ACCESS Declares N22.12bn PAT in Q1 2018 Results,(SP:N11.35k)

Proshare
Wednesday, April 25, 2018 / 03:35 PM / NSE

Proshare Nigeria Pvt. Ltd.

Financial Review for the First Quarter Ended 31 March 2018 

Gross Earnings rose
19% to 137.5bn in Q1 2018, (Q1 2017: 116.0bn), with interest and non-interest income contributing 70% and 30% respectively. Interest Income grew by 20% y/y to 95.6bn in Q1 2018 from 79.3bn in Q1 2017. Non-Interest Income of 41.8bn (+15% y/y) in Q1 2018 from 36.5bn in Q1 2017. Profit before Tax (PBT) for the period of 27.4bn while Profit After Tax (PAT) was down 1% y/y to 22.1 from 22.4bn in Q1 2017. Return on Average Equity (ROAE) of 18.2% and Return on Asset of 2.1% in Q1 2018. 

The asset base of the Bank remained strong and robust
with growth of 7% in total assets to 4.38trn in March 2018 from 4.10trn in December 2017. Loans and Advances totaled 2.1trn as at March 2018 (December 2017: 2.06trn). Customer deposits increased by 12% to 2.51trn in March 2018, from 2.25trn in December 2017. Capital Adequacy of 19.3% and liquidity ratios of 41.3%, remained consistently above the regulatory minimum requirement. 

Non-performing loans
stood at 4.7% as at March 2018 (December 2017: 4.8%). Cost of risk increased marginally to 0.9% in Q1 2018 from 0.7% in Q1 2017 on the back of prudent risk management practices during the period. 

Net Interest Margin (NIM)
of 5.8% in Q1 2018 from 6.7% in Q1 2017, while Cost of Funds (CoF) increased 70bps y/y to 5.8% from 5.1% in Q1 2017. Yield on Asset of 12.4%, down 10bps from 12.5% in Q1 2017 and Cost-to-Income Ratio (CIR) stood at 62.5% in Q1 2018 (Q1 2017: 61.0%).

Commenting on the results, Herbert Wigwe, GMD/CEO said:
“The group delivered resilient results with gross earnings of 137 billion and profit after taxes of 22 billion, underscoring our ability to deliver sustainable earnings.

We have begun the implementation of key elements of our strategy, and I am excited at the prospects in the coming months. A key part of this is the continued execution of our retail market penetration initiatives, as it remains a strong catalyst to the sustainability of non-funded income growth. In addition, we remain focused on consolidating our market position in the corporate and commercial banking segment. 

I am equally pleased to report on the performance of our subsidiaries, who contributed 26% of group profits, highlighting the effective execution of our subsidiarization strategy. 

During the period, liquidity and capital adequacy ratios of 41.3% and 19.3% remained well in excess of the minimum statutory requirements.

The implementation of cost measures show great promise, as we wind down expensive structured funding, and also increase our retail penetration. We have also commenced a strategic operating cost reduction program which will see operating cost moderate for the rest of the year.

Our priority for the rest of the year, will be to focus on our retail offerings as we continue to see the benefits of the initiatives intensify over the next few months.”  

CLICK HERE TO VIEW MORE 

Proshare Nigeria Pvt. Ltd.

Related News

1.Access Bank Plc - 2018 ROE Guidance a Stretch

2. Access Bank Plc 2017FY Conference Call and Earnings Presentation - The Key Takeaways

3. Access Bank Plc FY 2017 - No Room to Swing a Cat

4.Access Bank Reports Q4 2017 Results – Funding Income Grew by 28% as OPEX Declined by 21% YoY

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

6.  Fitch Affirms Access Bank at 'B'; Upgrades National Rating to 'A (nga)'

7. Access Bank Upgrades Ombudsman To Boost Dispute Resolution

8. Access Bank Plc Appoints Mr. Adeolu Bajomo as Executive Director, I.T and Operations

9. Access Bank Plc Announces Date of Board Meeting and Closed Period

10.Access Bank Plc States Facts behind the Purported Charges by ICPC against the Bank and its Officers

11.Moody''s Downgrades Eight Nigerian Banks Following Downgrade of Nigeria''s Government Bond Rating

12. Access Bank Plc Announces the Resignation of Mrs. Ojinika Olaghere as Executive Director

READ MORE:
Related News
SCROLL TO TOP