Access Bank Plc has released its group audited results for the Full Year (FY) ended December 31, 2020 which shows solid and resilient top-to-bottomline figures despite a challenging economic and regulatory landscape.
The impressive result is an attestation to the bank’s long history of resilience, scale, dedicated people and sustainable business model.
Gross Earnings rose 15 percent year on year (y/y) to N764.7billion in FY 2020, (FY 2019: N666.8billion), with interest and non-interest income contributing 64percent and 36percent respectively. This is testimonial to the effectiveness of the bank’s strategy and capacity to generate sustainable revenue.
Profit Before Tax (PBT) for the period rose by 13percent y/y to N125.9billion (FY 2019: N111.9billion).
Profit After Tax (PAT) also grew by 13percent y/y to N106billion from N94.1billion in FY 2019, on the back of a 32percent y/y growth in Operating Income which offsets the rise in Impairment Charges and Operating Expenses.
The assets base of the Group remained strong and resilient with Total Assets of N8.68trillion in December 2020, a growth of 22percent year to date (YtD) from N7.14trillion in December 2019. Net Loans and Advances totaled N3.61trillion as at December 2020 (December 2019: N3.06trillion).
Non-Performing loans (NPL) ratio stood at 4.3percent as at December 2020 (December 2019: 5.8percent), on the back of a N105billion write-off and recoveries in the period.
Profit Before Tax stood at N125.9billion despite the high cost of operating the enlarged franchise and the increase in net impairment charge of near N43billion arising principally (~50percent of net impairment) from a Structured Trade Finance (STF) portfolio in the Access Bank UK.
The STF impairment is one-off/COVID related and recoverable over the next 12-18 months against insurance cover from world class insurers.
“We also recorded consistent growth in our retail banking business, leading to a 5.8million growth in customer sign-on during the year via our financial inclusion drive and retail revenue of N177.2billion (FY 2019: N107.8billion). Customer deposits grew by 31percent to N5.59trillion in Dec 2020 (Dec 2019: N4.26trillion) with savings account deposits of N1.31trillion. Similarly, net loans and advances grew by 18percent to N3.61trillion (Dec 2019: N3.06trillion).
“”Our asset quality also continued to improve as guided to 4.3percent (Dec. 2019 5.8percent) as we intensified recovery efforts, undertook significant write off and leveraged our robust risk management practices This is expected to continue to trend downwards as we strive to surpass the standard we had built in the industry prior to the merger with Diamond Bank”, said Herbert Wigwe, CEO, Access Bank Plc.
He said “Our resilient business model ensured that the Group adapted to accommodate the resultant macro-economic downturn and headwinds of the COVID-19 pandemic”.
The strategic actions that the Bank has taken over the past 12 months evidence a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation. In 2020, Access Bank proudly opened its doors for business in Kenya and Mozambique, further increasing our footprints across the African Continent. Access Bank Zambia also concluded the acquisition of Cavmont Bank Limited in January 2021 and the Group recently announced the approval by relevant regulatory authorities for the acquisition of Grobank Limited, creating an inroad into the South African market in realization of the Group’s strategic ambitions.
In view of the opportunities that exist in the market, we will be transitioning to a HoldCo structure. The Bank has received the Approval-In-Principle from the Central Bank of Nigeria for the restructuring and the HoldCo will consist of 4 subsidiaries in order to tap into the market opportunities that are available in the consumer lending market, electronic payments industry and retail insurance market.
Going into the fourth year of our 5-year cyclical strategy, our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner. Finally, I would like to thank our people, shareholders, and other stakeholders as we could not have achieved these results without their dedication, commitment, and support.
