Access Holdings Plc reported its 2023 Half-year results showing pre-tax profits grew by 71.39% year on year, reaching N167.601 billion.
Key highlights H1 2023 vs. H1 2022:
- Gross earnings; N940.311 billion +58.89% YoY
- Interest Income N606.837 billion +63.00% YoY
- Interest Expense; N382.598 billion +118.88% YoY
- Net interest income; N224.239 billion +13.54% YoY
- Net impairment charge on financial assets, N37.175 billion +0.85% YoY
- Net interest income after impairment charges; N187.064 billion +16.45% YoY
- Net fee and commission income N88.026 billion, +58.78% YoY.
- Fair value and foreign exchange gain/(loss), N192.047 billion +49.74% YoY
- Profit for the period N135.441 billion +52.37% YoY.
- Loans and advances to customers N6.71 trillion +31.54%.
- Cash and Balances N2.078 trillion +5.47%
- Total Assets N20.853 trillion +39.04%.
- Customers’ deposits N12.508 trillion +35.20%.
Insights: Access Holdings’ significant growth in pre-tax profit in H1 2023 can be attributed to the substantial gains in net fair value and foreign exchange, primarily attributed to significant fair value gains on equity investments and gains from foreign exchange and fixed-income securities trading during the first half of 2023.
- Also, it reported a 63% growth in interest income. This growth was primarily driven by increased interest income generated from loans and advances extended to customers and investments in securities.
- On the flip side, the bank experienced a significant growth in interest expenses, primarily driven by higher interest expenses related to customer deposits, which grew by 33.31% year-on-year, reaching N318.526 billion. As a result, the bank’s net interest income growth moderated to 13.54% YoY.
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Much is expected from Access Holdings than 30k as interim. If the like of Zenith, GTCO and UBA can pay 50k and Fidelity 25k as interim, we expect Access to do better than that.
Why is their profit so low. Did they not recognise gains from foreign exchange as a result of naira devaluation or did they take massive provisions?
This interim dividend is very poor when compared to other company in the sector.
Is good to buy access shares now or later around first quarter next year?
The long awaited interim dividend declaration has finally arrived.
I am highly disappointed .30kobo is too low. ,given the fact that UBA had declared 50kobo interim dividend.
I think it is a mistake.I look forward to Access Holdings reversing this poor payout.
30k Interim dividend from Access Co is below expectation. I perceive the likes of UBA posting a better full year result.
Payment of dividend is a function of cash liquidity of the company. Access bank may not have sufficient cash flow to pay much interim dividend now. They could make it up during the final dividend payment time. I do not expect the low interim dividend declared to impact their share price.
I’m expecting Access Bank share price to drop from Monday, as a result of the perceived “poor” interim dividends. So, it appears we have another opportunity to buy the shares at a cheaper price.
Sure,the higher the dividends paid the investors the better for a company. Good dividends drive investors appetite to invest more ( right or IPO issues). 0.30 kobo is silly, but let’s watch to see what management does at year end.