Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Access Bank Plc 2016 FY Conference Call & Earnings Presentation - The Key Takeaways

Proshare

Thursday, March 09, 2016 6:22pm / Proshare Markets

Access Bank Plc today held its Q4’16 Investors and Analyst Conference Call Earnings Presentation. PROSHARE participated along with leading investment firms, analysts and portfolio managers.

The bank stated that due to the volatility witnessed in 2016, the bank needed to strengthen its liquidity position; necessitating the raising of approx.. $300m Eurobond and a commercial paper during the year.

Furthermore, the bank stated that the naira witnessed about 42% devaluation as at June 2016. This made some SMEs and manufacturing entities to find it extremely difficult to access the required FX to support their production process. In spite of these challenges, the bank still grew is gross earnings by 13%.

The key drivers of the bank’s growth in gross earnings are; strong fee and commission income; net trading income, largely as a result of change in balance sheet management strategy and other income which was primarily driven by gains on disposal of equity investment (₦16.2bn) limited the impact of the decline in net trading income recorded in the period.

The bank managed its cost of risk at 1.2% and its NPL ratio at 2.1% while an improvement was recorded in the bank’s capital adequacy ratio (CAR).

In a nutshell, below are the key takeaways from the 20116 FY earnings presentation made by the bank management;

         The bank is secured in terms of its exposure to the Etisalat loan and the business of the company is good and safe compared to what the media is reporting.

         The bank’s exposure to Etisalat is about N40bn and the interest is continually being serviced.

         The bank’s exposure to MTN (N20bn), Airtel (N12) and Etisalat (N40bn) is just about 6.3%

         The banks plans to achieve cost of risk of 1.2%, NPL of 3% and liquidity ratio of 45% in 2017

         The bank intends to achieve above points through balance sheet optimization, cost containment and its Asset Quality


 
Related News
1.       ACCESS declares N71.44 billion PAT in 2016 Audited Results; Proposes 40k Final Dividend,(SP:N6.48k)

2.      Access Bank Posts N90.3bn Profit in 2016, Declares 40k Final Dividend

3.      FO, Access Bank and Others Turn to the Bond Market

4.      Access Bank Plc - Investment Case Still Strong Despite Raised OPEX

5.      ACCESS declares N57.09 billion PAT in Q3 2016 Results,(SP:N5.70k)

6.      Access Bank Plc Successfully Raises US$300m Eurobond

7.      Access Bank Announces Exchange Offer and Minimum New Issue Yield

8.     Access Bank Plc -Tapping the Eurobond Current

9.      Access Bank to Raise New Euro Bond

10.  Monetary Policy Committee Decision Review - Access Bank Plc

11.   Access Bank Plc Announces the Retirement of Mr. Oritsedere Samuel Otubu as a Non-Executive Director

12.  Access Bank Reiterating Outperform Rating After Strong Q2’16 Results

13.  ACCESS BANK Half-Year Earnings Presentation: The key takeaways

14.  Access Bank Plc Impressive Earnings Beat Estimates, PAT Up by 26% YoY

15.   Access Bank NPLs to Total Gross Loans Stand at 1.9% in H1'16 As Against 1.7% in 2015

16.  ACCESS declares N39.49 billion PAT in Q2 2016 Result Proposes 25kobo Interim Dividend SP N5.34k

17.   Access Bank Plc to Submit Half Year Audited Financials Not Later Than 31st August 2016

18.  Access Bank anticipates the MPC will retain the existing FX policy regime

19.  Inflation to Moderate Downwards to 15.4% in June 2016 - Access Bank Plc

20. Access Bank anticipates the MPC will retain the existing FX policy regime

Related News