Access Bank Nigeria Plc has released its Financial Year 2017 results displaying a growth in Gross earnings in the year by 20.39% to NGN459.08 billion while the Profit Before Tax (-11.36%) and Profit After Tax (-13.23%) declined to NGN80.07 billion and NGN61.99 billion respectively .
According to the release the board is recommending a dividend of NGN0.65 which is unchanged from the previous year’s.The yield is 5.53% on Wednesday’s closing stock price of NGN11.75.
The Interest income increased by 29.35% to NGN319.85 billion,it increased at a slower pace than Interest expense which upped by 44.63% to NGN156.40 billion, resulting in a 17.47% increase in net interest income, lower than the 32.04% rise recorded in the previous year.
As a result, net interest margin dipped 40 bps to 5.80%, from 6.20% in the previous year. Asset yield was 11.30% from 11.10% in 2016, while cost of fund increased to 5.10% from 4.30% in the previous year.
NIR inched higher by 4.26% to NGN139.14 billion, supported by the surge in forex income to NGN107.93 billion, from NGN3.60 billion in the previous year, as well as marginal improvement in net fee and commission income (+3.16%). Both muted the significant declines in net trading (-160.68%) and other incomes (-59.80%).
The decline in net trading income follows a 178.38% downturn in return on derivative instruments, which dropped to a loss of NGN39.27 billion, from a gain of NGN50.11 billion in the previous year.While Provision for credit losses was higher by 57.0% at NGN34.47 billion – 63.29% higher than we expected. Accordingly, cost of risk increased to 1.70%, from 1.30% in the previous year. CAR dropped 140 bps to 21.10%, but remained well above the regulatory requirement.
The increased loan loss provision matched the 270 bps increase in the NPL ratio to 4.80%, against 2.1% recorded in the previous year.
A dividend of NGN0.65 was declared, unchanged from the previous year, and yielding 5.53% on today’s closing price of NGN11.75.