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Access Bank H1 2020 result shows growth across different income lines (See graphs)

By David Olalele



Access bank
Access Bank GMB, Herbert Wigwe

Access bank has released its H1 2020 financial report. The report showed that the bank experienced growth across its different income lines and saw an improvement in its asset quality despite local macroeconomic headwinds caused by a global coronavirus pandemic.


  • Gross earnings grew by +22.31% Y-o-Y to N396.56bn in H1 2020 from N324.38bn recorded in H1 2019.
  • PBT grew by +1.84% Y-o-Y to N74.31bn from N72.97bn recorded in H1 2019.
  • The bank’s cost-to-income ratio increased significantly to 65.8% in H1 2020 from 61.5% recorded in the corresponding period of the previous year.
  • NPL declined noticeably in H1 2020 to 4.4% from 6.4% recorded in H1 2019 showing an improvement in asset quality
  • ROAE declined to 19.1% from 23.5% recorded in H1 2019
  • ROAA declined to 1.6% in H1 2020 from 2.2% recorded in H1 2019.
Access bank

Access Bank Gross Earning H1 2020

Gross Earnings:

Gross earnings grew 22% to 396.8bn in the period (H1’19: ₦324.4bn), comprising 62% in interest income and 38% in non-interest income.

  • Interest income drivers (-10% y/y, H1’20: ₦246.7bn): − A 12% y/y growth in income from Cash and Cash Equivalents to ₦5.4bn (H1’19: ₦4.8bn), and a 4% growth in interest on Loans and Advances to customers to ₦167.3bn (H1’19: ₦160.2bn), underscored by the enhanced Cash and Cash equivalent and Loan portfolio

− A 31% y/y decline in income from investment securities to ₦74.0bn (H1’19: ₦107.9bn), driven by a declining interest rate environment

  • Non-Interest Income drivers (+191%y/y, H1’20: ₦150.0bn):

− A 564% y/y gr owth in net trading income to ₦68.6bn from a loss in H1’19 of ₦14.8bn, on the back of a Net gain on derivatives and FX

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− A 24% y/y increase in Fee & Commission income to ₦51.8bn, largely underlined by income from increased transaction velocity across our Channels and other E-business (+151% y/y)

− A 21% y/y increase in other operating income to ₦29.6bn, largely driven by a strong recovery of ₦22.4bn (+60% y/y)

Access bank

Access Bank’s Assets as at H1 2020

Growth in Operating expense:

  • Growth in Operating expense by 40% y/y to 174.3bn (H1’19; ₦124.5bn), reflecting the impact of the enlarged franchise and the inflationary environment
  • Actual cost growth is 6% y/y on a common-sized basis (full 6months of Diamond and Access Bank for 2019), which is well below the inflation rate of 12.6%
  • Operating expense declined by 7% q/q to ₦84bn, reflecting the results of our cost transformation initiative
  • A 56% y/y growth in AMCON surcharge, reflecting the growth of the Bank’s asset base, accounting for 20% of total operating cost
  • IT and E-Business expenses surged by 91%, majorly due to increased investment in creating IT efficiency and increasing transaction volumes on E-business
  • Accordingly, Cost-to-Income ratio increased by 423bps y/y to 65.8% (H1’19: 61.5%), but decreased by 437bps q/q due to efficient cost-saving efforts
  • Customer deposits increased by 10% YTD to ₦4.67trn in the period (Dec’19: ₦4.26trn), reflecting the impact of our continuous and deliberate deposit mobilization
  • CASA (1) account deposits grew 17% YTD to ₦3.1trn (Dec’19: ₦2.62trn) accounting for 66% of customer deposits. This is large as a result of our mobilization of sustainable low-cost deposits and reclassification of HIDA
  • Total savings deposits crossed the ₦1trn threshold in the period.
  • Improved Customer Deposit mix, comprised of 65% local currency deposits and 35% foreign currency deposits (Dec’19; 61%:39%), further reducing our foreign currency liabilities
  • Subsidiary contributions of ₦1.16trn accounted for 18% of total group customer deposits in the period (Dec’19: ₦694.6bn).
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UK and Ghana jointly accounted for 88% (Dec’19: 83%) of total subsidiary customer deposits and 16% of total deposits

Well diversified gross loan book of ₦3.55trn as at Jun’20 (Dec’19: ₦3.26trn), up 9% YTD reflecting the impact of our drive to improve core loan growth

  • FCY exposures dropped by 80bps to 32% of the total loan portfolio in the period, due to deliberate efforts at de-risking the portfolio
  • Loan-to-Funding ratio stood at 59.1% as at Jun’20 (Dec’19: 62.9%), including the 150% weight on growth in retail exposures
Access bank

Access Bank’s Assets as at H1 2020

Mobile unique Users:

The total number of Mobile unique Users grew by 46% YTD from 6.2 million in Dec. 2019 to 9.2 million in June 2020.

  • Total number of active users on the mobile app platform also increased by 0.9 million users (35%

YTD) from 2.7 million in Dec. 2019 to 3.7 million in June 2020.

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