Access Bank’s Pre-Tax Profit Surges to N348.9 Billion as Total Assets Hit N36.6 Trillion
- Access Holding Plc has reported a pre-tax profit of N348.9 billion in the first six months of this year
- The Access Bank parent company’s pre-tax profit during the first six months of this year represents a 108% yearly growth
- Analysts say the company’s growth is linked to a 226% growth in its treasury bills portfolio
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Access Holdings Plc, the parent company of Access Bank, posted a pre-tax profit of N348.9 billion for the first six months of 2024, as Nigerian banks continue to enjoy profits at high interest rates.
The holding company’s pre-tax profit during the first six months of 2024 represents 108% yearly growth from the N167.6 billion it posted in the same period in 2023.
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The company’s income and commission surges
Also, the group posted a 107.7% yearly profit growth after tax, which hit N281.3 billion in the first half of 2024 from N135.4 billion in the first half of 2023.
An essential part of the company’s success was the 37% growth in its total assets to N26.7 trillion at the start of the year.
The firm's interest income grew 116% yearly to N1.1.29 trillion in the first half of 2024, compared to the N596 billion recorded in the first half of 2023.
Access Holding also recorded a net interest income of N513.4 billion, marking a 129% growth from N224.2 billion in the first half of 2023.
The company also posted N251 billion in fee and commission income, a 101% growth from the N125 billion posted in the first half of 2023.
Also, during the half-year, the company posted net foreign exchange gains of N253.9 billion, and in the first half of 2023, it recorded a net FX gain of N244.3 billion.
Access Bank sees rise in bonds portfolio
The banking conglomerate has seen a rise in its investment securities portfolio, now valued at about N10.1 trillion. This represents an 88% growth from the N5.34 trillion recorded at the beginning of the year.
BusinessDay reports that most of the company’s growth is linked to a 226% growth in its treasury bills portfolio, which stands at a staggering N2.46 trillion compared to the N754.8 billion at the beginning of the year.
Access Holdings FGN bonds portfolio also rose by 211%, from N851.8 billion at the beginning of the year to N2.65 trillion during the period under review.
Access Holdings’ loan portfolio rose to N10.8 trillion during the H1 period, from N8 trillion at the start of the year.
It also conducted an N351 billion rights issue in July 2024, the results of which have yet to be disclosed.
Access Bank closing in on deal to buy another bank
Legit.ng earlier reported that Access Bank, one of Nigeria's leading financial institutions, is on the verge of completing the takeover of the National Bank of Kenya (NBK) subject to regulatory approval from the Central Bank of Kenya (CBK) and the Competitions Authority of Kenya (CAK).
Access Bank and KCB Group, the owner of NBK in March 2024, signed a binding agreement for the acquisition, which is 1.25x of the National Bank of Kenya's book value.
NBK's book value as of 2023 was out at $79.77 million, meaning Access Bank could pay around $100 million.
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Source: Legit.ng
