DESPITE challenging economic and regulatory landscape, Access Bank Plc has announced gross earnings of N764.7 billion for the financial year ended December 31, 2020.
The bank’s audited gross earnings show a 15 per cent improvement from the N666.75 billion posted for the comparative period of 2019. While the bank’s profit before tax stood at N125.9 billion, it also posted a non-interest income of N275.5 billion, a significant 112 per cent year on year (y/y) growth from 2019. This is despite the cost of operating its enlarged franchise.
According to Herbert Wigwe, the Group Managing Director and CEO of Access Bank Plc, the institution’s resilient performance “is testament to the effectiveness of our strategy and capacity to generate sustainable revenue.
“The strategic actions that the bank has taken over the past 12 months evidence a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation.
“In 2020, Access Bank proudly opened its doors for business in Kenya and Mozambique, further increasing our footprints across the African continent. Access Bank Zambia also concluded the acquisition of Cavmont Bank Limited in January 2021 and the Group recently announced the approval by relevant regulatory authorities for the acquisition of Grobank Limited, creating an inroad into the South African market in the realization of the group’s strategic ambitions.”
He disclosed that in view of the opportunities that exist in the market, the lender will be transitioning to a HoldCo structure.
The bank has received the approval-in-principle from the Central Bank of Nigeria for the restructuring and the HoldCo will consist of four subsidiaries in order to tap into the market opportunities that are available in the consumer lending market, electronic payments industry and retail insurance market.
Going into the fourth year of its five-year cyclical strategy, Wigwe said adding, “our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner.”
Access Bank recorded consistent growth in its retail banking business, reporting a 5.8 million growth in customer sign-on during the year through its financial inclusion efforts.
This increase in customer base led to a retail revenue of N177.2 billion, a 64.4 per cent increase from its FY 2019 figures of N107.8 billion.
The bank’s customer deposits also grew by 31 per cent to N5.59 trillion in December 2020 with savings account deposits standing at N1.31 trillion. Similarly, net loans and advances grew by 18 per cent to N3.61 trillion in comparison to its FY 2019 figures of N3.06 trillion.
The bank said that as it intensified recovery efforts, undertook significant write off and leveraged its robust risk management practices, its asset quality improved to 4.3 per cent compared to its 2019 report of 5.8 per cent and this is expected to continue to trend downwards as it strives to surpass the standard it had built in the industry prior to the merger with Diamond Bank.
Just last week, news filtered out that Access Bank invested around $60 million to acquire a stake in South Africa’s Grobank, to become the first Nigerian lender to venture in to South Africa.
Access invested both equity and debt in the South African bank, part of a regional expansion to tap into correspondent and trade banking deals on the continent, Herbert Wigwe told CNBC Africa Television.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
Cryptocurrency: Understanding The Craze, Threat
ON Friday, February 6, the Central Bank of Nigeria (CBN) rocked the boat with a circular that inadvertently highlighted how popular cryptocurrency transactions have become among Nigerians in recent years, judging by…
ICYMI: Yoruba, Hausa Teachers Needed In US
The US Embassy and Consulate in Nigeria has announced that the services of Yoruba and Hausa teachers are needed in the United States. According to the Public Affairs Section of the US Mission Nigeria…
Controversy Over Man Who Jumped From 7th Floor Of 1004 During EFCC Raid
The police in Lagos State have begun investigations into the circumstances surrounding the alleged death of a man at 1004 Estate, Victoria Island, who allegedly jumped from the 7th floor of one of the buildings. The man was…
INEC Lists Five Challenges Ahead Of 2023 Elections
AS politicians step up horse-trading ahead of subsequent elections, the Independent National Electoral Commission (INEC) has listed five main areas of likely challenges…
After Two Years, Daddy Freeze Apologises To Bishop Oyedepo
Daddy Freeze whose real name is Ifedayo Olarinde has apologised to Bishop Oyedepo who is the presiding bishop and founder of Living Faith Church aka Winners Chapel…
“Without allowing local governments to have autonomy, we cannot address poverty or employment in Nigeria.…
National Chairman of the All Progressives Congress (APC), Abdullahi Umar Ganduje, has dismissed defection rumours…
The Academic Staff Union of Universities (ASUU) has elected new national
Nigerians who wish to correct their NIN date of birth on the National Identification Number…
" failure of leadership in Nigeria in the past has caused the nation a lot…
Niger State Commissioner for Homeland Security, Brig. Gen. Bello Abdullahi (Rtd), has assured that Niger…
This website uses cookies.