Access Bank Plc (Access) released its six months audited results for the period ended June 30th 2017, yesterday, being 23rd August, 2017.
From the result gathered,
Gross Earnings grew by 41.70% y/y to N246.58 billion ( with interest income and non-interest income contributing 66% and 34% respectively) , so was Operating Expenses with 38.29% y/y surge which was driven by the high inflationary environment and the effect of unamortized AMCON charges
Profit before Tax and Profit after Tax, both increased significantly by 18.31% y/y and 17.31% y/y to N52.05 bilion and N39.46 billion respectively after a surge in income tax of 21.57%y/y.
Non-Interest Income was up by 37% y/y to N84.4 billion vs ₦61.7billion in H1 2016, underlined by strong FX income on the trading portfolio.
Earnings per share (EPS) also grew to N1.38 in the period, compared with N1.17 recorded in the previous year. The directors also proposed an interim dividend of N0.25 per share, set for a closure date of 7th September, 2017 and a payment date set for 21st September, 2017.
Commenting on the financial results, the Group Director/CEO, Herbert Wigwe Mr. Segun said that “The Group’s performance in the first half of the year reflects the strength and sustainability of our business, and the effective execution of our strategy. We continue to, however, intensify the implementation of our cost reduction initiatives in order to improve the bottom-line, despite high inflationary environment.
In view of the recovering macro, our focus remains growing the retail franchise through digital expansion to enable diversified earnings as well as continuous and proactive risk management as we selectively grow risk assets. We will remain resilient in the execution of our bold strategy for increased growth and profitability whilst maximizing shareholder value in 2017and beyond.”
Finally, we believe ACCESS is poised to outperform in 2017FY. Based on yesterday’s close price of N10.24 and TP price of N11.80, we have a BUY recommendation on the stock.
Management will be hosting a conference call for investors and analysts on Wednesday 30 August, 2017 at 14:00hrs Lagos to discuss the H1-2017 performance. The dial-in details are as follows:
Nigeria: +234 1 903 0040
South Africa: +27 10 201 6800
United Kingdom – Toll Free: +44 808 162 4061
United States of America – Toll Free: +1 855 481 5362