Access Bank posts Profit Before Tax of N74 billion in H1 2020

Access Bank Plc has declared a Profit Before Tax (PBT) of N 74.306 billion in its half year, 2020 result up from N 72.964 billion recorded in H1, 2019. This showed an increase of 1.84% and increase in revenue of N 396.8 billion for H1, 2020.

This was disclosed in the result sent to the Nigerian Stock Exchange. However, the positive outlook of the PBT and revenue were eroded by a corresponding increase in Net impairment charges by 237.43% from N4.88 billion to N 16.47 billion year-on-year.

The increase in PBT was largely due to an increase in the balance of cash flow from operating activities, while a decline in economic activities due to the pandemic negatively affected the tier-1 bank as reflected by the high impairment cost.

Net gains on financial instruments were up by 3000% and was majorly supported by a gain of N103.25 billion on derivatives instruments, it relates to gains on forward, swap and future contracts entered into by the bank.

The transaction also resulted in a short position on foreign currency financial position which gave rise to the unrealized foreign exchange trading loss on revaluation and the foreign exchange trading loss, arising from the near legs of the contracts.

Other financial indicators such as Profit After Tax, Cash and Bank balances, Net Interest Income and Earnings Per share, etc. all declined.

The Profit After Tax (PAT) declined by 1.35% from N 61.87 billion recorded in H1 2019 to N 61.03 billion recorded in H1, 2020.

On operational basis, the Cash and Bank balances with banks declined by 8.1% from N 723.06 billion recorded at the end of 2019 to N 663.91 billion in H1 2020.

Net Interest Income declined by approximately 18.7% to N126.21 recorded in H1 2020 from N155.15 billion in H1 2019. Net impairment charges however spiked.

Earnings Per Share: Both Earnings per share (basic) and Earnings per share (diluted) all declined by 8.95% and 9.09% respectively.

Access Bank Plc also announced an interim dividend of 0.25K and its current share price stands at N6.45 as at the close of gong on Friday.