By Abdulquddus OKELE InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s tier one (1) lender, Access Bank Plc said on Wednesday its post-tax profit for the period ended December 31, 2017 declined13.2 percent to N61.99 billion from N71.43 billion recorded a year ago.

In the same vein, pretax profit dropped 11.4 percent to N80.07 billion from N90.33 declared the same period 2016.

Gross earnings of Access Bank increased from N381.32 billion in 2016 end to N459.07 billion in the review period of 2017, showing an increase of 20.4 percent, the lender in a filing with the Nigerian Stock Exchange (NSE).

A statement from the Bank said growth in gross earnings was boosted by a 29 percent increase in interest income to N319.9 billion in 2017, from N247.2 billion in Full Year (FY) 2016 whilst net interest income grew by 17 percent from N163,452 billion in FY 2017, from N139,148 billion in the comparative period of 2016. Similarly, Non-Interest Income grew 4 percent to N139.1billion, in FY 2017 from N133.4 billion in 2016, leading to an 11 percent increase in the Group’s operating income to N302,596 billion in FY 2017, from N272,605 billion in FY 2016.

According to the lender, the growth in the Group’s earnings is underlined by an expansion in its core business, on the back of an enhanced asset book. Loans and advances grew 11 percent to N2,064 trillion in 2017, from N1,855 trillion in December 2016. Total assets grew 18 percent to N4,102 trillion in December 2017, from N3,484 trillion in the corresponding period in 2016. Additionally, the Group recorded an increase of 13 percent in Shareholder returns of N515 billion in December 2017, from N454 billion in the corresponding period in 2016.

“Although the Group posted significant growth in earnings, the adverse lingering effects of the macro on asset quality in the industry led to the Bank taking prudent provisions in the course of the year, thereby dampening profitability, as Profit before tax declined 11 percent to N80.1 billion in FY 2017 fromN90.3 billion in FY 2016. Nonetheless, Access Bank’s fundamentals remain strong and the Group remains poised for sustainable growth in the coming periods,” the statement added.

Also, the board of directors of the Bank has proposed a final dividend of 40 kobo per share coupled with the 25 kobo per share interim declared earlier; totaling 65 kobo per share dividend for the 2017 audited year end.

Access Bank says qualification date is April 12, 2018; while closure date has been scheduled for April 13 to April 18, 2018 and Annual General meeting (AGM) date has been scheduled for April 25, 2018.

Commenting on the results, Herbert Wigwe, Group Managing Director said, “Our operating performance in 2017 was impacted by the residual effects of macro-economic conditions of 2016, characterised by slow economic expansion and adverse credit conditions, which resulted in making conservative provisions on our loan book.Despite the macro and regulatory headwinds, our underlying business remained strong as reflected in the gross earnings growth of 20 percent to ₦459 billion in 2017. We grew our loan book to position it for improved earnings, whilst driving deposit mobilization from targeted segments to diversify our funding base.”

According to Wigwe, the year 2017 was pivotal for the Bank, as it concluded its 2013-2017 corporate strategic plan. “Its successful implementation was hinged on discipline, hard work, and an unwavering commitment to our set objectives. I am particularly excited about the next phase of the Bank’s evolution centred on an integrated global franchise. The execution of the 2018-2022 strategy commences with focus on deepening our retail offerings, underpinned by strong digital and payment solutions. Throughout the next phase, we will continue to invest in technology as we establish a universal payments gateway with an ecosystem of local and international partnerships,” he added.

Access Bank’s capital and liquidity levels of 22.5 percent and 47.3 percent respectfully remained robust, well above the required regulatory minimum, providing a strong buffer against the macro challenges and room to expand its business.

Shares of Access Bank at the close of the session’s trading on the Nigerian bourse dropped 2.08 percent to N11.75 per share from N12.00 traded the previous session; losing 0.25 kobo per share.