Access Holdings generates N2.2trn revenue in 6 months

Access Holdings Plc has announced its half-year audited financial results for the period which ended on June 30, 2024, with the company generating N2.2 trillion as revenue.

Access Holdings, in a statement made available to The Star on Sunday, September 22, said in the half year 2024, total assets and shareholders’ equity stood at N36.5 trillion and N2.8 trillion, respectively.

The company noted that this represents a year to date of growth of 37.1% and 29.8%, respectively.

It said customer deposits increased by 31.3%, from N15.3 trillion in December 2023 to N20.1 trillion by half year 2024.

Access Holdings disclosed that its gross loans and advances also saw an increase of 37.6%, growing from N8.9 trillion in December 2023 to N12.3 trillion by half year 2024, from organic loan growth and the impact of foreign currency-denominated loans.

Access Holdings reported triple-digit growth across all profitability metrics, with gross revenue rising by 133.5% year-on-year, from N940 billion in half year 2023 to N2.2 trillion in half year 2024.

The company stated that the increase was supported by higher interest and non-interest earnings in the period.

It added that its interest income surpassed the N1 trillion mark, from the expansion of risk assets and effective pricing, leading to a 142% growth from N606.8 billion in half year 2023 to N1.47 trillion by half year 2024.

The company’s non-interest income also grew by 117%, rising from N333.4 billion in half year 2023 to N723.6 billion in half year 2024.

Access Holdings said its profit before tax increased by 108.2% year-on-year, from N167.6 billion in half year 2023 to N348.97 billion in half year 2024, while profit after tax rose by 107.7%, from N135.4 billion to N281.3 billion over the same period.

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It noted that this resulted in a 103% growth in earnings per share (EPS), which increased from N3.74 in half year 2023 to N7.58 in half year 2024.

Access Holdings added that its cost-to-income ratio (CIR) remained relatively flat at 60.4% in half year 2024 despite double digit growth in inflation and devaluation in the same period.

Access Holdings stated: “Cost to income was moderated as revenue outpaced operating expenses.

“The increase in operating expenses was primarily from ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1% and 37%, respectively, and will normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses, and the currency conversion impact of subsidiaries’ operating costs.

“To maximise value for our shareholders, Access Holdings Plc has declared an interim dividend of 45 kobo per share (half year 2023, 30 Kobo), representing a 50% increase in dividend payout.”

The company further noted that despite the challenging operating environment and tight monetary policy stance, Access Banking Group recorded strong year-on-year growth across all performance metrics, with interest and non-interest income contributed significantly to gross earnings.

It stated that net interest income grew by 131% from N232.2 billion in half year 2023 to N536.7 billion in half year 2024, adding that fees and commissions increased by 94% year on year from N119.8 billion to N232.5 billion from higher transaction volumes on the company’s digital channels, credit-related fees and card payments.

Access Holdings said: “The Banking Group subsidiaries contributed 55% to the Group’s Profit Before Tax (PBT), demonstrating the significant impact of their operations and growing importance in driving overall profitability. Year-on-year, their PBT performance grew by 218% from N63.3 billion to N201.7 billion.

“As part of our ongoing strategic expansion beyond Nigeria, we have successfully completed the full integration of the merged entities in Zambia and Tanzania operations.

“These developments not only enhance our presence in key markets but also create significant value by expanding our customer base, strengthening cross-border banking capabilities, and fostering increased operational efficiency across our subsidiaries.”

The Star