Business
Access Holdings Surpasses N30 Trillion in Total Assets in Q1 2024
Access Holdings Surpasses N30 Trillion in Total Assets in Q1 2024
Access Holdings, a prominent banking group in Nigeria, has continued its impressive growth trajectory by reaching a milestone of N32.6 trillion in total assets as of March 31, 2024. This achievement marks a substantial 22% increase from the N26.7 trillion recorded at the end of December 2023.
The unaudited financial results for the first quarter of 2024, recently released on the NGX, reveal the remarkable performance of Access Holdings during this period. The group saw a remarkable 148% year-on-year growth in pre-tax profit, soaring to N202.7 billion from N81.7 billion in Q1 2023.
A key driver of this growth was the exceptional 189% year-on-year increase in net interest income, reaching N275.7 billion from N95.3 billion in the same period last year. The surge in pre-tax profit was also supported by other notable financial indicators:
– Net interest income after impairment charges**: N252.9 billion, up by 230% year-on-year
– Net fee and commission income**: N86.8 billion, a 91% increase year-on-year
– Net foreign exchange gain**: N215 billion, up by 91% year-on-year
– Cash and cash balances with banks**: N3.35 trillion, reflecting a 10% increase year-on-year
– Profit for the period**: N159.3 billion, a substantial 122% increase year-on-year
– Earnings per share**: N4.35, up by 111% year-on-year
– Total deposits**: N24.7 trillion, showing a 25% increase year-on-year
– Loans and advances**: N10.9 trillion, a 22% growth year-on-year
Access Bank, as the largest bank in Nigeria by total assets, has experienced significant expansion over the past five years since its merger with Diamond Bank. Just a year ago, the bank’s total assets stood at N15.7 trillion, underscoring the substantial growth to N32.6 trillion by the end of March 2024, a record high. However, when considering currency fluctuations, the dollar value of the bank has decreased compared to the previous year.
The impressive financial results of Access Bank in the first quarter of 2024 can be attributed to several key drivers. The substantial increase in net interest income, primarily stemming from loans to customers, played a pivotal role in the bank’s performance. Furthermore, a significant growth in net fees and commissions income, driven by credit-related fees and electronic banking income, contributed to the positive results.
The depreciation of the exchange rate also influenced Access Bank’s financial performance, with the bank reporting substantial forex revaluation gains. Investments were another area of strength for the group, with the securities portfolio expanding by 60% and the total treasury bills portfolio growing by 61% over the quarter. The group’s retained earnings, foreign currency translation reserve, and net foreign exchange gain all saw notable increases during this period.
In conclusion, Access Holdings’ exceptional performance in the first quarter of 2024 underscores its position as a leading banking group in Nigeria, demonstrating robust growth and financial stability amidst a dynamic economic landscape.
