Access Holdings Report for the First Nine Months of 2023 Shows Positive Increase

Access Holdings FX gain has climbed by 71% to reach a record seven-year in the first nine (9) months of 2023, and this was attributed to the naira devaluation that suffered the nation's economy.

However, even with the naira devaluation that has affected more industries in these past months, it has been a great achievement for banks as their foreign exchange rises.

Access Holdings reported that its foreign exchange witnessed a gain of N314.6 billion in the first nine months of 2023, and this was derived from converting loans and financial instruments that were denominated in foreign currencies into naira. The record for the first nine months of 2023 was even higher than the corresponding year, which recorded N184.13 billion in the first nine months of 2022.

The holding’s profit after tax grew by a whopping 83%, which was N250.44 billion in the first nine months of 2023; this was greater than the corresponding year of the same period, which was N136.91 billion in 2022.

Access Holding’s profit before tax was N294.42 billion in Q3 2023, up from N10.29 billion in the same period in 2022.

Total revenue recorded for the first nine months was N1.59 trillion, up from N906.93 billion in the same period in 2022.

The holding’s net interest income grew to N389.96 billion in the first nine months of 2023, far from the corresponding year, which amounted to N280.29 billion in 2022.

Additionally, the holding company’s interest income rose to N1.05 trillion from N571.74 billion in the corresponding year.

Comments From Analyst at CardinalStone

• This interest income growth was driven by the elevated interest environment and probable 25.4% YoY rise in interest-earning assets that masked the 2.3x jump in interest expense to N658.5 billion.

• Despite a 13.2 percent increase in loan loss provisioning, cost-of-risk was 10 basis points lower at 1.1 percent compared to 1.2 percent in 9M’22, highlighting the more robust 34.7 percent expansion in gross loans.

Other Increases Recorded at Access Holdings

Access Holdings interest expense increased to N658.51 billion in the first nine months of 2023, which grew more than the corresponding year, which amounted to N291.45 billion in 2022.

Fee and commission income rose to N208.18 billion from N133.49 billion, while fee and commission expenses rose to N59.63 billion from N38.31 billion in the corresponding year.

Net fee and commission income also increased to N148.55 billion in the first nine months of 2023 from N95.18 billion in the corresponding year.

Other operating income rose to N22.11 billion in the first nine months of 2023 from N17.22 billion in 2022.

The holdings account maintenance charge and handling commission rose to N21.85 billion in the first nine months from N18.71 billion in the same period of 2022.

Businessday Report Other Increases Recorded in Access Holdings

• Channels and other e-business income grew to N70.35 billion in 9M’2023 from N49.4 billion in the same period of 2022.

• Personnel expenses surged to N117.63 billion in 9M’2023 from N89.84 billion in the same period of 2022.

• The holding company’s net impairment charge on financial assets stood at N61.83 billion, up from N52.95 billion during the period.

• Depreciation increased to N30.54 billion from N22.47 billion, while amortisation and impairment grew to N12.63 billion from N10.28 billion.

• Interest income on loans and advances to banks surged to N37.48 billion in 9M’2023 from N12.38 billion in the same period of 2022.

• Similarly, interest income on loans and advances to customers increased to N458.41 billion from N352.01 billion.

• Net cash generated from operating activities rose to N1.41 trillion in 9M’2023 from N249.02 billion in the same period of 2022.

• Net cash generated from investing activities stood at a negative N688.97 billion in 9M’2023 from N38.58 billion negative cash flow in the reviewed period.

• Net cash generated from financing activities stood at a negative of N396.18 billion in 9m’2023 from a positive of N429 million in the same period of 2022.

• Cash and cash equivalents at the end of the period increased to N2.37 trillion in 9M’2023 from N1.76 trillion in the same period of 2022.

• Earnings per share stood at N692 per share in 9M’2023 from N387 per share in the same period of 2022.