Access Holdings Reports Increase in Profit to N458 billion as It Plans to Open New Offices
- Access Holdings’ net profit for the first three quarters of the year rose significantly by approximately 83%
- Unaudited financial statements showed that notable growth was also seen in other important revenue sources
- The net profit margin, or the portion of income that eventually turns into profit after taxes, was 13.4%
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Access Holdings' net profit increased by over 83% during the first three quarters of the year as it experienced a significant increase in interest revenue.
Source: UGC
According to its unaudited financial statements, notable growth was also seen in other important revenue sources.
By allocating a significant portion of its resources to expanding its market share outside of Nigeria, Access Holdings is taking the long view and aiming to rank among the top five banks on the continent by 2027.
Net interest income was N844.8 billion after interest expenses consumed up to 64.8% of the N2.4 trillion in interest the organisation earned during that time.
The provision made by Access Holdings for bad loans and other impaired financial assets increased by 134.5%, indicating that high lending rates can occasionally cause headaches.
Because the Central Bank of Nigeria decided to raise the reference lending rates by a total of 15.8% since May 2022 in order to combat inflation, lenders in Nigeria have been demanding high fees for loans. Lenders have benefited greatly from it, but many businesses are being forced to the limit.
Due to an increase in credit-related fees and e-banking revenue, fees and commissions during the review period nearly doubled to N401.5 billion.
The post-tax profit increased from N250.4 billion to N457.7 billion, while the pre-tax profit increased by 89.6% to N558.2 billion.
Roosevelt Ogbonna, CEO of its commercial banking subsidiary, told reporters in Lagos on Monday that the financial services giant, which currently has assets worth N41.1 trillion, is considering issuing dollar-denominated securities in two tranches to spur expansion and satisfy the new capital requirements for Nigerian banks.
Access Bank speaks on opening new office
Legit.ng reported that in order to meet central bank capital requirements and finance its expansion aspirations, Access Bank is thinking about selling dollar-denominated securities on the domestic market.
Roosevelt Ogbonna, the managing director of Access Bank Plc, the largest lender in West Africa in terms of assets, stated that the bank is aiming to issue two tranches of dollar-denominated instruments, although he did not specify the amount.
One of the batches will be offered on the general market, while the other will be targeted at development financial institutions, Ogbonna said during a conference on Monday in Lagos, Nigeria's economic hub, according to a Bloomberg report.
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Source: Legit.ng
