By Chukwuma Umeorah
Access Holdings has grown its profit to N619.32 billion for the fiscal year 2023, representing a 306 per cent increase compared to N152.90 billion recorded in the preceding year.
This was disclosed in the Company’s consolidated and separate statement of financials for 2023 filed with the Nigerian Exchange Limited (NGX).
The company also declared a final dividend of N1.80 for every ordinary share of 50k to its shareholders bringing the total dividend for the 2023 financial year to N2.10 per share.
The Company’s secretary, Sunday Ekwochi in a statement noted that the payment, slated for April 19, is subject to appropriate withholding tax and that only shareholders whose names appear on the Holdings Register of Members as of the close of business on April 10 would be eligible for the dividend.
In its full-year results for the period ending December 31, 2023, the Holdco reported a staggering 335 per cent increase in pre-tax profit, soaring to N729 billion from N167.68 billion in 2022 underscoring the effectiveness of the company’s strategic initiatives and prudent financial management.
Its gross earnings grew 87 per cent reaching N2.59 trillion compared to N1.39 trillion in the previous year. Access Holdings attributed its robust financial performance to several key factors, “including significant growth in interest income and non-interest income.”
The company capitalized on a higher yield environment, supported by a substantial expansion in earning assets, which contributed to a 100 per cent year-on-year (YoY) increase in interest income. “Additionally, growth in non-interest income was driven by various income lines such as trading income, fees & commissions, and e-business income, along with increased transaction volume across its expanding retail network and digital channels.”
Furthermore, Access Holdings benefited from a foreign exchange gain of N628.93 billion during the period under review, which significantly bolstered the group’s profit. The company’s assets also witnessed a substantial increase, rising by 77.94 per cent to N26.89 trillion from N14.99 trillion in the previous year, highlighting its strong financial position and solid growth trajectory.
Access Holdings’ customer deposits experienced robust growth, increasing by 65.6 per cent YoY to N15.3 trillion, driven by a combined growth of 75 per cent in demand deposits and 47 per cent in savings accounts.
Despite the impressive performance indicators, Access Holdings faced challenges such as fraud and forgery incidents, resulting in a loss of N6.15 billion during the period under review. However, the it remained resilient, with a non-performing loan ratio improving to 2.8 per cent from 3.2 per cent in 2022.
Its operating expenses increased by 38.9 per cent to N697.5 billion, characterized by headline inflation of 29.82 per cent for December 2023. Nevertheless, Access Holdings continued to invest in its expansion and franchise, as evidenced by the completion of a $300 million capital investment facility into Access Banking Group.
The late Group Managing Director of Access Holdings, Herbert Wigwe, who recently passed away in a February 2024 played a pivotal role in overseeing the affairs of the financial holding company in the year under review