 17.4% in FY 2016 and Return on Asset to 1.6% from 2.4% in FY 2016. Net Interest Margin (NIM) of 5.8% in FY 2017 from 6.2% in FY 2016, and Cost of Funds (CoF) increased 8obps y/y to 5.1% from 4.3% in FY 2016 due to high yield environment. Yield on Asset rose to 11.3% by 2obps from 11.1% in FY 2016 and Cost-to-Income Ratio (CIR) stood at 62.1 % in FY 2017 (FY 2016: 58.8%). 

Prudential ratios remained strong and well above the regulatory limits with Capital Adequacy Ratio (CAR) at 22.5% (FY 2016: 21 .1%). Liquidity ratio of 47.3% providing adequate buffers and headroom for growth. Non-performing loan ratio of 4.8%, an increase from 2.1% reflecting the impact of the macro on asset quality. 

Operational Highlights
1. Successfully concluded the 2013-2017 strategy, unveiled the new five-year roIIing strategy spanning 2018 - 2022 aimed to position the Bank as "Africa’s Gateway to the World" in addition to its vision of being the world’s most respected African bank.

2. Awards and Recognition:
CBN Sustainability Awards 2017:
• Sustainable Bank of the Year
• Sustainable Transaction of the Year (Oil and Gas Sector)
• Sustainable Transaction of the Year (Agriculture)
• Excellence in Women Economic Empowerment

World Finance Awards 2017:
• Most Sustainable Bank, Nigeria
• Best Corporate Governance, Nigeria

Karlsruhe Sustainable Finance Awards, 2017:
• Outstanding Business Sustainability Achievement Award

3. Retirements during the year: Ojini Olaghere retired as Executive Director, IT & Operations, and Obinna Nwosu resigned as the Group Deputy Managing Director.

4. Appointments during the year: Roosevelt Ogbonna was appointed Group Deputy Managing Director, Hadiza Ambursa was appointed Executive Director, Commercial Banking and Gregory Jobome appointed as the Executive Director, Risk

5. The Group received a national scale rating upgrade to AA- (previously rated A+) from Agusto and Co.

6. Redeemed $245.01 million outstanding principal and final coupon on the 5-year $350 million Eurobond 

Related News

Related News