Popoola commends Access Holdings’ contribution to Nigeria’s growth

 

 

.As Bank’s profit rises on N85.28bn FX gains

 

COMFORT EKELEME, BUSINESS EDITOR

 

 

The Chief Executive Officer, Nigerian Exchange Limited (NGX), Temi Popoola has commended Access Holding Plc’s contribution to the Nigerian growth story and emphasized NGX’s commitment to collaborating with institutions driving growth economic growth.

 

Popoola stated this Thursday in Lagos during the Closing Gong Ceremony hosted by NGX to commemorate Access Holdings’ successful restructuring into a holding company structure and the listing of 35,545,225,622 ordinary shares of Access Holdings Plc.

 

The CEO further noted that the Exchange is proud to be part of the progress that Access Holdings has successfully achieved over the past 20 years while assuring that the company will find a worthy partner in the Exchange as it commences its new journey”.

 

Also speaking at the event, Chairman, NGX, Mr. A.B. Mahmoud congratulated the Board of Directors and Executive Management of Access Holdings and the parties to the transaction, Chapel Hill Denham Advisory Limited, Coronation Securities Limited, Aluko & Oyebode, and Africa Law Practice NG & Company.

 

He said, “NGX has emerged from a recent restructuring and is better positioned to support our stakeholders in their quest to raise long-term capital.

 

“The Exchange is better positioned to lead government advocacy efforts for listed companies, promote technology advancement and digital innovation for the capital market, and increase retail investor participation in the capital market aimed at building a market for the future and addressing the prevailing challenge of financial inclusion.

 

“We welcome Access Holdings Plc to a renewed NGX and look forward to deepening our collaboration to develop and push for disruptive, out of the box ideas financial products that will dimension the next curve for the capital market,” he said..

 

In his remarks, Chairman, Access Holdings Plc, Mr. Bababode Osunkoya, said, “The significance of this event as our first external engagement as Access Holdings Plc is not lost on us.

 

“Access Holdings Plc is an evolutionary expression for us which signifies our moving away from what was known as Access Bank into a financial institution. We acknowledge the impact of our collaboration with The Exchange over the years and we look forward to continuing this mutually beneficial partnership to take Nigeria and Africa to the world,” he said.

 

On his part, Group Chief Managing Director/Chief Executive Officer, Access Holdings Plc, Dr. Herbert Wigwe, thanked The Exchange for its remarkable contribution to the Corporation’s story.

 

He said, “In 2004, following the Central Bank of Nigeria mandated recapitalization initiative, Access Bank came to the Exchange on its maiden journey to raise capital. NGX created the platform through which we raised capital and quickly consummated one of the largest mergers in the history of this Country.

 

“Today’s event marks a major milestone for us as we evolve from a traditional banking institution into a full-fledged financial services provider that would create an ecosystem of financial services for all Nigerians to benefit from. This is the Exchange that made Access Bank and we thank the Exchange for its continued support over the years,” Wigwe said.

 

Also present on the Trading Floor of NGX to sound the gong and bring the day’s trading to a close were Mrs. Fatima Bello-Ismail, Independent Non-Executive Director, Access Holdings Plc; Ahonsi Unuigbe, Non-Executive Director, NGX; Mr. Oluseyi Kumapayi, Non-Executive Director, Access Holdings Plc; Mr. Seyi Osunkeye, Non-Executive Director, NGX; Mr. Kamarudeen Kareem Oladosu, Non-Executive Director, NGX; Mr. Yomi Adeyemi, Non-Executive Director, NGX.

Access Bank Nigeria Plc, the largest lender by total assets in Africa’s most populous nation, has recorded an increase in profit, thanks to foreign exchange gains brought on by currency devaluation.

 

For the first three months through March 2022, Access Bank’s net income rose by 9.25 percent to N57.40 billion from N52.54 billion as at March 2021.

 

The growth at the bottom line (profit) was underpinned by a net gain on foreign exchange of N85.28 billion, and that helped offset the drop in net interest income.

 

Banks make money on their dollar denominated assets when the currency is devalued by the regulator. In 2014, the exceptional item was the major driver of banks profit that adds impetus to the argument that monetary policies make or mare a lender.

 

It is important to note that the improvement in the yield environment also propelled Access Banks’ revenue.

 

This is because a high interest rate regime that undermines companies earnings and crimps growth is a boon to banks as they make more money, by taking advantage of the difference between the interest banks pay to customers and the interest the bank can earn by investing.

 

Interest income from loans and advances was up 20.78 percent to N173.68 billion in March 2022 from N143.79 billion as at March 2021.

 

Interest income from treasury bills were up 67.91 percent to N63.27 billion in the period under review from N37.68 billion as at March 2021.

 

However, net interest income dipped by 7.02 percent to N87.35 billion in the period under review, and the reduction was due to a 73.23 percent increase in interest expense.

 

The lender has a total loan book of N4.71 trillion, which is 4.66 percent higher than 2021’s N4.50 trillion.

 

Deposits from customers were up 7.76 percent to N7.49 trillion in the period under review from N6.95 trillion the previous year.

 

Access Bank was in the front burner of mergers and acquisition last year as it continues to consolidate its position in the Nigeria market.

 

In 2021 it announced: 1) the acquisition of controlling shares (90.35%) in Access Bank South Africa (formerly known as Grobank Limited; 2) purchase of a 78.15% stake in BancABC Botswana; 3) the acquisition of BancABC Mozambique; and 4) the merger of Access Bank Zambia and Cavmont Bank.

 

Access Bank remains steadfast in rewarding shareholders from distributable profit. It has declared an interim dividend of N0.70 for every ordinary share.