Access Bank has reassured its shareholders that it will remain committed to creating value for them according to the bank’s group managing director, Herbert Wigwe
Mr Wigwe made the pledge following the recent announcement of the bank’s financial results for the half-year ended June 30 2020.
“Leveraging investments in digital banking post-merger, we have seen a growth in our retail banking business, as evidenced by the growth customer sign-on, transaction volume and value, and increased adoption of our digital channels. While the other half of 2020 will remain challenging, digital banking has become more essential than ever in the pursuit of sustainable earnings.
“We are confident that our purposeful strategy, diversified model, and investment in digital solutions will ensure that we remain resilient and continue to support our stakeholders to recover and thrive. I want to thank our employees for their commitment and exceptional work in these uncertain times,” Wigwe said.
According to the financial result statement, the bank recorded gross earnings of ₦396.8bn (+22% y/y), on the back of a 191% y/y growth in non-interest income to ₦150bn, buttressing the efficacy of its strategy and capacity to generate sustainable revenue.
Mr Wigwe said that the bank also continued to grow its trading and transaction banking income through the optimisation of its channels and electronic banking business, notwithstanding the reduction in transaction charges.
Despite the high cost of operation and an increase in its net impairment charge, Profit Before Tax stood at ₦74.3bn.
Also, despite the shortfalls due to the COVID-19 pandemic, the bank maintained a robust capital position, underpinned by resilient and well-diversified business operations.
The bank’s capital and liquidity positions were well above regulatory levels with a Capital Adequacy Ratio of 20.0% and a liquidity ratio of 44.7% according to the statement
In the first half of 2020, the bank took several actions to proactively identify and resolve loan performance concerns which were done in line with its long-term approach to risk management and maintaining resilience and sustainability in its balance sheet. The resultant effect of this approach was its NPL ratio of 4.4%, backed with write-offs.
The bank also announced that investors will get 25 kobo per share as an interim dividend to be paid on Monday, September 28, 2020.
According to the bank, payments will only be made to those whose names appear on the register of members at the close of business on Thursday, September 17, 2020, and have completed the e-dividend registration per directives given to United Securities Limited.
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