ACCESS Declares N106bn PAT in 2020 Audited Results, Proposes 55K Final Dividend; (SP:N8.00k)

Proshare

Thursday, April 01, 2021 / 12:14PM / NSE /Header  Image Credit: Access Bank


Proshare Nigeria Pvt. Ltd.


Access Bank Plc released its 2020 Audited results for the period ended December 31st, 2020.


Key Highlights

  • Gross Earnings grew by 14.7% to N765bn from N667bn in the previous quarter.

  • Profit before tax grew by 12.5% to N126bn.

  • Profit after tax grew by 12.7% to N106bn.

  • Net Assets grew by 23.8% from N607bn to N751bn.


Proshare Nigeria Pvt. Ltd.


Visit Access Bank Plc IR Page in Proshare MARKETS

Proshare Nigeria Pvt. Ltd.


Group Audited Results for the Full Year ended 31 December 2020

Access Bank delivered solid and resilient top-line figures despite a challenging economic and regulatory landscape. This is an attestation to our long history of resilience, scale, dedicated people and sustainable business model. Our resilient business model ensured that the Group adapted to accommodate the resultant macro-economic downturn and headwinds of the COVID-19 pandemic.


The Group recorded gross earnings of N764.7bn (+15% y/y), arising from a 112% y/y growth in non-interest income to N275.5bn, which is testimonial to the effectiveness of our strategy and capacity to generate sustainable revenue. Profit Before Tax stood at N125.9bn despite the high cost of operating the enlarged franchise and the increase in net impairment charge of near N43bn arising principally (~50% of net impairment) from a Structured Trade Finance ("STF") portfolio in the Access Bank UK. The STF impairment is one-off/COVID related and recoverable over the next 12-18 months against insurance cover from world class insurers.


We also recorded consistent growth in our retail banking business, leading to a 5.8mn growth in customer sign-on during the year via our financial inclusion drive and retail revenue of N177.2bn (FY 2019: N107.8bn). Customer deposits grew by 31% to N5.59trn in Dec 2020 (Dec 2019: N4.26trn) with savings account deposits of N1.31trn. Similarly, net loans and advances grew by 18% to N3.61trn (Dec 2019: N3.06trn). Our asset quality also continued to improve as guided to 4.3% (Dec. 2019 5.8%) as we intensified recovery efforts, undertook significant write off and leveraged our robust risk management practices This is expected to continue to trend downwards as we strive to surpass the standard we had built in the industry prior to the merger with Diamond Bank.


The strategic actions that the Bank has taken over the past 12 months evidence a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation. In 2020, Access Bank proudly opened its doors for business in Kenya and Mozambique, further increasing our footprints across the African Continent. Access Bank Zambia also concluded the acquisition of Cavmont Bank Limited in January 2021 and the Group recently announced the approval by relevant regulatory authorities for the acquisition of Grobank Limited, creating an inroad into the South African market in realization of the Group's strategic ambitions.


In view of the opportunities that exist in the market, we will be transitioning to a HoldCo structure. The Bank has received the Approval-In-Principle from the Central Bank of Nigeria for the restructuring and the HoldCo will consist of 4 subsidiaries in order to tap into the market opportunities that are available in the consumer lending market, electronic payments industry and retail insurance market.


Going into the fourth year of our 5-year cyclical strategy, our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner. Finally, I would like to thank our people, shareholders, and other stakeholders as we could not have achieved these results without their dedication, commitment, and support.


Proshare Nigeria Pvt. Ltd.


Financial Review

Gross Earnings rose 15% y/y to N764.7bn in FY 2020, (FY 2019: N666.8bn), with interest and non-interest income contributing 64% and 36% respectively.


Profit Before Tax (PBT) for the period rose by 13% y/y to N125.9bn (FY 2019: N111.9bn). Profit After Tax (PAT) also grew by 13% y/y to N106.0bn from N94.1bn in FY 2019, on the back of a 32% y/y growth in Operating Income which offsets the rise in Impairment Charges and Operating Expenses.


The Assets base of the Group remained strong and resilient with Total Assets of N8.68trn in December 2020, a growth of 22% YTD from N7.14trn in December 2019. Net Loans and Advances totaled N3.61trn as at December 2020 (December 2019: N3.06trn).


Non-Performing loans (NPL) ratio stood at 4.3% as at December 2020 (December 2019: 5.8%), on the back of a N105bn write-off and recoveries in the period.

 

 Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Related News

1.       Access Bank Receives Regulatory Approvals to Its Proposed Acquisition of SA Base...

2.      Access Bank s EIU Forecasts Headline Inflation for January 2021 to Rise to 16.64...

3.      ACCESS Approves 2020 Results and Payment of Final Dividend Awaits Regulatory Ap...

4.      AfCFTA Access Bank Targets Becoming Largest Financial Services Aggregator In Af...

5.      ACCESS Notifies of Board Meeting Date and Commencement of Closed Period...

6.      Access Bank Zambia Ltd Completes the Acquisition of Cavmont Bank Ltd...

7.      ACCESS GUARANTY Are Incoming as NSE Reveals Results of Full Year 2020 Market In...

8.     ACCESS Releases its 2019 Sustainability Report...

9.      Access Bank 9M 2020 Results Topline Growth Greets Rising Impairment Charges... 

10.  Two Days After ACCESS Share Price Dips By -2.92 as SEPLAT Remains Flat...

11.   Access Bank Partners Coronation Insurance for Bancassurance...

 

 Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP