On Thursday, Access Holdings Plc reported significant growth in its profits before tax, reaching N729bn in 2023, showing a 335% increase compared to 2022. The company’s consolidated and separate financial statements for the year ended December 31, 2023, also revealed an 87% increase in gross earnings to N2.59tn, up from N1.38tn in 2022.
During the same period, the group’s gross earnings saw an 87% surge to N2.59tn from N1.38tn in 2022.
Olakunle Aderinokun, the Head of Media and Public Relations at Access Holdings Plc, indicated in a statement sent to PUNCH Online on Thursday that the growth witnessed by the group in the reviewed financial year was chiefly driven by a 100% increase in interest income and a 67.9% growth in non-interest income.
The group’s net interest income witnessed a 93.5% increase to N695.4bn compared to N359.6bn in the preceding year. Additionally, the yield on earning assets rose from 9.2% in 2022 to 12.8%.
Loans and advances expanded by 60.5% to N8.9tn, following an enhancement in the non-performing loan ratio, which decreased to 2.8% from 3.2% in 2022.
Ending the year with N2.18tn in shareholders’ funds, the group marked a 77.5% growth from N1.23tn in 2022.
Commenting on the performance, Bolaji Agbede, the Acting Group Chief Executive Officer of Access Holdings Plc, stated: “The Group’s robust performance in 2023 mirrors our dedication to delivering value to our shareholders and stakeholders amidst challenging operational environments.
“The substantial growth in our earnings validates the resilience, strategic focus, and efficiency of our team, reflecting the diversity of our offerings in banking, pension, insurance, and payments driven by robust risk management, top-notch corporate governance, and cutting-edge technology.
“As we look forward, our commitment remains unwavering in propelling sustainable growth, consolidating our presence, and expediting the achievement of our 2027 strategic goals.”
Access Holdings’ regulatory ratios strengthened in 2023 with capital adequacy ratios for the group and its primary subsidiary, Access Bank, standing at 19.01% and 21.09%, respectively. The liquidity ratio remained strong at 51.8%, well above the regulatory threshold.
Roosevelt Ogbonna, the Managing Director/CEO of Access Bank, commented: “As we reflect on the outcomes of 2023, characterized by robust expansion, strategic acquisitions, and entrance into vital trade hubs, I am optimistic about Access Bank’s prospects. Our relentless focus on customer-centricity, digital innovation, and operational excellence positions us strongly to capitalize on emerging opportunities. As we delve into the consolidation and efficiency phase of our Africa and international expansion strategy, our commitment stays firm in driving sustainable growth, enriching shareholder value, and delivering exceptional banking experiences to our clients across Africa and beyond.”
Other subsidiaries of Access Holdings also delivered strong results, with Access Pensions Limited achieving a 75% growth in gross revenues, totaling N12.3bn, and Hydrogen Payment services recording an operating income of N2.1bn and a PBT of N161m.
The Group has proposed a final dividend of N1.80 kobo per share for the 2023 financial year, making the total dividend payment N2.10 kobo per share with a cumulative value of N74.6bn.
Aigboje Aig-Imoukhuede, the Chairman of Access Holdings Plc, affirmed, “As we navigate this transformative phase, we maintain confidence in the Group’s leadership to sustain this upward trajectory and set the benchmark for financial service groups in the continent. Access Holdings boasts a rich legacy of excellence, and we will continue bestowing unmatched value to our stakeholders.”