Access Bank Dethrones Zenith To Become Nigeria's Biggest Bank by Asset.

This week was a good one for Access Bank as it dethrones Zenith Bank from the position of the biggest bank in Nigeria by asset. Zenith, which has occupied the throne for 37 weeks, since February, disclosed its asset estimate at N8.841 trillion in its audited financial report for 2020 which was released.

Access Bank which released its financial reports for 2020, recorded an increase of 21.6 percent, which equals N1.537 trillion, in just 2020. This puts the total asset value of the bank at a staggering N8.680 trillion, sending Zenith Bank to the number spot by about N2 billion and taking the throne of Nigeria's biggest bank in the asset category.

Access Bank's expansion outside of Nigeria was pivotal to the jump in assets, as the acquisition deals with Cavmont Bank in Zambia, and Transactional Bank in Kenya.

Its revenue increased by 14.7 percent from N666.75 in 2019, to N794.71 in 2020.

Profit before tax was at N125.92 billion from N111.93 billion and total profit for the year was N106.01 billion, a 12.7 percent difference from N94.06 billion recorded in 2019.

A decline in total interest income from N277.229 billion to N262.950 billion controlled earnings for the bank just like its provision for bad debt. It arranged N62.89 billion of its turnover to atone for defaults in credit facilities, which is three times more than the usual amount reserved for that. This is an effect of the coronavirus pandemic which has limited the bank's ability to repay loans. 

The bank has a loan to deposit ratio of 55 percent which can be said to be appropriate, but it also has a high level of bad loans.

Just Tuesday, the bank announced that in line with its expansion plans, it had invested $60 million for a stake in South Africa's Grobank. This is expected to do great things to the company's revenue.

On the stock market, however, Access Bank's shares haven't been as impressive. It has recorded losses, which has sent its share-price to N8.10 as of Friday. It started this year at almost N9 per share.

It will pay dividends of N0.8 per share to stockholders, an increase from the N0.75 per share paid in 2019.

Incorporated in 1989, Access Bank Plc focuses on providing various banking products and services in four operating segments: Corporate and Investment Banking, Commercial Banking, Retail Banking.