59% Growth:Access Holdings Publish Stunning N940.3 Billion Gross High First Half Earnings

59% Growth:Access Holdings Publish Stunning N940.3 Billion Gross High First Half Earnings

Access Holdings Plc recorded substantial growths in incomes and profitability in the first half with gross earnings rising by 59 per cent to N940.3 billion within the six-month period.

Key extracts of the audited report and accounts of Access Holdings for the first half ended June 30, 2023, released yesterday at the Nigerian Exchange (NGX), showed that profit before tax jumped by 71.4 per cent to N167.6 billion in first half 2023 as against N97.79 billion recorded in first half 2022.

Profit after tax increased by 52.6 per cent from N88.94 billion in first half 2022 to N135.4 billion in first half 2023.

Top-line analysis showed that gross earnings increased from N591.80 billion to N940.31 billion. Earnings per share thus improved from N2.52 in first half 2022 to N3.74 in first half 2023. The headline growth 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.

The balance sheet size rose by 39 per cent to N20.9 trillion by June 2023 while shareholders’ funds grew by 40.6 per cent from N1.23 trillion by December 2022 to N1.73 trillion in June 2023. Customers’ deposits rose by 35 per cent to N12.5 trillion.

The management of the company said the growth in deposits underlined the trust and confidence reposed in the institution by its customers, noting that the deposit growth was inclusive of all business segments. The expansion in assets base strengthens the group’s stature as the largest financial institution in Nigeria by total assets.

Group Chief Executive Officer, Access Holdings Plc, Mr. Herbert Wigwe said the first half performance underscores 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 20 countries across four continents.

He said Access Holdings’ synergies across its business verticals yielded remarkable results as shown by growths in incomes and balance sheet of the group.

“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 five-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,” Wigwe said.

He outlined that the group’s pensions business surpassed the N1.0 trillion in assets under management (AUM) milestone, thereby ranking as the fourth largest pension fund administrator (PFA) by AUM and the second largest by the number of registered retirement savings accounts (RSAs).

According to him, the group’s payments vertical, Hydrogen, processed over N3.0 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.

He pointed out that despite operating in a high inflationary environment, Access Holdings improved its cost-to-income ratio (CIR) by 4.9 per cent, 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.

Wigwe noted that the group’s regulatory ratios displayed a robust liquidity position and capital adequacy, surpassing regulatory thresholds with a liquidity ratio (LR) of 50 per cent and a capital adequacy ratio (CAR) of 19.1 per cent.

He said the results generally showed the group’s steadfast commitment and prominent industry standing in delivering sustainable returns to stakeholders.

Access transitioned into a holding company to drive rapid growth and become a full-scale ecosystem player offering interconnected services across customer needs. Established in 2022, Access Holdings Plc consists of the Access Bank Group; Access Pensions; a payment and switching services company; a digital lending company, and an insurance brokerage company.

The banking vertical serves its various markets through four business segments: retail, business, commercial and corporate, and has enjoyed what is it arguably Africa’s most successful banking growth trajectory in the last 18 years, becoming one of Africa’s largest retail banks by customer base and Sub-Saharan Africa’s largest bank by total assets.