Nigeria: Access Holdings Plc reports profit of N57 billion in Q1 2022

Access Holdings Plc, has released its Q1 2022 financial result, which reveals a profit of N57.40 billion in Q1 2022. This reflects a 9.23% increase year on year.

The group also reported earnings per share of N1.63, a 9.40% growth from the N1.49 reported a year earlier in Q1 2021. Access Bank Plc has grown its Q1 profits by 160% in 4 years since hitting N22 billion in Q1 2018 with the profit now touching roughly N57.40 billion.

The statement revealed that in Q1 2022, Net interest income declined by 7.03% from N93.96 billion to N87.36 billion in the current period. Access Holdings’ profit performance is on the back of margin growth as income from interest, foreign exchange gains and fees and commission income all appreciated year on year.

Key highlights of its results

• The Nigerian lender earned N160.32 billion, from its lending business as Interest income grew by 27.27% from N125.97 billion.
• While loan losses grew by 9.17%, net interest income after impairments depreciated by 9.52% to stand at N73.67 billion.
• Access Bank, however, grew its income from commission and fees rising 44.54% to N56.30 billion year on year and also generating a total of N85.83 billion from net foreign exchange gains as against N1.08 billion year on year.
• However, net loss on financial instruments stood at N44.63 billion, on the back of an N85 billion loss on non-hedging derivatives.
• The group’s e-business income raked in N20.13 billion, representing a 12.33% spike from N17.92 billion in 2021. This suggests that the bank has improved in its utilization of the e-banking channels in the delivery of financial services to its customers.
• Also, credit-related fees and commissions stood at N21.15 billion during the period.
• In addition, the group also grew its deposits from customers by a whopping 7.76% to N7.49 trillion while its total assets are now N12.08 trillion. Net assets rose 4.77% to N1.08 trillion.

Access Holdings Plc last traded at N9.85 per share and its market capitalization stands at N350.12 billion as of Wednesday, April 28, 2022. Year-to-date performance shows that the share price of the company has appreciated by 5.91%.

The bank’s Board of Directors proposed a final dividend per share of N0.70 per share, to be paid on each of the 35,545,225,622 issued ordinary shares and payable to shareholders on the register of shareholding at the closure date.

The dividend which will be subjected to withholding tax is scheduled to be paid today, April 28, 2022.

Based on its current share price, Access Holdings’ dividend yield is about 7.11%.