Access Bank Plc has released its unaudited financial statements for the period ended September 30, 2019, which clearly show positive figures across most financial indicators.
The breakdown indicates that Access Bank generated N210.21 billion in net interest income as at the period ended September 2019. This represents a 70.98% increase compared to the nine months period of 2018 when the lender recorded N122.94 billion.
It also recorded Profit before Tax of N103.10 billion as profit before tax, up from N70.26 billion, which represents an increase of 46.74%.
The lender recorded a profit after tax of N90.73 billion for the nine-month period of 2019, compared to N62.91 billion recorded in the corresponding period for 2018. This represents a 42.22% increase in profit.
The bank’s Earnings Per Share of N2.18 as at the end of the third quarter of 2018 moved up to N2.79 as at the end of the third quarter of 2019.
Also, non-interest income grew by 3.3% y/y to NGN97.74 billion, driven by fees and commissions income (+49.5% y/y to NGN56.01 billion). Consequent, on the increased income from both funded and non-funded sources, operating income settled 42.1% higher year-on-year.
In the same vein Operating Expenses grew significantly by 39.8% y/y, pressured by increased costs related to the merger. Regulatory costs increased significantly due to the expansion in assets from the merger – AMCON levy (+29.5% y/y to NGN22.66 billion); NDIC premium (+39.9% y/y to NGN8.99 billion –, while personnel costs (32.0% y/y to NGN54.70 billion), among others, also spiked during the period. Nonetheless, given the expansion of operating income relative to operating expenses, the bank’s cost-to-income ratio (ex-LLE) settled lower at 65.3% relative to 66.4% in the prior year. This was enough to drive a substantial increase in profitability, with profit-before-tax and profit-after-tax growth settling higher by 46.7% y/y and 44.2% y/y respectively.
According to analysts the bank’s macro-prudential ratios are above par, with only the non-performing loans ratio settling above the regulatory limit (6.3% relative to 5.0% statutory limit). While NPLs declined from 6.4% as at H1-19, this could be adduced to the 4.0% growth in total loans over the quarter. All other ratios are settled well above regulatory minimums; Liquidity ratio (48.5% relative to 30.0%), Capital Adequacy (20.3% relative to 16.0%). Also, we note that the bank’s current reported loans to deposit ratio (67.4%) is above the new minimum LDR of 65.0%.