Culled—Proshare

August 30, 2017/Proshare Markets

Access Bank Plc held its H1’17 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.

The management of the bank in its IR presentation gave a group snapshot of the bank with some fundamental statistics provided. The bank currently has seven (7) subsidiaries and three (3) Rep offices; 3,854 professional staff with a male to female ratio of 54% to 46%; and a customer base of about 8m plus. The bank’s shareholders’ funds is put at N480bn and has an outstanding shares of 28.9bn.

The bank’s half year 2017 financial results revealed that it recorded 42% YoY growth in Gross Earnings; 21% growth in Net Interest Income; 29% growth in Operating Income; 18% growth in PBT and 17% growth in PAT while its cost to income ratio stood at 62.7% in H1 2017 from 58.4% in H1 2016.

The bank recorded stability in its asset quality which is reflective of its disciplined approach to risk management while its Capital Adequacy  Ratio (CAR)  increased  to 21.6%, up 60bps from 21% in Dec’16, reflecting the Group’s robust capacity for growth.

In a nutshell, below are the key takeaways from the H1 2017 earnings presentation made by the bank’s management;

· The bank in its H2’17 corporate strategy outlook stated that it will conclude the development of and commence the implementation of the Group’s new 5 year (2018-2022) Rolling Plan.

· Subsidiaries’ contributed 25% to total Group deposits, largely made up of low-cost savings.

· FCY loans to total loans closed  at 40% in Jun’17, down 200bps from 42% in Dec’16

· The bank’s liquidity Ratio improved 180bps y/y to 45.4% in Jun’17 (Dec’16:43.6%), reflecting the Bank’s improved ability to meet short-term obligations; and

· In H2’17, the bank will reinforce the implementation of its cost reduction initiatives in order to improve the bottom-line despite high inflationary environment.