Access Bank PLC has announced gross earnings of ₦764.7 billion for the financial year ended December 31, 2020.
The Bank’s audited gross earnings shows a 15% improvement from the ₦666.75 billion posted for the comparative period of 2019, in spite of the very challenging economic and regulatory landscape.
Profit Before Tax stood at ₦125.9 billion, with a non-interest income of ₦275.5 billion, a significant 112% year-on-year growth from 2019, despite the cost of operating its enlarged franchise.
The bank recorded a consistent growth in its retail banking business, reporting a 5.8 million growth in customer sign-on during the year through its financial inclusion efforts. This increase in customer base led to a retail revenue of ₦177.2 billion, a 64.4% increase from its 2019 figures of ₦107.8 billion.
The Bank’s customer deposits also grew by 31% to ₦5.59 trillion in December 2020 with savings account deposits standing at ₦1.31 trillion. Similarly, net loans and advances grew by 18% to ₦3.61 trillion, in comparison to its 2019 financial year figures of ₦3.06 trillion.
In addition, as the Bank intensified recovery efforts, undertook significant write off and leveraged its robust risk management practices, its asset quality improved to 4.3% compared to its 2019 report of 5.8% 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.
Access Bank’s Group Managing Director and CEO, Mr. Herbert Wigwe, said the institution’s resilient performance is a testimony to the effectiveness of its strategy and capacity to generate sustainable revenue.
According to him, “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, Access Bank proudly opened its doors for business in Kenya and Mozambique, further increasing our 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”.
Wigwe said in view of the opportunities that exist in the market, the bank will be transitioning to a Holding Company structure. It has received Approval-In-Principle from the Central Bank of Nigeria, CBN, 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 its 5-year cyclical strategy, the bank’s focus remains on consolidating its retail momentum and expanding its African footprint in a sustainable manner.
