ACCESS HOLDINGS GROWS REVENUE TO ₦2.2 TRILLION IN H1 2024
Lagos, Nigeria – September 21, 2024: Access Holdings Plc, a leading global financial institution, announced its half-year audited financial results for the period ended 30 June 2024. The results underscore the company's continued resilience, focus on delivering sustainable performance and commitment to creating long-term value for shareholders.
Performance Highlights
Access Holdings Plc demonstrated strong
performance across all key balance sheet indicators and continues to maintain a
well-structured, healthy, and diversified financial position. This is evident
in the resilient half year results from the banking franchise operating in
twenty-two markets across four continents and the non-banking subsidiaries
including Access Pensions, Hydrogen Payments, and Access Insurance Brokers.
In half year 2024, total assets and
shareholders’ equity stood at ₦36.5 trillion and ₦2.8 trillion, respectively.
This represents a year to date of growth of 37.1% and 29.8%, respectively.
Customer deposits increased by 31.3%, from ₦15.3 trillion in December 2023 to
₦20.1 trillion by half year 2024. Gross loans and advances also saw an increase
of 37.6%, growing from ₦8.9 trillion in December 2023 to ₦12.3 trillion by half
year 2024, from organic loan growth and the impact of foreign
currency-denominated loans.
Access Holdings reported triple-digit
growth across all profitability metrics, with gross revenue rising by 133.5%
year-on-year, from ₦940 billion in half year 2023 to ₦2.2 trillion in half year
2024. This increase was supported by higher interest and non-interest earnings
in the period. Interest income surpassed the ₦1 trillion mark, from the
expansion of risk assets and effective pricing, leading to a 142% growth from
₦606.8 billion in half year 2023 to ₦1.47 trillion by half year 2024.
Non-interest income also grew by 117%, rising from ₦333.4 billion in half year
2023 to ₦723.6 billion in half year 2024.
Profit before tax increased by 108.2%
year-on-year, from ₦167.6 billion in half year 2023 to ₦348.97 billion in half
year 2024, while profit after tax rose by 107.7%, from ₦135.4 billion to ₦281.3
billion over the same period. This resulted in a 103% growth in earnings per
share (EPS), which increased from ₦3.74 in half year 2023 to ₦7.58 in half year
2024.
Cost-to-income ratio (CIR) remained
relatively flat at 60.4% in half year 2024 despite double digit growth in
inflation and devaluation in the same period. Cost to income was moderated as
revenue outpaced operating expenses. The increase in operating expenses was
primarily from ongoing IT upgrade and integration, double-digit growth in AMCON
levy and NDIC premium which increased by 63.1% and 37%, respectively, and will
normalise in the second half of the year, inflation-related cost-of-living
adjustments, higher energy expenses, and the currency conversion impact of
subsidiaries’ operating costs.
To maximise value for our shareholders,
Access Holdings Plc has declared an interim dividend of 45 kobo per share (half
year 2023, 30 Kobo), representing a 50% increase in dividend payout.
Banking Group Performance
Despite the challenging operating
environment and tight monetary policy stance, Access Banking Group recorded
strong year-on-year growth across all performance metrics, with Interest and
non-interest income contributed significantly to gross earnings. Net interest income
grew by 131% from N232.2 billion in half year 2023 to N536.7 billion in half
year 2024. Fees and commissions increased by 94% year on year from N119.8
billion to N232.5 billion from higher transaction volumes on our digital
channels, credit related fees and card payments.
The Banking Group subsidiaries
contributed 55% to the Group's Profit Before Tax (PBT), demonstrating the
significant impact of their operations and growing importance in driving
overall profitability. Year-on-year, their PBT performance grew by 218% from
N63.3 billion to N201.7 billion.
As part of our ongoing strategic
expansion beyond Nigeria, we have successfully completed the full integration
of the merged entities in Zambia and Tanzania operations. These developments
not only enhance our presence in key markets but also create significant value
by expanding our customer base, strengthening cross-border banking
capabilities, and fostering increased operational efficiency across our
subsidiaries.
Regulatory Ratios
Through our proactive risk management
approach, the non-performing loan (NPL) ratio closed at 2.72% in half year
2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR)
remained strong at 19.8%. Our loan-to-funding and liquidity ratios also
improved to 63.9% and 57.2%, respectively. All prudential ratios exceeded
regulatory requirements, underscoring our ability to maintain a robust and
liquid balance sheet.
Non-Banking Subsidiaries
The operating performance of our
non-banking subsidiaries demonstrates a consistent growth trajectory. Access
Pensions has achieved a remarkable 162.1% increase in Assets Under Management
(AUM), rising from ₦1.1 trillion in December 2023 to ₦2.9 trillion in the first
half of 2024. This growth is driven by organic expansion in RSA accounts, new
mandates, and synergies from the merger with ARM Pensions. As a result, Access
Pensions has positioned itself as one of the top two largest pension fund
administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts.
Furthermore, the operating income for the pension business saw a substantial
increase of 190%, climbing from ₦5.6 billion in H1 2023 to ₦16.2 billion in H1
2024.
