Photo caption: From left, Abubakar B. Mahmoud, Chairman, Nigerian Exchange Limited (NGX); Temi Popoola, Chief Executive Officer, NGX; Ms. Bolaji Agbede, Executive Director, Access Holdings Plc; Herbert Wigwe, Group Managing Director/Chief Executive Officer (GMD/CEO), Access Holdings Plc; Bababode Osunkoya, its chairman; and Seyi Osunkeye, Non-Executive Director, NGX during the Closing Gong at NGX Exchange Limited on Thursday, April 28, 2022 in Lagos.
Access Holdings Plc (formerly Access Bank Plc), on Thursday also presented its performance scorecard for the first quarter ended March 31, 2022, showing its effectiveness in raking in earnings income, and the need to work more on its efficiency to ensure it also becomes most profitable, as competition in the industry daily becomes fiercer.
Highlights of the results include the N295.735bn gross earnings, which makes it the biggest yet, up from N222.141bn in the corresponding period of last year, on which it recorded a net profit of N57.399bn, up from N52.549bn in the prior Q1. Earnings could have been more robust, but for the drop in net interest income from N93.959bn to N87.358bn; in addition to the net loss on financial instruments at fair value of N44.627bn, from the gain of N27.067bn in the first quarter of 2021. Of this amount, fair value loss on non-hedging derivative ballooned to N85.807bn, from a gain of N35.282bn; made less impactful by the trading gains on fixed income securities of N43.362bn from a previous loss of N1.288bn..
Gross earnings was driven by interest income which rose from N125.967bn to N160.317bn; while interest income on financial assets at full value dropped from N17.831bn to N13.371bn. Interest income was boosted by the N91.675bn in customer loans and advances from N91.675bn to N81.095bn. Interest expense, which soared to N86.329bn from N49.83bn, was lifted by the N53.844bn cost of customer deposits, from N21.028bn; which resulted in net interest income of N87.358bn; a drop from the previous N93.959bn. A net impairment charge of N13.685bn, which increased slightly from the previous N12.536bn; resulted in net interest income after impairment charges of N73.673bn, down from N81.424bn.
A breakdown of the earnings also showed that corporate & investment banking contributed the lion’s share of N102.807bn, up from N95.161bn; followed by retail banking with N92.646bn; while commercial banking with N83.254bn; and business banking, N17.028bn. By geography, the group’s Nigerian operations contributed N261.525bn and N24.45bn to earnings and PBT respectively, from N179.533bn and N43.13bn; ahead of the N46.493bn and N32.81bn, as against N25.961bn and N9.922bn, from the rest of Africa; as well as N14.212bn and N7.873bn, compared to N12.549bn and N6.999bn in 2021 respectively from Europe.
Fee and commission income jumped to N56.3bn, from N38.95bn, the lion’s share of which came from the N21.146bn credit-related fees and commission, from N11.023bn; and the N20.127bn earned from channels and other e-business income, up from N17.917bn. Fee and commission expense rose to N13.401bn from N8.221bn, of which N11.378bn was e-banking expense, from N7.182bn; bringing net fee and commission income to N42.899bn from N30.73bn.
Besides the net loss on financial instruments and net forex gain, net loss on fair value hedge rose from N5.328bn to N17.482bn; other operating income improved from N5.918bn to N7.065bn. Personnel expenses increased to N29.252bn from N20.062bn; depreciation rose to N7.387bn from N6.269bn; amortization and impairment stood at N3.289bn from N2.671bn. Other operating expense rose to N77.259bn from N62.494bn.
Profit before tax for the period stood at N65.134bn from N60.052bn; while income tax was flat at N7.735bn from N7.503bn; leaving a net profit of N57.399bn from N52.549bn; representing earnings per share of N1.63, up from N1.49 each in the similar period of last year.
According to the balance sheet, total assets improved from N11.689tr at the end of December 2021, to N12.038tr; with loans and advances accounting for N4.285tr, from N4.161tr. The growth of total liabilities was constrained, inching from N10.681tr at the end of last December, to N10.986tr; of which customer deposits rose from N6.954tr, to N7.494tr. Shareholders’ fund, therefore, rose marginally from N1.026tr to N1.075tr.
Meanwhile, also on Thursday, directors of Access Holdings Plc were at the NGX Exchange trading floor to commemorate its successful restructuring into a holding company, and listing of 35,545,225,622 ordinary shares on Thursday, April 28, 2022, with a closing gong ceremony.
Welcoming the visitors, Chief Executive Officer, NGX Limited, Temi Popoola, commended the group for its contribution to the Nigerian growth story, while also using the opportunity to emphasize NGX’s commitment to collaborating with institutions driving growth in the Nigerian economy
Popoola further noted that the exchange is proud to be part of the progress that Access Holdings has successfully achieved over the past 20 years while assuring that the company will find a worthy partner in the Exchange as it commences its new journey”.
Speaking at the event, Mr. Abubakar Mahmoud, Chairman, NGX, congratulated the directors and executive management of Access Holdings and the parties to the transaction, Chapel Hill Denham Advisory Limited, Coronation Securities Limited, Aluko & Oyebode, and Africa Law Practice NG & Company.
The Exchange, he continued, “is better positioned to lead government advocacy efforts for listed companies, promote technology advancement and digital innovation for the capital market, and increase retail investor participation in the capital market aimed at building a market for the future and addressing the prevailing challenge of financial inclusion. We welcome Access Holdings Plc to a renewed NGX and look forward to deepening our collaboration to develop and push for disruptive, out of the box ideas financial products that will dimension the next curve for the capital market”.
Also speaking at the occasion, Chairman, Access Holdings Plc, Bababode Osunkoya, described Access Holdings Plc as “an evolutionary expression for us which signifies our moving away from what was known as Access Bank into a financial institution. We acknowledge the impact of our collaboration with The Exchange over the years and we look forward to continuing this mutually beneficial partnership to take Nigeria and Africa to the world”.
On his part, Group Chief Managing Director/Chief Executive Officer, Access Holdings Plc, Herbert Wigwe, thanked The Exchange for its remarkable contribution to the Corporation’s story.
He recalled how “in 2004, following the Central Bank of Nigeria mandated recapitalization initiative, Access Bank came to the Exchange on its maiden journey to raise capital. NGX created the platform through which we raised capital and quickly consummated one of the largest mergers in the history of this Country. Today’s event marks a major milestone for us as we evolve from a traditional banking institution into a full-fledged financial services provider that would create an ecosystem of financial services for all Nigerians to benefit from. This is the Exchange that made Access Bank and we thank the Exchange for its continued support over the years”.
Also present on the Trading Floor of NGX to sound the gong to close the day’s trading were Mrs. Fatima Bello-Ismail, Independent Non-Executive Director, Access Holdings Plc; Ahonsi Unuigbe, Non-Executive Director, NGX; Oluseyi Kumapayi, Non-Executive Director, Access Holdings Plc; Seyi Osunkeye, Non-Executive Director, NGX; Kamarudeen Kareem Oladosu, Non-Executive Director, NGX; Yomi Adeyemi, Non-Executive Director, NGX.