Access Holdings Plc reports 71.39% jump in half-year pre-tax profits and declares 30 kobo interim dividend

Access Holdings Plc reported its 2023 Half-year results showing pre-tax profits grew by 71.39% year on year, reaching N167.601 billion. 

Key highlights H1 2023 vs. H1 2022:  

• Gross earnings; N940.311 billion +58.89% YoY  
• Interest Income N606.837 billion +63.00% YoY 
• Interest Expense; N382.598 billion +118.88% YoY  
• Net interest income; N224.239 billion +13.54% YoY  
• Net impairment charge on financial assets, N37.175 billion +0.85% YoY  
• Net interest income after impairment charges; N187.064 billion +16.45% YoY 
• Net fee and commission income N88.026 billion, +58.78% YoY. 
• Fair value and foreign exchange gain/(loss), N192.047 billion +49.74% YoY 
• Profit for the period N135.441 billion +52.37% YoY. 
• Loans and advances to customers N6.71 trillion +31.54%. 
• Cash and Balances N2.078 trillion +5.47% 
• Total Assets N20.853 trillion +39.04%. 
• Customers’ deposits N12.508 trillion +35.20%. 

Insights: Access Holdings’ significant growth in pre-tax profit in H1 2023 can be attributed to the substantial gains in net fair value and foreign exchange, primarily attributed to significant fair value gains on equity investments and gains from foreign exchange and fixed-income securities trading during the first half of 2023. 

• Also, it reported a 63% growth in interest income. This growth was primarily driven by increased interest income generated from loans and advances extended to customers and investments in securities. 

• On the flip side, the bank experienced a significant growth in interest expenses, primarily driven by higher interest expenses related to customer deposits, which grew by 33.31% year-on-year, reaching N318.526 billion. As a result, the bank’s net interest income growth moderated to 13.54% YoY. 

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