Access Bank Shows Strenght In First Post Merger Results

The weight of the merger with Diamond Bank may have marginally diluted shareholder value but Access Bank has shown its capacity to swim above the tide with its handsome 2019 results released last weekend.

Though profitability indicators as reflected by Profit Before Tax and Profit After Tax increased from preceding figures, earnings per share decreased marginally perhaps in reflection of the increased shareholder base of the new bank.

The bank posted gross earnings of N666.75 billion for the financial year ended Dec. 31, 2019.

The figure was higher by 26.10 per cent when compared with N528.75 billion in the comparative period of 2018.

Its profit before tax stood at N115.38 billion in contrast with N103.188 billion achieved in 2018.

Also, profit after tax rose to N97.51 billion from N94.98 billion, while earnings per share decreased from N3.31 to N2.90 during the period under review.

Access Bank Figures

The Board of Directors recommended a final dividend of N14.22 billion, translating to 40k per share, higher than 25k per share paid in 2018.

Meanwhile, the bank had earlier proposed and paid interim dividend of 25k per share, bringing the total dividend per share for 2019 to 65k per share.

Also, net interest income stood at N277.23 billion, compared with N173.578 billion in 2018, while interest expense rose from N207.34 billion to N259.62 billion.

Net Impairment rose to N20.19 billion, compared with N14.66 billion in 2018.

Net fee and commission income increased to N74.04 billion as against N52.49 billion in 2018.

Loans and advances to customers grew to N2.91 trillion from N1.99 trillion in 2018, while deposits of customers stood at N4.26 trillion from N2.56 trillion in 2018.

Recall that the bank consumated a business combination with the defunct Diamond Bank.

Mr. Herbert Wigwe, the bank’s Group Managing Director, said recently that it was now fully positioned in the retail market with the completion of the merger.

“Following the successful completion of the merger with Diamond Bank in March 2019, we have now fully positioned ourselves in the retail market with a view to bringing the power of banking to the doorsteps of millions.

“We are providing a broader platform to facilitate payments services in Nigeria and across Africa, by harnessing our significantly enhanced digital technology capabilities,” Wigwe said.

He said that the bank had made solid progress in line with its 2018-2022 five-year strategy and remained committed to the achievement of its strategic imperatives going forward.

According to him, the bank will continue to invest in its people, technology and most importantly, its product offerings to customers.

“Our focus is to become the world’s most respected African Bank by leveraging on the strength of our retail and wholesale business to provide unrivalled value to our customers,” he stated.

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