Access Bank grows deposit to N1.33trn

Access Bank Plc. has announced its audited result for the financial year ended December 2013. Analysis of the results released on the floor of the Nigerian Stock Exchange (NSE) yesterday validates the bank’s capacity for sustainable growth.

The results showed an increase in its deposit base from N1.201 trillion N1.33 trillion, representing 11 per cent growth over last year’s figure while loan book rose by 33 per cent from N609 billion in 2012 to N810 billion in 2013, demonstrating commitment to empower critical sectors of the economy. The performance for the financial year under review is a strong testament to Access Bank’s position as one of Nigeria’s leading Tier 1 banks.

Meanwhile, Access Bank’s earnings grew to N206.7 billion from N206, while it recorded an improvement in its cost of funds from 4.5 per cent to 4.6 per cent with Non-Performing Loans (NPL) ratio decreased to 2.7 per cent from 5.0 per cent, owing to the bank’s enhanced risk management framework.

It posted a Profit Before Tax (BPT) of N44.9 billion, which is a 3.4 per cent decrease compared to the N46 billion recorded for the corresponding period in 2012. This is, however, attributable to regulatory changes in the operating environment, some of which include raising of the Cash Reserve Requirements (CRR) on public sector deposits to 50 per cent from 12 per cent reduction and removal of a number of fee income lines such as ATM and CoT charges as well as the increase in AMCON levy from 0.3 per cent to 0.5 per cent, among others.

Commenting on the bank’s performance, the Group Managing Director, Herbert Wigwe, said, “Access Bank’s 2013 earnings were impacted by several regulatory changes in the Nigerian banking sector. The bank’s balance sheet structure during the period further constrained growth and limited the yield on our earnings asset. Despite the difficult operating environment, the bank grew its loan book to position it for improved earnings, while driving deposit mobilisation from targeted segments to further reduce cost of funds. We also saw an increase in our non-interest income. As the business continues to grow, risk management remains fundamental to its philosophy evidenced by the reduction in the NPL ratio.

“I am particularly excited about the next phase of the bank’s evolution. Having articulated our five-year strategy plan, we began execution by re-aligning our SBUs to ensure that customer service and delivery are improved at all levels. With our businesses realigned, we are now placing greater emphasis on providing services geared towards women and SMEs in Nigeria, as they underpin the next phase of economic growth.

“Infrastructure financing is another key focus for us going forward. Throughout the next phase, we will continue to invest in technology to ensure that we build a customer experience that is both innovative and sustainable.”

He assured the bank would still maintain its commitment to maximising shareholder value with a dividend payout of 60 kobo per share following its payment of an interim dividend of 25 kobo. The sum of 35 kobo per share has been proposed as final dividend.

In the evolution of its corporate strategy for 2013 – 2017, it has identified and commenced cultivation of business areas that will guarantee steady earnings in conformity with its sustainable growth agenda. The bank has embarked on aggressive re-activation of accounts within its retail customer base and focuses concurrently on financing the needs of its corporate and commercial customers.

Also, its Group Deputy Managing Director/COO, Obinna Nwosu, who commented on the future of the bank and provided highlight on how the strategy will continue to be met said, “this past year, the bank recalibrated its operating model as we leveraged on unique value propositions targeted at growing segments in the economy.

“We launched and completed key projects aimed at increasing our efficiency and improving our customer service over the long run. These include the upgrade of our IT platform to enhance operational capabilities to support our multi-channel strategy and the revamping of our sales force model to ensure we better improve on customer engagement and utilise marketing opportunities.