By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s Access Bank Plc Wednesday announced a -22.38 percent (-22.38%) fall in profit after tax (PAT) for its 2013 Half Year Report.

From the result announcement of the bank to the Nigerian Stock Exchange (NSE) and obtained by InvestAdvocate, to record the fall of -22.38% in PAT, the bank posted N20.713 billion in half year of 2013 compared to N26.688 billion recorded in the same period of 2012; showing a drop of -22.38%.

Similarly, profit before tax (PBT) also dipped from N30.206 billion in the half year of 2012 to N26.090 billion in review period of 2013; indicating a dip 0f -13.62%.

Gross earnings for the period was N104.127 billion in the half year of 2013 compared to N109.959 billion in the same period of 2012; representing a fall in gross earnings of -5.30%.

According to Investment One Research on the Access Bank’s 2013 Half Year Report, income and earnings growth was weak from a year on year (YoY) on view but mixed from a quarter on quarter (QoQ) perspective.

According to the Investment One report, PAT growth came in at 8.9% q/q to N10.79 billion from N9.92 billion, though fell 22.38% y/y due to a jump in effective tax rate to 26.3% from 13.4% in Q1’13. We however, consider the q/q growth from Q1 level a welcomed improvement.

The Investment One Analysts affirmed that what they liked is the 8.9% q/q improvement in PAT alongside the 27.5% q/q growth in net income.

In terms of valuations, Investment One’s report says that the stock fell 0.91% to close N10.90 at the end of Wednesday’s trading. “From a YtD view, ACCESS had rallied 20.44% underperforming the benchmark index by 9.0%. At current market price, the bank is valued at 1.04x P/BV and 6.76x P/E multiples,” the report said.

Also, Access Bank maintained its half year 25 kobo interim dividend.  Closure and payments are scheduled for 4th and 17th September, 2013.  We expect the stock to underperform in the interim as market ruminates on these results.