Wigwe's Fearless Legacy: Access Holdings Makes History, Generates N2.59tn Gross Earnings, N729bn PBT
Access Holdings Plc has hit another milestone with its latest financial year, announcing N2.59 trillion gross earnings in its audited financial statements for the year ended December 31, 2023.
A growth of about 87 per cent from N1.38 trillion reported in 2022, it was primarily driven by a 100 per cent increase in interest income and a 67.9 per cent growth in non-interest income. Thanks late Herbert Wigwe's Fearless legacy whose tenure Managing Director of Access Bank and later CEO of Access Corporation marked a phenomenon transformation of the bank and the holdco.
The holdings’ on the Nigerian Exchange Limited (NGX) recorded a robust growth in its Profits Before Tax (PBT) posting a healthy N729 billion, representing 33 5per cent year-on-year (YoY) increase from
N167.68 billion declared in 2022.
The Group’s Net Interest Income also demonstrated strong performance, soaring by 93.5 per cent YoY to N695.4 billion, compared to N359.6 billion in the previous year. The yield on earning assets also rose remarkably from 9.2 per cent in 2022 to 12.8 per cent.
Access Holdings’ Loans and Advances expanded by 60.5 per cent to N8.9 trillion, accompanied by an improvement in the non-performing loan ratio, which decreased to 2.8 per cent from 3.2 per cent in 2022.
The group closed the year with N2.18 trillion in shareholders’ funds, marking a significant 77.5 per cent growth from N1.23 trillion in FY 2022.
Commenting on the performance, Acting Group Chief Executive Officer, Access Holdings, Bolaji Agbede, in a statement said: “The group’s strong performance in 2023 reflects our commitment to delivering value to our shareholders and stakeholders amidst challenging operating environments.
“The significant growth in our earnings is a testament to the resilience, strategic focus, and efficiency of our team, and reflects the diversity of our offering across banking, pension, insurance, and payments driven by robust risk management, best-in-class corporate governance, and cutting-edge technology.
“As we look ahead, we remain committed to driving sustainable growth, consolidating our footprint, and accelerating the attainment of our 2027 strategic objectives,” the acting Group CEO stated.
Access Holdings’ regulatory ratios strengthened in 2023 as Capital Adequacy Ratios for the Group, and its flagship subsidiary, Access Bank, stood at 19.01 per cent and 21.09 per cent, respectively. The Liquidity Ratio remained robust at 51.8 per cent, well above the regulatory threshold.
“As we reflect on the results of 2023, characterised by robust growth, strategic acquisitions, and expansion into key trade hubs, I am excited about the prospects for Access Bank.
“Our relentless focus on customercentricity, digital innovation, and operational excellence has positioned us strongly to capitalise on emerging opportunities. As we enter the consolidation and efficiency phase of our Africa and international expansion strategy, we remain committed to driving sustainable growth, enhancing shareholder value, and delivering exceptional banking experiences to our customers across Africa and beyond,” the Managing Director, Access Bank, Roosevelt Ogbonna, remarked on the bank’s accomplishments.
Access Holdings’ other subsidiaries also posted strong results, as Access
Pensions Limited recorded a 75 per cent growth in gross revenues, amounting to N12.3 billion, while hydrogen payment services posted an operating income of N2.1 billion and a PBT of N161 million.
Access Holdings Plc acquired Megatech Insurance Brokers Ltd. (now known as Access Insurance Brokers Ltd.) and successfully completed a $300million capital injection into Access Banking Group, which acquired several entities, including Finibanco Angola S.A., and select Standard Chartered Bank operations in Africa.