With N168bn, Access Holdings Posts 71.4% Increase in PBT

Kayode Tokede

Access Holdings Plc has announced its audited half year ended June 30, 2023 financial statement which showed that the holding company recorded 71.4 per cent increase in profit before tax (PBT) to N167.6 billion, compared with the N97.79 billion reported in the corresponding period of 2022.

The group on the Nigerian Exchange Limited (NGX) announced N135.44 billion profit after tax, which was an increase of 52.6 per cent, from N88.74 billion reported in the first half (H1) 2022.

The published results showed a set of impressive performance, affirming the group’s steadfast commitment and prominent industry standing in delivering sustainable returns to stakeholders.

The management of Access Holdings proposed a dividend of N0.30 for every share of 50 kobo and it would be paid to shareholders on October 19, 2023.

From the profit & loss figures, Access Holdings reported a robust gross earnings figure of N940.3 billion, reflecting an impressive year-on-year (y/y) growth of 58.9 per cent, from N591.8 billion reported in H1 2022.

The substantial surge was driven by driven by a combination of 63 per cent growth in interest income and 51.9 per cent increase in non-interest income.

In a demonstration of the trust and confidence reposed in the institution by its customers, Access Holdings also witnessed a significant 35 per cent year-to-date growth in customer deposits, concluding the half-year at a commendable N12.5 trillion.

This growth was inclusive of all business segments, firmly solidifying the Group’s stature as the largest financial institution in Nigeria by total assets.

Access Holdings’ synergies across its business verticals yielded remarkable results, as the company experienced a 39 per cent year-on-year increase in total assets and a 40.6 per cent year-on-year rise in shareholders’ funds. As of the mid-year point in 2023, its total assets and shareholders’ funds stood at N20.9 trillion and N1.7 trillion, respectively.

These striking figures underscore the efficacy of the Group’s strategic approach and its ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services, operational in twenty countries across four continents.

Commenting on the results, Group Chief Executive Officer, Access Holdings, Herbert Wigwe in a statement said, “Our growth plans for the African continent remains firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.

“Continuing with our 5-year cyclical strategy, our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity` among all stakeholders.”

Notably, the Group’s Pensions business surpassed the N1 trillion in Assets Under Management (AUM) milestone, thereby ranking as the fourth largest PFA by AUM and second largest by the number of registered retirement savings accounts (RSAs).

“Furthermore, its payments vertical, Hydrogen, processed over N3 trillion in transactions, achieving a 407 per cent month-on-month growth in point of sale (POS) transactions and 99 per cent system uptime on account switching within the period.”

Despite operating in a high inflationary environment, Access Holdings improved its cost-to-income ratio (CIR) by 4.9 per cent year-on-year, accomplished through prudent adjustments in personnel costs, effective management of regulatory fees, and continued investments in technology to enhance cost efficiency and improve the overall user experience.

In terms of regulatory ratios, the Group displayed a robust liquidity position and capital adequacy, surpassing regulatory thresholds with a liquidity ratio (LR) of 50per cent and a capital adequacy ratio (CAR) of 19.1 per cent.