Access Bank posts N765bn Gross Earnings in 2020

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Access Bank posts N765bn Gross Earnings in 2020

Despite the challenging economic and regulatory landscape, Access Bank Plc has announced gross earnings of N764.7bn for the financial year ended December 31, 2020.

The Bank’s audited gross earnings shows a 15 percent improvement from the N666.75bn posted for the comparative period of 2019. While the Bank’s Profit Before Tax stood at N125.9bn, it also posted a non-interest income of N275.5bn, a significant 112 percent year on year growth from 2019. This is despite the cost of operating its enlarged franchise.

The Group Managing Director and CEO of Access Bank Plc, Herbert Wigwe, said that the institution’s resilient performance was testament to the effectiveness of our strategy and capacity to generate sustainable revenue.

He added that the strategic actions that the Bank has taken over the past 12 months evidence a strong focus on retail banking and financial inclusion, an African expansion strategy and a drive for scale for sustainable value creation.

In 2020, according to Wigwe, Access Bank opened its doors for business in Kenya and Mozambique, further increasing its footprints across the African Continent.

“Access Bank Zambia also concluded the acquisition of Cavmont Bank Limited in January 2021 and the Group recently announced the approval by relevant regulatory authorities for the acquisition of Grobank Limited, creating an inroad into the South African market in realization of the Group’s strategic ambitions.

“In view of the opportunities that exist in the market, we will be transitioning to a HoldCo structure. The Bank has received the Approval-In-Principle from the Central Bank of Nigeria for the restructuring and the HoldCo will consist of 4 subsidiaries in order to tap into the market opportunities that are available in the consumer lending market, electronic payments industry and retail insurance market. Going into the fourth year of our 5-year cyclical strategy, our focus remains on consolidating our retail momentum and expanding our African footprint in a sustainable manner,” Wigwe said.

Access Bank Plc recorded a consistent growth in its retail banking business, reporting a 5.8mn growth in customer sign-on during the year through our financial inclusion efforts.

This increase in customer base led to a retail revenue of N177.2bn, a 64.4 percent increase from its FY 2019 figures of N107.8bn. The Bank’s customer deposits also grew by 31 percent to N5.59trn in Dec 2020 with savings account deposits standing at N1.31trn.

Similarly, net loans and advances grew by 18 percent to N3.61trn in comparison to its 2019 figures of N3.06tillion.

As the Bank intensified recovery efforts, undertook significant write off and leveraged its robust risk management practices, its asset quality improved to 4.3 percent compared to its 2019 report of 5.8 percent and this is expected to continue to trend downwards as it strives to surpass the standard it had built in the industry prior to the merger with Diamond Bank.


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