Access Holdings Plc posts 71.39% increase in pre-tax profit in H1 2023

 Access Holdings Plc posts 71.39% increase in pre-tax profit in H1 2023

Access Holdings Plc, one of the leading financial services providers in Nigeria, has released its half-year results for the period ended June 30, 2023. The results show that the company recorded a remarkable growth in its pre-tax profit, which rose by 71.39% year-on-year, reaching N167.601 billion.

The impressive performance of the company was driven by a significant increase in its gross earnings, which grew by 58.89% year-on-year, reaching N940.311 billion. The main contributors to the gross earnings were the interest income and the fair value and foreign exchange gain.

The interest income, which represents the income generated from loans and advances to customers and investments in securities, increased by 63% year-on-year, reaching N606.837 billion. This reflects the company’s robust lending and investment activities in the first half of 2023.

The fair value and foreign exchange gain, which represents the income derived from equity investments and trading in foreign exchange and fixed-income securities, increased by 49.74% year-on-year, reaching N192.047 billion. This reflects the company’s strong market position and expertise in capital market operations.

The company also recorded a growth in its net fee and commission income, which increased by 58.78% year-on-year, reaching N88.026 billion. This represents the income earned from various services rendered to customers, such as account maintenance, electronic banking, trade finance, and others.

However, the company also experienced a significant increase in its interest expense, which grew by 118.88% year-on-year, reaching N382.598 billion. This represents the cost of funds borrowed from depositors and other sources. The high interest expense was mainly due to the growth in customer deposits, which increased by 35.20% year-on-year, reaching N12.508 trillion.

As a result of the high interest expense, the company’s net interest income, which is the difference between interest income and interest expense, grew at a slower rate of 13.54% year-on-year, reaching N224.239 billion.

The company also reported a marginal increase in its net impairment charge on financial assets, which increased by 0.85% year-on-year, reaching N37.175 billion. This represents the provision made for possible losses on loans and advances to customers and other financial assets.

The company’s profit for the period, which is the net income after deducting tax and other expenses, increased by 52.37% year-on-year, reaching N135.441 billion.

The company’s total assets increased by 39.04% year-on-year, reaching N20.853 trillion. The main components of the total assets were loans and advances to customers, which increased by 31.54% year-on-year, reaching N6.71 trillion; and cash and balances with central banks, which increased by 5.47% year-on-year, reaching N2.078 trillion.

The company’s shareholders’ equity increased by 26.66% year-on-year, reaching N1.209 trillion. This represents the value of the owners’ stake in the company.

The company’s earnings per share increased by 52.37% year-on-year, reaching N4.51.

The company’s board of directors declared an interim dividend of N0.50 per share for the half-year ended June 30, 2023.

The company’s management expressed satisfaction with the half-year results and attributed them to the company’s resilience, innovation, and customer-centricity.

The company’s management also assured its stakeholders of its commitment to delivering sustainable value and enhancing shareholder returns in the remaining part of the year and beyond.