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HomeCompany NewsAccess Bank posts 40% growth in pre-tax profit to N176.7 bln in...

Access Bank posts 40% growth in pre-tax profit to N176.7 bln in 2021

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Access Bank Plc has posted 40 percent growth in pre-tax profit to N176.7 billion at the end of 2021 financial year compared with N125.9 billion in 2020.

The lender also grew its profit after tax by 51 percent to N160.2 billion and consequently the board of directors of the bank has recommended distribution of N35.6 billion to shareholders as cash dividends for the 2021 business year.

Shareholders will receive a final dividend of 70 kobo per share, in addition to interim dividend of 30 kobo per share paid earlier in the year, bringing total dividend per share for 2021 to N1.

According to the audited report and accounts of Access Bank filied with the Nigerian Exchange Limited, the bank gross earnings rose by 27 percent to N971.9 billion in 2021 from N764.7 billion in 2020.

A breakdown indicated that the core business interest incomes accounted for 62 percent while non-interest income contributed 38 percent.

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The balance sheet also improved considerably with total assets rising by 35 percent from N8.7 trillion in 2020 to N11.7 trillion in 2021. Customer deposits also rose from N5.6 trillion to N7 trillion. Net loans and advances increased from N3.6 trillion to N4.4 trillion.

The credit risk management of the bank remained increasingly efficient with the ratio of non-performing loans to gross loans and advances dropping from 4.3 percent in 2020 to 4.0 percent in 2021.

Further analysis showed Return on Average Equity (ROAE) of 17.8 percent. The bank also sustained robust capital and liquidity positions, well above regulatory levels with a Basel II Capital Adequacy Ratio of 24.5 per cent and a Liquidity Ratio of 51.0 per cent.

Chief Executive Officer, Access Bank Plc, Herbert Wigwe said the last year’s results underscored the fact that the bank’s diversified business model has continued to yield positive sustainable results.

According to him, guided by a robust risk management framework, the bank continued to grow its business cautiously while recording sound prudential ratios.

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