However, despite a revenue growth of up to 42.8% or N416 billion, after-tax profit continued to decline, according to its audited financials, which were released on Thursday.
The financial services firm experienced an increase in interest revenue from lending money to borrowers of about 50% to N770 billion, but the majority of that was swallowed by interest expenditure, the money it had to pay customers in return for holding their deposits.
According to regulatory requirements, Access Holdings set aside N197.6 billion of its income pool to cover loans with questionable repayment prospects as well as the depreciation of its financial assets, which reduced profits.
The number was 138% greater than it was a year before, indicating a decline in credit quality.
Access Bank, the group’s commercial banking division, received $300 million earlier in April to support its expansion in Africa, where it has signed a number of merger agreements over the previous two years.
The process to combine its Zambian subsidiaries, Access Bank Zambia Limited and African Banking Corporation Zambia Limited into one company was started in the preceding month.
Due to an increase in credit-related fees and commissions, net fee and income for the review period increased by 23.2% to N145.7 billion.
Operating costs soared from N232.2 billion to N341.7 billion, further squeezing earnings. The biggest pain spots included IT and e-business expenses, administrative costs, as well as buildings and equipment costs.
Profit after taxes decreased by 5%, and overall profit decreased to N152.2 billion from N160.2 billion.
Access Holdings declared a final dividend per share of N1.30 in another document, bringing its year total to N1.50.
This contrasts with the N1 per share given for 2021, indicating a 50% increase in the projected cash incentive for the previous year.
Following the news of the upcoming dividend payment, Access Holdings’ shares increased by 10% at market closure in Lagos, where the stock is quoted at N9.9 per unit.
