Access Holdings Plc, Nigeria’s largest bank by total assets, has announced impressive financial results for the second quarter of 2024, solidifying its position as a leader in the banking industry. The bank’s pre-tax profit of N146.1 billion represents a substantial growth from last year’s performance, contributing to a half-year profit total of N348.9 billion, up from N167.6 billion in the same period last year.
The bank’s quarterly report, published on the Nigerian Exchange (NGX), showcases remarkable year-on-year growth in several major income lines. Total interest income rose by 113% to N752.5 billion, while net interest income increased by 84.3% to N237.6 billion. Operating income also reflected a year-on-year growth of 132.5% to N585.4 billion. These impressive figures demonstrate Access Holdings’ ability to generate revenue across various streams.
However, the bank’s operating expenses rose significantly, increasing by 164.7% to N439.7 billion. This surge in expenditure was largely driven by personnel expenses, which skyrocketed by 143.9% to N158.8 billion, indicating a likely increase in hiring and promotions. The bank’s headcount increased from 7,567 to 8,009, with managerial positions growing significantly. Other costs contributing to this increase included IT and e-business expenses, which rose by 265% to N111.2 billion, along with a notable rise in travel expenses.
Despite the rise in operating expenses, Access Holdings’ revenue streams remained robust. The bank accumulated interest income of N1.4 trillion in the first half of the year, primarily from customer loans and advances. Of this amount, N691.8 billion stemmed from loans to customers. Additionally, the bank generated N250.9 billion in fees and commissions during this period, driven mainly by credit-related fees, e-business income, and account maintenance charges.
Access Holdings’ foreign subsidiaries also contributed significantly to the overall profit. Access Bank UK and Access Bank Ghana reported pre-tax profits of N111.1 billion and N40 billion, respectively. However, Access Bank’s subsidiaries in South Africa and Kenya posted losses of N7.6 billion and N3 billion. The bank’s newly launched FinTech venture, Hydrogen Payment Services, reported a pre-tax profit of N238 million, marking an improvement from N161 million in the previous year.
The bank’s newly acquired pension firms also reported strong revenues, contributing positively to Access Holdings’ financial outlook. This diversification of revenue streams demonstrates the bank’s commitment to exploring new opportunities and expanding its market presence.
In conclusion, Access Holdings’ robust half-year results indicate a strong growth trajectory despite rising operating costs. As the leading bank in Nigeria, this performance reflects the institution’s resilience and adaptability in a challenging economic landscape. Investors and stakeholders will be keen to observe how Access Holdings navigates its increasing expenses while continuing to expand its market presence.
Looking ahead, Access Holdings is well-positioned to maintain its market leadership. The bank’s strategic focus on digital transformation, customer-centricity, and innovation will likely drive continued growth and profitability. As the Nigerian banking industry continues to evolve, Access Holdings remains a key player, shaping the future of financial services in the region.
The bank’s commitment to corporate social responsibility and community development also underscores its dedication to creating long-term value for stakeholders. With a strong foundation in place, Access Holdings is poised to navigate the complexities of the banking industry, emerging stronger and more resilient.
