Access Bank’s half-year profit expands as independent auditor raises concern over sharp increase in provision for bad debts

Access Bank Plc has recorded impressive half-year result as profit after tax grew by 42.44 per cent.

The bank result released on Thursday showed that the profit rose from N61.035 billion reported the same period of last year to N86.936 billion. The profit before tax also moved toward positive direction, increasing by 31.21 per cent to N97.496 billion from N74.306 billion posted in the comparative period of 2020.

The board of directors approved interim dividend of 30 kobo per share of 50 kobo held by investors whose names appear in the register of members as at the close of business on September 16, 2021.

Analysis of the bank result showed that Gross earnings up by 13.58 per cent to N450.621 billion from N396.757 billion reported in the corresponding period. Interest and similar income rose by 29.59 per cent to N319.734 billion from N246.723 billion, interest and similar expenses down by 0.70 per cent to N119.666 billion from N120.515 billion, bringing the net interest income to N200.068 billion from N126.207 billion made in the preceding year.

Impairment loss on financial assets increased by 74.11 per cent to N28.669 billion from N16.466 billion. Fee and Commission income also rose to N73.715 billion from N51.775 billion, representing a growth of 42.38 per cent while fee and Commission expenses surged by 34.03 per cent to N14.988 billion from N11.183 billion.

The bank’s total assets went up by 15.84 per cent to N10.054 trillion from N8.679 trillion achieve in the same period of last year. Total liability on the same vein up by 17.04 per cent to N9.279 billion from N7.928 billion.

The independent auditor, PricewaterhouseCoopers, however, noted with concern sharp increase in the provision made by the bank to make up for loans that could ultimately turn bad in its books, a trend that may keep limiting profit.

Access Bank made an allowance of N28.7 billion for that purpose, way higher than the N16.5 billion of the corresponding period of last year.

 

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