Mergers & Acquisitions | |
Mergers & Acquisitions | |
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Monday, April 27, 2020 07:50
PM / Press Release by Access Bank Plc / Header Image
Credit: Grassroot
Inspite of current macro economic issues , we have made solid progress
in the first quarter of 2020 in line with our 2018-2022 five year strategy.
This is based on a sustainable and resilient business model; as we continue to
invest in our people, technology and product offerings to better serve our
customers.
Related Link: Access Bank
Launches New Five-Year Strategy - to Become Africa's Gateway to the World
On the one year anniversary of the Bank's merger with Diamond Bank, the
Group delivered solid earnings underscoring the value potentials of the newly
expanded business franchise with Gross Earnings of N209.8bn, a 31%
increase from the prior year. A major driver of this growth is the 58% increase
in non-interest income to N77.9bn, on the back of improved gains on trading
instruments and a decisive approach to grow transaction income sustainably
through channels and other E-business.
We have taken major strides in embedding efficiency in all facets of our
business, leveraging retail and pursing proposed merger synergies. We have
achieved N54.3bn
of the proposed N153.9bn synergies, of which revenue synergies account
for 86%. Showcasing further impact of the value accretive merger, our average
Cost of Funds dropped 60bps y/y and q/q, leading to an improved Net Interest
Margin of 5.9%
Despite the high cost of operation, arising from the enlarged business
scale, and increase in net impairment charge, Profit before Tax (PBT) grew by
3% to N46.3bn.
Our Cost-to-Income ratio stood at 62.2% due to increased cost of operations of
the enlarged business scale, higher regulatory costs and increased investment
in creating IT efficiency slacks poised to meet the Bank's future growth
ambitions.
Our capital and liquidity position remained above regulatory levels,
with a Capital Adequacy Ratio of 20.9% and liquidity ratio of 44.6%,
demonstrating the capacity of the enlarged balance sheet to cope with possible
shocks. Immense focus was also placed on asset quality with a conservative
stance, backed with write offs to further drive our NPL ratio down to 5.5% in
the period.
Recognizing the impact of the COVID-19 Pandemic on
macro, social, and consumer behavior, Access Bank remains committed to
delivering innovative service offerings and strong value to our customers and
stakeholders. In view of this, we have enacted a wide-ranging set of financial
stability measures and taken proactive steps to minimise our exposures and migrate
more of our customers to our E-banking platforms.
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1.
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2.
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3.
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4.
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6.
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CRC Credit
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12. ACCESS Notifies
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20. Access
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Access Bank And Diamond Bank Ratings Affirmed On Announced Merger; Outlook
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27. Access Bank
Launches New Five-Year Strategy - to Become Africa's Gateway to the World