of Africa’s largest banking groups, Access Bank Plc, has announced its audited
result for the financial year ended December, 2013. An analysis of the results
released on the floor of the Nigerian Stock Exchange today validated the Bank’s
capacity for sustainable growth.
increase in the Bank’s deposit base from N1.201 trillion N1.33 trillion, an 11%
growth over last year’s figure while its loan book rose impressively by 33%,
from N609bn in 2012 to N810bn in 2013, demonstrating the Bank’s resolve to
empowering critical sectors of the economy. The performance for the financial
year under review is strong testament to Access Bank’s positioning as one of
Nigeria’s Tier 1 Banks.
numbers also revealed that the Bank’s earnings grew to N206.7bn from N206.4bn
in 2012. Similarly, the Bank recorded an improvement in its cost of funds from
4.5% to 4.6% while Non-Performing Loans (NPL) ratio decreased to 2.7% from 5.0%
which is owed to the Bank’s enhanced risk management framework.
Profit Before Tax (BPT) of N44.9bn which is a 3.4% decrease compared to the
N46.bn recorded for the corresponding period in 2012. This is however
attributable to regulatory changes in the operating environment, some of which
of the cash reserve requirements (CRR) on public sector deposits to 50% from
12%, reduction and removal of a number of fee income lines such as ATM and CoT
charges as well as the increase in AMCON levy from 0.3% to 0.5% amongst others.
the Group Managing Director, Herbert Wigwe said “Access Bank’s 2013 earnings were impacted by several regulatory
changes in the Nigerian banking sector. The Bank’s balance sheet structure
during the period further constrained growth and limited the yield on our
earnings asset. Despite the difficult operating environment, the Bank grew its
loan book to position it for improved earnings, while driving deposit
mobilisation from targeted segments to further reduce cost of funds. We also
saw an increase in our non-interest income. As the business continues to grow,
risk management remains fundamental to the Bank’s philosophy evidenced by the
reduction in the NPL ratio.
excited about the next phase of the Bank’s evolution. Having articulated our
five year strategy plan, we began execution by re-aligning our SBUs to ensure
that customer service and delivery are improved at all levels. With our
businesses realigned, we are now placing greater emphasis on providing services
geared towards women and SMEs in Nigeria, as they underpin the next phase of
economic growth. Infrastructure financing is another key focus for us going
forward. Throughout the next phase, we will continue to
invest in technology to ensure that we build a customer experience that is both
innovative and sustainable.”
Bank will still maintain its commitment to maximizing shareholder value with a
dividend payout of 60kobo per share; following its payment of an interim
dividend of 25k, the sum of 35kobo per share has been proposed as final
strategy for 2013 – 2017, the Bank has identified and commenced cultivation of
business areas that will guarantee steady earnings in conformity with its
sustainable growth agenda. The Bank has embarked on aggressive re-activation of
accounts within its retail customer base and focuses concurrently on the
financing the needs of its corporate and commercial customers.
Director/COO, Obinna Nwosu who commented on the future of the Bank and provided highlight of how the strategy will continue to be met said “This
past year, the Bank recalibrated its operating model as we leveraged on unique
value propositions targeted at growing segments in the economy.
and completed key projects aimed at increasing our efficiency and improving our
customer service over the long run. These include the upgrade of our IT
platform to enhance operational capabilities to support our multichannel
strategy; and the revamping of our sales force model to ensure we better
improve on customer engagement and utilise marketing opportunities.
our business; we will continue to adapt to changing market trends to meet their
evolving needs.” We have enhanced products, services and systems; we also have effective
controls and outstanding people. All these together ensure that we are
delivering on our customer promise of speed, service and security”.
‘Primus’, an internet banking application for corporate customers and
introduced series of customer service initiatives to further transform customer
experience across its service platforms. By this, the Bank seeks to consolidate
its relationship with clients in indentified market segments while promoting
commercial Bank operating through a network of 350 branches and service outlets
located in major centres across Nigeria, Sub Saharan Africa and the United
Kingdom. Listed on the Nigerian Stock Exchange in 1998, the Bank serves its
various markets through 5 business segments: Corporate & Investment
Banking, Commercial Banking, Business Banking, Personal Banking, Operations and
Bank has over 800,000 shareholders including several Nigerian and International
Institutional Investors and has enjoyed what is arguably Africa’s most
successful banking growth trajectory in the last twelve years ranking amongst
Africa’s top 15 banks by total assets and capital.
part of its continued growth strategy, Access Bank is focused on mainstreaming
sustainable business practices into its operations. The Bank strives to deliver
sustainable economic growth that is profitable, environmentally responsible and