Access Bank Plc has announced a 20 per cent leap in its earnings to N459.1billion for 2017, just as it is proposing a final dividend of 40 kobo after paying 25 kobo final dividend.
These are part of the highlights of its audited results for the full year ended December 31, 2017 released to the Nigerian Stock Exchange (NSE) on Wednesday.
The bank explained in a statement that the earnings represents an increase of 20 percent over the N381.3 billion recorded in the same period in 2016.
Details of the results show that gross earnings in interest income rose by a 29 per cent to N319.9 billion in 2017, from N247.2 billion in 2016, while net interest income grew by 17 percent from N163,452 billion in 2017, from N139,148 billion in the comparative period of 2016. Similarly, Non-Interest Income grew 4 percent to N139.1billion, in 2017 from N133.4 billion in 2016, leading to an 11 percent increase in the Group’s operating income to N302,596 billion in FY 2017, from N272,605 billion in 2016 financial year( FY).
The growth in the Group’s earnings is underlined by an expansion in its core business, on the back of an enhanced asset book. Loans and advances grew 11 percent to N2,064 trillion in 2017, from N1,855 trillion in December 2016.
Total assets grew 18 percent to N4,102 trillion in December 2017, from N3,484 trillion in the corresponding period in 2016. Additionally, the Group recorded an increase of 13 percent in Shareholder returns of N515 billion in December 2017, from N454 billion in the corresponding period in 2016.
Although the Group posted significant growth in earnings, the adverse lingering effects of the macro on asset quality in the industry led to the Bank taking prudent provisions in the course of the year, thereby dampening profitability, as Profit before tax declined 11 percent to N80.1 billion in FY 2017 from N90.3 billion in FY 2016. Nonetheless, Access Bank’s fundamentals remain strong and the Group remains poised for sustainable growth in the coming periods.
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