Access Holdings Plc posts N591.80bn gross earnings for H1 2022

Access Holdings Plc (NGX: ACCESSCORP) has reported a 2.2% increase in profit after tax despite a 31.42% growth in gross earnings for the first half of the year ended June, 30, 2022.

Income statement

Gross earnings rose to N591.80 billion in June 2022 from N450.30 billion in June 2021.
Interest income increased to N342.53 billion in June 2022 from N279.59 billion in June 2021.
Net interest income however, dropped to N197.50 billion in June 2022 from N200.02 billion in June 2021.
Net fee and commission income also declined to N55.44 billion in June 2022 from N58.46 billion in June 2022
Net gains/(loss) on financial instruments at fair value soared to N64.14 billion from minus N23.26 billion in June 2021.
Net foreign exchange gain dropped to N52.84 billion from N68.20 billion I June 2021.
Personnel expenses climbed to N58.27 billion from N43.51 billion in June 2021.
Other operating expenses amounted to N176.71 billion up from N126.04 billion in June 2021.
Profit before tax narrowly increased to N97.79 billion in June 2022 from N97.38 billion in June 2021.
Access Holdings Plc reported an income tax expense of N9.05 billion in June 2022, down from N10.56 billion recorded in June 2021.

Profit for the period after tax rose to N88.73 billion in June 2022, from N86.82 billion in June 2021.
Earnings per share rose slightly to N2.52 in June 2022 from N2.48 in June 2021.

The Board of Directors proposed interim Dividend of 20 Kobo per ordinary share of 50 Kobo each on the 35,545,225,622 issued ordinary shares of 50k each payable to shareholders on the register of shareholding at the closure date.

Payment of dividends is subject to withholding tax rate of 10% in the hands of qualified recipients.

Balance sheet

Access Holdings Plc total assets rose to N13.20 trillion as at June 30, 2022 from N11.73 trillion as at December 31, 2021.

Major components of the assets:

Loans and advances to customers: N4.61 trillion (N4.16 trillion in 2021)
Investment securities: N2.76 trillion (N2.27 trillion in 2021)
Restricted deposit and other assets: N2.12 trillion (N1.71 trillion in 2021)
Cash and balances with banks: N1.24 trillion (N1.49 trillion in 2021).

Total liabilities rose to N12.13 trillion as at June 30, 2022 from N10.68 trillion as at December 31, 2021, mainly due to increase in customers’ deposits.

Major components of the liabilities:

Deposits from customers: N7.84 trillion (N6.95 trillion in 2021)
Deposits from financial institutions: N2.08 trillion (N1.70 trillion in 2021)
Interest-bearing borrowings: N1.26 trillion (N1.17 trillion in 2021)

Total equity attributable to owners of the parent entity slightly increased to N1.06 trillion as at June 30, 2022 from N1.03 trillion in 2021.

Cash flow:

Net cash of N262.39 billion was used in operating activities in June 2022 against N874.74 billion generated in June 2021.
Net cash used in investing activities fell to N275.07 billion in June 2022 from N370.46 billion in June 2021.
Net cash of N37.57 billion was generated from financing activities against N15.72 billion in June 2021.

About Access Holdings Plc

Access Holdings Plc trading as Access Corporation (‘the Corporation’) was incorporated as a public limited liability company on 10 February 2021. The Corporation is a Nigerian Exchange listed parent non-operating financial holding company for Access Bank (‘the Bank’) and the related group companies that emerged from the court-sanctioned Scheme of Arrangement between the Bank and holders of its fully paid ordinary shares of 50 Kobo each.

The Corporation’s business segments include banking, consumer lending, payment services, insurance brokerage and pension funds administration. The banking business is currently in operation while the vehicles for the other business segments are at various stages of licensing , acquisition and operational readiness as at the end of the reporting period