Access Bank's Parent Company, Access Holdings, Generates N250 Billion in Income in 3 Months
- Access Holdings have seen a massive jump in its profit in the first quarter of this year.
- The company's profit surged to N250 billion in the first three months of 2023
- The increase represents 56.6% of the income generated during the period under review
Access Holdings, the parent company of Access Bank, has seen its income grow by 56.6%. Despite the Central Bank of Nigeria's (CBN) interest rate increase, it utilizes shareholders' resources to generate higher profits.
BusinessDay reports that interest income by the company grew to N250.98 billion in March this year as against N160.317 billion recorded in the same period of last year.
Source: UGC
Access Bank sees an increase in customer deposits.
The company's investment in security also contributed to the increase in interest income as it increased by 37.6% to 87.1% in March 2023, as against N63.3 billion recorded in the same period of the previous year.
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In its financial statement, Access Holdings said it experienced increased interest income on investment securities due to increased volume and improved deposit yield.
The lender's interest expense also spiked by 84% to N158.9 billion as of March 2023, from N86.3 billion recorded in the same period in 2022.
The holding company said customers' deposits drove interest expenses during the period.
An analysis of the interest expenses showed that customer deposits increased by 82.34% to N98.1 billion in the period under review from N53.8 billion recorded in the same quarter of the year before.
Interest-bearing borrowings and other borrowed funds also increased, and additional borrowed funds spiked by 27% in March this year.
The company saw an increase in fees and commission grow by 8.8% to N61.3 billion in the review period from N56.3 billion recorded in the year before.
Pre-tax profit accounted for N81.6 billion in the review period from N65.6 billion recorded in the same quarter of the year before.
It also recorded a 24% increase in profit for the period, amounting to N71.7 billion from N57.8 billion recorded in the same quarter last year.
The company had a massive jump in net cash
Cash and its equivalents at the end of the review period stood at N1.174 trillion from N1.23 trillion recorded in the same quarter of last year.
The company generated net cash from operating expenses for the first quarter of 2023, amounting to N176.3 billion, a decline of N345.3 billion recorded in the same period in 2022.
The company also recorded a decline in net cash used in investing activities for Q1 of this year, which amounts to N194.8 billion from N45.53 billion recorded in the same period of 2022.
The company witnessed a decline in cash generated from or used in financing activities from N52.9 billion to N18.62 billion recorded in the same quarter of 2022.
Access Bank, UBA, other Nigerian banks bleed, Incur N284 billion losses over Ghanaian Bonds default
Legit.ng reported that several Nigerian banks recorded huge losses on their investments in Ghanaian Bonds, resulting in delays in releasing their financials.
Ghana is currently reeling from a debt crisis caused by the country’s fiscal revenue shortfalls.
The current global crisis has mounted severe pressure on the country’s economy, resulting in a ballooning inflation rate, exchange rate devaluation, and escalating national debt.
Source: Legit.ng
