Access Bank Announces FY21 Gross Profit of N971.9 Billion
Access Bank Plc’s gross profit for the year ended December 31, 2021 increased 27% YoY (y/y) to N971.9 billion in FY2021 from N764.7 billion naira for FY2020, with interest and non-interest income contributing 62% and 38% respectively. Profit before tax (PBT) for the period increased 40% year-on-year to N176.7 billion from N125.9 billion in FY2020, while profit after tax (PAT ) also rose 51% year-on-year to 160 naira. 2 billion from 106.0 billion naira in fiscal year 2020. The group’s asset base remained strong and resilient with total assets of 11.7 trillion naira in December 2021, representing a growth of 35% per year compared to N8.7 trillion in FY2020.
Customer deposits totaled 7.0 trillion naira in December 2021, compared to 5.6 trillion naira in 2020. Net loans and advances totaled 4.4 trillion naira in December 2021, compared to 3.6 trillion naira in 2020 The Non-Performing Loan (NPL) ratio was 4.0% in December 2021, compared to 4.3% in 2020. Herbert Wigwe, Chairman and CEO, said: “Our diversified business model has produced positive and sustainable results, guided by a strong risk management framework, as we grew the business prudently and delivered healthy results. prudential ratios. This year’s results reinforce our determination to generate sustainable returns despite challenging market conditions.
“The group achieved a 27% year-on-year growth in gross profit to N971.9 billion (FY2020: N764.7 billion), leading to an improvement in profit after tax to N160.2 billion ( financial year 2020: N106). 0 billion). As a result, our return on average equity (ROAE) was 17.8%, which is in line with our commitment to stakeholders.
“We maintained strong capital and liquidity positions, well above regulatory levels with a Basel II capital adequacy ratio of 24.5% and a liquidity ratio of 51.0%. This allows the Bank to support our clients in various markets and to properly execute our expansion strategy. “To achieve our vision of becoming the world’s most respected African bank and payment gateway in Africa, we have taken strategic steps to create indelible footprints on the African continent. These include our most recent additions in South Africa, Botswana and Guinea. We also strengthened our business in Mozambique and Zambia, with notable improvement in rankings and market share.
“During the year, we successfully issued the first Additional Tier 1 (AT1) Eurobond from Nigeria. The $500 million instrument improves our capital ratios and provides significant headroom for growth and the execution of our strategic objectives. We also issued a $500 million senior unsecured Eurobond during the period, extending the duration of our foreign exchange balance sheet and strengthening our liquidity.
“2022 is a pivotal year for our franchise, as we complete our 2018-2022 corporate strategic plan. During the year, we will focus on a disciplined execution of our strategy to drive efficiency and operational excellence across all segments, grow revenues and increase profitability, with greater emphasis on risk management practices and a disciplined cost containment structure. “As we enter our next 5-year strategic cycle, we are realigning franchising for growth, transitioning to a holding company (HoldCo). This will allow us to unlock and capture non-banking opportunities available in the market, which which would lead to our revenue diversification, efficiency and growth while maintaining our moderate risk management approach.” After meeting regulatory requirements and obtaining court sanction, we expect HoldCo to become operational in during the first half (H1) of 2022. This will lead to the delisting of Access Bank Plc shares from the Nigerian Stock Exchange (NGX) and the listing of Access. Shares Hold-Co.
