The share price of Access Bank Plc closed on full bid on Monday when its directors presented the audited financials for the year ended December 31, 2016, with a 53.86% rise in total comprehensive income (net profit), from which shareholders are being asked to approve the payment of N11.571bn as final dividend, which translates to 40 kobo per share, up from previous year’s 30 kobo.
The directors had paid out N7.231bn or 25 kobo interim dividend last year, bringing total dividend payout to 65 kobo, if the final dividend is approved at the Annual General Meeting (AGM) slated for March 29, 2017, same date the dividend is payable.
Gross earnings rose by N43.916bn, up by 13.01% from N337.404bn to N381.32bn of which interest income stood at N247.286bn, as against N207.802bn, while interest expense increased from N102.421bn to N108.138bn, leaving net interest income at N139.147bn from previous year’s N105.381bn.
Net impairment charge rose from N14.224bn to N21.952bn, following which net interest income after impairment charges climbed from N91.156bn to N117.194bn. Net fee and commission income soared to N54.863bn from N33.33.312bn; net gain on investment securities dropped to N55.051bn from N62.738bn; the fall in net foreign exchange income was even more significant, from N26.501bn to N3.597bn in 2016.
Other operating income stood at N19.944bn from N6.897bn; personnel expenses rose to N51.795bn from N42.346bn and other operating expenses to N94.413bn from N91.384bn, all of which left profit before tax for the year at N90.339bn from N75.038bn, just as tax for the period jumped by over 100% to N18.9bn from N9.169bn, following which profit for the year increased by N5.571bn or 8.45% to N71.439bn. Other comprehensive income rose to N32.06bn (as against the previous N338.704m in 2015), comprising N19.458bn unrealized gains during the year, up from N1.987bn; and fir value changes of N10.012bn, up from N3.387bn.
These brought total comprehensive income for the year to N103.5bn, up by N35.443bn or 53.86%, from N65.868bn, translating to Earnings Per Share of 250 kobo, down from 265 kobo in the previous year.
The bank also reported an asset base of N3.483tr for the period, up by N892.535bn or 34.44% from N2.591tr, with total customer loans and advances of N1.809tr, up from N1.365tr; and total liabilities rising by N805.842bn or 36.24% to N3.029tr, the lion’s share of which was customer deposits of N2.089tr from N1.683tr.
Shareholders’ fund improved to N454.494bn from N367.801bn, bringing total assets and liabilities to N3.483tr from N2.591tr.
A breakdown of the loan book showed that the lion’s share of Access Bank’s lending (N265.754bn) was to ‘government;’ followed by oil and gas (downstream, upstream, services and crude oil refining)- N498.68bn from the previous N344.637bn; general commerce got N192.758bn as against N159.87bn; construction- N136.719bn from N87.879bn; and real estate activities, N134.617bn, up from N104.749bn. Lending to the agric sector however stood at N22.746bn, slightly higher than the previous N19.176bn.