Access Plc Boosts Profit by 53%, Proposes 30k Dividend

Access Holdings Plc boosted its profit by about 53% year on year to N135.441 billion in the first half of 2023 from N88.7 billion in the comparable period, according to its latest interim financial statement filed with the regulators.

As a result, Access Plc’s earnings per share jumped to 374 kobo in the period, from 252 kobo in the comparable period. The Board of Directors proposed an interim dividend of 30 kobo per share.

The group reported that its gross earnings spiked to N940.311 billion in the same period, rising by about 60% when compared with about N592 billion that was reported in the comparable period last year.

According to the group interim financials, interest income surged to N596.136 billion in the first six months of the year, translating to 74% year-on-year growth when compared with N342.53 billion reported in the comparable period in 2022.

Also, payments to fund providers inched upward to N382.598 billion from N174.80 billion due to a switch to a high-interest rate environment that started in the second quarter of 2022.

On the non-interest related business side, the group said in its financials that fee and commission income grew to N125. 021 billion in the first half of the year, a significant uptick from N81.100 billion in the comparable period in 2022.

“Fees and commission expenses are fees charged for the provision of services to customers transacting on alternate channels platform of the Group and on the various debit and credit cards issued for the purpose of these payments”, the interim financial statement explained.

They are charged to the Group for services rendered on Internet banking, mobile banking and online purchasing platforms. The corresponding income lines for these expenses include the income on cards (both foreign and local cards), online purchases and bill payments included in fees and commissions.

Also, fees and commission expenses grew in line with the increased activity level, settling at about N37 billion. Fees and commission expenses include the cost incurred to the group for providing alternate platforms for the purposes of Internet banking, mobile banking and online purchases. It also includes expenses incurred by the Group on the various debit and credit cards issued.

Overall, the net interest income of the group came stronger than the previous year, settling at N224.239 billion in the first half of the year, from N197.50 billion 12 months ago.

The financial services company reported a significant surge in non-interest revenue in the first half of the year due to an increased footprint in Nigeria and other African markets. Its interim results for the half year showed that net fees and commission surged by 59% to N88.026 billion from N55.438 billion in the equivalent period last year.

Its foreign exchange revaluation gain was N192.047 billion, up by 10% from N128.253 billion, a development that was driven by the devaluation of the Nigerian naira in June 2023. The group’s unrealised foreign exchange gain was valued at N244.335 billion over its unhedged FX items, up from N52.836 billion reported in the first half of 2022.

The group result showed that banks and electronic transfer charges inched higher to N5.573 billion in the first half of 2023 from N4.007 billion in the comparable period. Ebanking expenses surged to N31.423 billion in the same period, from N21.656 billion.

Pretax profit came stronger at N167.810 billion from N97.79 billion 12 months ago. Higher tax expenses reduce the strength as the group closed the period with a net profit of N135.441 billion from N88.887 billion in H1:2022.

Interim dividend

The Board of Directors proposed an Interim Dividend of 30 Kobo per ordinary share of 50 Kobo each on the 35,545,225,622 issued ordinary shares of 50k each payable to shareholders on the register of shareholding at the closure date of July 27, 2023.

For hedges of foreign currency liabilities, the Group said it entered into hedge relationships where the critical terms of the hedging instrument are closely aligned with the terms of the hedged item.

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