Access Bank Boost Q3 2020 Bottom-line Profit By 16% On Gains On Financial Instruments, Fees

Access Bank boost Q3 2020 bottom-line profit by 16% on Gains on Financial Instruments, Fees
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Access Bank Plc, Q3 2020 Unaudited Consolidated Financial statement shows a 16 percent Year-on-Year (YonY) growth in Profit After Tax (PAT) for the period ended September 2020. Analysis of the result revealed that a 2560 percent YonY rise in Gains on Financial Instrument to N83.5 billion was majorly responsible for the bottom-line profit growth of the bank for the nine months ended September 2020.

The Bank’s Net Interest Income dropped by 7 percent YonY to N196.2 billion: The drop in Interest Income was occasioned by a 9 percent YonY drop in Interest Income to N317.7 billion for the period, from N349.2 billion for the corresponding period in 2019. The 8 percent drop in Interest Expenses to N179 billion from N194.8 billion could however not salvage the Net Interest position.

On the Non-Interest Income, Net Fee and Commission Income, Gains on Financial Instrument and Net Trading Income contributed significantly to the 106 percent growth from N97.7 billion to N201.5 billion in the nine months period under review. The three lines grew by 28 percent, 2560 percent, and 145% YonY respectively for the third quarter of 2020.

The negative growth in the top-line Interest Income (-7% YonY), Credit Impairment Charges (223% YonY), and the Operating Expense (26% YonY) were offset by the Non-Interest Income YonY growth (106%) which culminated into the bottom line Profit Before Tax growth of 16% YonY…

Here are the other highlights of the Q3 2020 results released by Access Bank Plc

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Income Statement.

  • Net Interest Income of N196.3 billion, down 7% YonY, Sept 2019 – N210.2 billion
  • Non-Interest Income of N201.5 billion, up 106% YonY, Sept 2019 – N97.7 billion
  • Impairment Charge for Credit Losses up 223% YonY to N34.2 billion, Sept 2019 – N10.6 billion
  • Operating Expenses of N246.9 billion up 26% YonY, Sept 2019 – N196.6 billion
  • Profit Before Tax up 16% YonY to N116.6 billion, Sept 2019 – N100.8 billion
  • Profit After Tax for the 9-month period up 16% YonY to N102.3 billion from N88.4 billion
  • Earnings Per Share also up by 7% YonY to 290 kobo from 271 kobo

Statement of Financial Position

The Balance Sheet size of Access Bank Plc had an impressive 9-month digit growth for the period ended 30 September 2020. Total Assets grew 11% YTD; Deposit from Customers was also up by 23%; Customer Loans and Advances was up by 6% YTD, while Total Equity grew by 12%.

  • Total Assets up 11% year to date (YTD) to N7.9 trillion, Dec 2019 – N7.1 trillion
  • Customer Loans and Advances up 6% YTD to N3.1 trillion, Dec 2019 – N2.9 trillion
  • Deposits from Customers up 23% YTD to N5.3 trillion, Dec 2019 – N4.3 trillion
  • Owner’s Equity up 12% YTD to N679.5 billion, Dec 2019 – N606.7 billion

 


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