Thumb Up:Access Bank Plc Profit Rise To N160 Billion In 2021 Financial Year

 

Access Bank, however, grew its income from commission and fees rising 36.40% to N159.18 billion year

 Access Bank Plc records profit of N160 billion in full-year 2021

Access Bank, Zenith Bank, others take the Equities Market up by N35.44 billionNigerian lender, Access Bank Plc, has released its 2021 Full-year financial result, which revealed a profit of N160 billion in 2021. This reflects a 51.13% increase year on year.

The bank also reported earnings per share of N4.58, a 52.16% growth from the N3.01 reported a year earlier in 2020. Access Bank Plc has grown its profits by 167% in 4 years since hitting N60 billion in 2017 with the profit now touching roughly N160 billion.

The statement revealed that in FY 2021, Net interest income grew by 14.64% from N262.95 billion to N301.46 billion in the current period. Access Bank’s profit performance is on the back of all margin growth as income from interest, trading income and fees and commission income all appreciated year on year.

Key highlights of the results

The Nigerian Lender earned N601.70 billion, from its lending business as Interest income grew by 22.99% from N489.22 billion.

Despite a 32.3% spike in loan losses, net interest income after impairments still appreciated by 9.09% to stand at N218.25 billion.

Access Bank, however, grew its income from commission and fees rising 36.40% to N159.18 billion year on year and also generating a total of N166.10 billion in trading income on securities representing an impressive 423.35% increase year on year.

However, net gain on financial instruments depleted by 64.66% to be recorded as N42.46 billion, on the back of a N136 billion loss on non-hedging derivatives.

The bank’s e-banking income raked in N66.28 billion, representing a 18% spike from N56.09 billion in 2020. This suggests that the bank has improved in its utilization of the e-banking channels in the delivery of financial services to its customers.

In addition, the group also grew its deposits from customers by a whopping 24.47% to N6.95 trillion while its total assets are now N11.73 trillion, more than twice the bank’s total assets in 2018. Net assets rose 38.03% to N1.03 trillion.

Access Bank Plc last traded at N10.40 per share and its market capitalization stands at N369.67 billion as of Thursday, March 17, 2022. Year-to-date performance shows that the share price of the company has appreciated by 11.83%.

The bank’s Board of Directors have proposed a final dividend per share of N0.70 per share, to be paid on each of the 35,545,225,622 issued ordinary shares and payable to shareholders on the register of shareholding at the closure date.

The company had earlier paid an interim dividend of N0.30 kobo in September 2021, hence bringing the total dividend for the financial year to N1.00 kobo.

The proposed dividend will be subsequently subjected to withholding tax at the time of payment.

Based on its current share price, Access Bank Plc’s dividend yield is about 9.62%.