Access Holdings Plc has unveiled its half-year financial performance, showcasing a remarkable surge in pre-tax profits, which soared by 71.39% year-on-year, reaching an impressive N167.601 billion.
While the headline numbers are impressive, a deeper dive into the report reveals a nuanced tale of growth and challenges.
Gross Earnings Surge by 58.89%
In a year marked by economic uncertainties, Access Holdings Plc reported gross earnings of N940.311 billion, reflecting a remarkable 58.89% year-on-year increase. This robust growth was primarily driven by the bank’s strategic focus on expanding its loan portfolio and investments in securities.
Interest Income Records 63% Growth
The bank’s interest income witnessed a remarkable upswing, growing by 63.00% year-on-year to N606.837 billion. This boost was predominantly attributed to increased interest income generated from loans and advances extended to customers and investments in securities.
Rising Interest Expenses Impact Net Interest Income
However, the flip side of the coin revealed a significant surge in interest expenses, which climbed by a substantial 118.88% year-on-year, reaching N382.598 billion. This surge was primarily driven by higher interest expenses related to customer deposits, which grew by 33.31% year-on-year, totaling N318.526 billion. Consequently, the bank’s net interest income growth moderated to 13.54% year-on-year, reaching N224.239 billion.
Fair Value and Forex Gains Shine
One of the standout performers in Access Holdings’ H1 2023 results was its fair value and foreign exchange gains, which surged by 49.74% year-on-year to N192.047 billion. These gains were primarily attributed to significant fair value gains on equity investments and profits from foreign exchange and fixed-income securities trading during the first half of 2023.
Loans and Advances Drive Asset Growth
The bank continued to expand its loan book aggressively, with loans and advances to customers reaching N6.71 trillion, reflecting a robust 31.54% growth. This growth demonstrates Access Holdings’ commitment to supporting businesses and individuals in achieving their financial goals.
Customer Deposits Show Strong Increase
Customers’ deposits also experienced a substantial uptick, growing by 35.20% year-on-year, totaling N12.508 trillion. This increase highlights the bank’s growing customer base and trust in its financial services.
Access Holdings’ significant growth in pre-tax profit for H1 2023 can be attributed to the substantial gains in net fair value and foreign exchange. However, the bank is mindful of the rising interest expenses, which have impacted net interest income growth.
Support Investigative Journalism and Mentorship
Courageous Journalism of Truth,Transparency and Development is in the DNA of Prime Business Africa; By donating as little as N1000 or $1 today, you are helping to keep credible journalism and life-changing information free for all.