By Aduragbemi Omiyale
One of the leading financial institutions in Nigeria, Access Holdings Plc, has again demonstrated strong resilience despite the challenging macroeconomic environment in the country.
In the first half of 2024, the company posted a triple-digit growth across all profitability metrics, with gross revenue rising by 133.5 per cent year-on-year to N2.2 trillion from N940 billion in the half-year of 2023, supported by higher interest and non-interest earnings in the period.
Details of its audited financial statements for the first six months of this year showed that interest income surpassed the N1 trillion mark from the expansion of risk assets and effective pricing, leading to a 142 per cent growth from N606.8 billion in half-year 2023 to N1.47 trillion.
Also, non-interest income grew by 117 per cent to N723.6 billion from N333.4 billion in the same period of last year, as profit before tax increased by 108.2 per cent to N348.97 billion from N167.6 billion in H1 of 2023, and the profit after tax rose by 107.7 per cent to N281.3 billion from N135.4 billion, resulting in a 103 per cent growth in earnings per share (EPS) to N7.58 versus N3.74 in half year of 2023.
It was observed that the cost-to-income ratio (CIR) remained relatively flat at 60.4 per cent in the period under review despite double-digit growth in inflation and devaluation in the same period.
The cost-to-income was moderated as revenue outpaced operating expenses due to ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1 per cent and 37 per cent, respectively, and is expected to normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses, and the currency conversion impact of subsidiaries’ operating costs.
To maximise value for shareholders, Access Holdings has declared an interim dividend of 45 kobo per share compared with the 30 Kobo paid in the same period of 2023.
Access Holdings says it remains confident in its ability to surpass the growth momentum achieved in the first half of the year in the second half.
“Our strategic priorities will remain focused on scaling non-banking segments, expanding our digital footprint, and solidifying our presence in high-growth African and international markets.
“Furthermore, we are fast-tracking the completion of our technology infrastructure integration and upgrades, which will significantly enhance operational efficiency across the group.
“This technology transformation will strengthen our digital capabilities, allowing us to deliver superior services to our customers, drive operational synergies, and optimise cost,” the firm stated.