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Access Bank CAR hits 21%

FOLLOWING its implementation of risk management framework, Capital Adequacy Ratio (CAR) of Access Bank Plc currently stands at 21 per cent and liquidity ratio at 43 per cent.

The CAR for banks in Nigeria stands at 10 per cent and 15 per cent for national or regional banks with international banking licence respectively.

According to the stress test conducted by the Central Bank of Nigeria (CBN), three big banks have fallen below regulatory capital requirements.

Analysis of the bank’s result for the financial year ended December 31, 2016 showed stable assets quality with non-perfoming loans and cost of risk ratios at 2.1 per cent and 1.2 per cent respectively.

This low ratio demostrates the effectiveness of the bank’s risk management culture and prudent approach to lending.

Besides, the group delivered resilient performance in the year under review with overall results reflecting growth.

It recorded a total revenue of 381.3billion and profit before tax of N90billion, an increase of 13 per cent and 20 per cent respectively.

Supporting this growth was a 32 per cent year on year increase in net interest income of N131. 1 billion, compared to N105. 4 billion recorded in the corresponding period of 2015, demonstrating the sustainability of its core business.

The bank’s reported a non-interest growth of three per cent to N133 billion in 2016 financial year, compared to N129billion recorded in the same period of 2015, which was driven by strong increase in fees and commissions.

Speaking on the results, the Managing Director of the bank, Mr Herbert Wigwe, explained that the revenue rose across all operating sections with significant support from the retail business, posting N12 billion in profit before tax and contributing 11 per cent to the group result.

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