Hydrogen Payments achieved a remarkable
1,871% growth in top-line revenue compared to H1 2023, reflecting its
exceptional performance and contribution to the profitability of the holding
company. The total payment volume (TPV) processed surged by 306%, reaching
N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023. Notably, 90% of
these transactions were processed through the Hydrogen switching platform,
underscoring its reliability and dependability, particularly for small
businesses across Nigeria. The platform's ability to handle large transaction
volumes with minimal downtime has significantly improved operational
efficiency, contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted
significant growth with an 83% increase in gross premiums written and a 60%
rise in commission income in the first year of operations. Specifically, gross
written premiums surged from N2.3 billion to N5.9 billion by half year
2024.
Regulatory Ratios
Through our proactive risk management
approach, the non-performing loan (NPL) ratio closed at 2.72% in half year
2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR)
remained strong at 19.8%. Our loan-to-funding and liquidity ratios also
improved to 63.9% and 57.2%, respectively. All prudential ratios exceeded
regulatory requirements, underscoring our ability to maintain a robust and
liquid balance sheet.
Non-Banking Subsidiaries
The operating performance of our
non-banking subsidiaries demonstrates a consistent growth trajectory. Access
Pensions has achieved a remarkable 162.1% increase in Assets Under Management
(AUM), rising from ₦1.1 trillion in December 2023 to ₦2.9 trillion in the first
half of 2024. This growth is driven by organic expansion in RSA accounts, new
mandates, and synergies from the merger with ARM Pensions. As a result, Access
Pensions has positioned itself as one of the top two largest pension fund
administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts.
Furthermore, the operating income for the pension business saw a substantial
increase of 190%, climbing from ₦5.6 billion in H1 2023 to ₦16.2 billion in H1
2024.
Hydrogen Payments achieved a remarkable
1,871% growth in top-line revenue compared to H1 2023, reflecting its
exceptional performance and contribution to the profitability of the holding
company. The total payment volume (TPV) processed surged by 306%, reaching
N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023. Notably, 90% of
these transactions were processed through the Hydrogen switching platform,
underscoring its reliability and dependability, particularly for small businesses
across Nigeria. The platform's ability to handle large transaction volumes with
minimal downtime has significantly improved operational efficiency,
contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted
significant growth with an 83% increase in gross premiums written and a 60%
rise in commission income in the first year of operations. Specifically, gross
written premiums surged from N2.3 billion to N5.9 billion by half year 2024.
Our agile execution strategy and
customer-centric approach position us as a market leader in Nigeria, while
simultaneously enabling us to consolidate market share in existing locations
beyond Nigeria and explore opportunities in new geographies under consideration
for expansion.
Outlook for the Rest of the Year
Access Holdings remains confident in its
ability to surpass the growth momentum achieved in the first half of the year
as we look ahead to the second half. Our strategic priorities will remain
focused on scaling non-banking segments, expanding our digital footprint, and
solidifying our presence in high-growth African and international markets.
These are geared towards accelerating revenue diversification and ensuring
long-term sustainable value creation for our shareholders.
Furthermore, we are fast-tracking the
completion of our technology infrastructure integration and upgrades, which
will significantly enhance operational efficiency across the group. This
technology transformation will strengthen our digital capabilities, allowing us
to deliver superior services to our customers, drive operational synergies, and
optimise cost.
Our strategic focus on non-banking
segments, digital expansion, and geographic diversification will continue to
create lasting value for shareholders, positioning the group to capitalise on
emerging opportunities and sustain growth in the long term.
We recently concluded our rights issue
of N351 billion, and we are awaiting the Central Bank of Nigeria (CBN) capital
verification and the Securities and Exchange Commission (SEC) approval for the
allotment of rights. We will keep our investors and shareholders informed as we
proceed with the exercise.
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Access
Holdings Plc
Access
Holdings Plc is a leading multinational financial services group that offers
commercial banking, lending, payment, insurance, and asset management services.
Headquartered in Lagos, Nigeria, Access Holdings operates through a network of
more than 700 branches and service outlets, spanning three continents, 22
countries, and 60+ million customers.
Access
transitioned into a holding company to drive rapid growth and become a
full-scale ecosystem player offering interconnected services across customer needs.
Established
in 2022, Access Holdings Plc consists of the Access Bank Group; Access
Pensions; a Payment and Switching Services Company; a Digital Lending Company,
and an Insurance Brokerage Company. The banking vertical serves its various
markets through four business segments: Retail, Business, Commercial and
Corporate, and has enjoyed what is it arguably Africa’s most successful banking
growth trajectory in the last eighteen years, becoming one of Africa’s largest
retail banks by customer base and Sub-Saharan Africa's largest bank by total
assets.
Access
Holdings strives to deliver sustainable economic growth that is profitable,
environmentally responsible, and socially relevant, helping customers to access
more and achieve their dreams.
For
media inquiries, please contact:
Olakunle
Aderinokun
Head,
Media Relations
Access
Holdings Plc
+2348033204315
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