Economy
Access Bank Increases Dividend as 2020 Earnings Rise 15%
By Dipo Olowookere
Access Bank Plc has surprised its shareholders by increasing its final dividend payout for the year 2020 by 37.5 per cent or 15 kobo to 55 kobo from 40 kobo.
The bank, led by Mr Herbert Wigwe, is not known to pay a huge dividend like its two other tier-1 peers, GTBank and Zenith Bank, which paid N2.70 each.
In the financial statements for the year ended December 31, 2020, the lender said it intends to pay a final dividend of 55 kobo on Friday, April 30, 2021, to shareholders whose names appear on the register of members as at the close of business on Thursday, April 15, 2021.
If the cash reward is approved by shareholders at the company’s Annual General Meeting (AGM) fixed for Friday, April 30, 2021, at the Access Towers at Oniru Estate, Victoria Island, Lagos, the total dividend for the year would be 80 kobo. The bank had earlier paid an interim dividend of 25 kobo last year.
The year 2020 was very challenging for most businesses across the globe because of the COVID-19 pandemic, which forced many countries to declare a lockdown.
But in the midst of this, Access Bank managed to grow its earnings by almost 15 per cent, precisely by 14.7 per cent to N764.7 billion from N666.8 billion recorded a year earlier.
A brief analysis of the results by Business Post indicated that the financial institution recorded a decline in its interest income to N425.7 billion from N453.6 billion.
Also, the interest expense went down to N226.3 billion from N259.6 billion, leaving the net interest income lower at N263.0 billion as against the previous year’s N277.2 billion.
With a net impairment charge of N62.9 billion versus N20.2 billion in FY 2019, the net interest income after impairment charges dropped to N200.1 billion from N257.0 billion.
However, in the year under review, fee and commission income increased to N116.7 billion from N91.9 billion as a result of the significant rise in the revenue generated from its electronic banking channels (N56.1 billion versus N36.0 billion in 2019).
There was also a spike in credit-related fees and commissions (N32.5 billion versus N26.6 billion). The bank generated N15.1 billion from account maintenance charges and handling commission, higher than N14.0 billion raked from the means a year earlier.
In the year, Access Bank said it reduced its personnel expenses to N73.2 billion from N77.0 billion in 2019 and this was from the wage cut announced by Mr Wigwe last, which almost put the bank in trouble after a video he had with members of staff on this issue went viral.
Last, the lender said its wages and salaries gulped N69.0 billion in contrast to N73.2 billion used for the same purpose in 2019.
Despite some of its employees working from home as a result of the government’s directives on the restriction of movement in 2020 due to COVID-19, the other operating expenses of Access Bank rose to N215.8 billion from N151.1 billion.
The bank explained that it was because of the rise in premises and equipment costs (N15.6 billion versus N13.4 billion in 2019), AMCON surcharge of N35.4 billion in contrast to the previous year’s N22.7 billion, administrative costs of N15.5 billion as against N11.4 billion in 2019, communication expenses of N7.5 billion versus N3.3 billion in 2019, IT and e-business costs of N18.7 billion compared with N9.8 billion a year earlier, outsourcing costs of N25.1 billion versus N16.7 billion in 2019, advertisement and marketing expenses of N11.3 billion in contrast to N6.3 billion recorded a year earlier, security costs of N7.9 billion as against N4.3 billion in 2019 and stationeries, postage and printing expenses of N5.9 billion versus N1.9 billion the preceding year.
These expenses and others left Access Bank with a profit before tax of N125.9 billion in 2020 as against N111.9 billion in 2019, while the profit after tax closed at N106.0 billion versus N94.1 billion a year earlier.
In the period under consideration, the earnings per share (EPS) of Access Bank rose to N3.01 from N2.79, while the total assets increased to N8.7 trillion from N7.1 trillion, with the total liabilities jumping to N7.9 trillion from N6.5 trillion. A part of the liabilities had N5.6 trillion as customer deposits, higher than N4.2 trillion in 2019.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited recorded a 3.11 per cent week-on-week loss last week as a result of the decline suffered by 65 equities. In the preceding week, the bourse ended with 51 price decliners.
In the five-day trading week, 23 equities appreciated compared with 34 equities a week earlier, while 58 equities remained unchanged versus 61 equities in the preceding week.
Business Post reports there was no room for the bulls in the week, as all other indices closed in red, except for the sovereign bond, which finished flat.
ABC Transport lost 24.73 per cent to trade at N6.21, University Press shrank by 17.07 per cent to N5.10, Eterna crashed by 12.92 per cent to N30.00, John Holt slipped by 12.09 per cent to N14.90, and First Holdco decreased by 11.43 per cent to N62.00.
On the flip side, International Energy Insurance gained 60.62 per cent to sell for N7.26, Abbey Mortgage Bank expanded by 47.24 per cent to N9.35, Tripple Gee grew by 9.80 per cent to N4.37, Ikeja Hotel increased by 9.45 per cent to N44.00, and RT Briscoe soared by 8.86 per cent to N14.86.
At the close of business, market participants traded 3.966 billion shares worth N175.659 billion in 343,587 deals, in contrast to the 2.398 billion shares valued at N111.480 billion transacted in 241,313 deals a week earlier, which had only three trading sessions due to the Sallah holiday.
The financial services industry led the activity chart with 2.690 billion stocks sold for N69.975 billion in 134,882 deals, contributing 67.83 per cent and 39.84 per cent to the total trading volume and value, respectively.
The services sector exchanged 323.601 million shares worth N6.443 billion in 25,906 deals, and the ICT segment traded 176.039 million equities valued at N27.892 billion in 40,837 deals.
Access Holdings, Abbey Mortgage Bank, and Sterling Holdco accounted for 1.290 billion units worth N17.560 billion in 17,768 deals, contributing 32.53 per cent and 10.00 per cent to the total equity turnover volume and value, respectively.
By Adedapo Adesanya
The duo of MRS Oil and FrieslandCampina Wamco Nigeria Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Friday, June 5.
MRS Plc lost N19.00 during the session to sell at N171.00 per share compared with Thursday’s value of N190.00 per share, and FrieslandCampina Wamco Nigeria Plc depreciated by N8.70 to finish at N181.68 per unit compared with the preceding session’s N190.38 per unit.
As a result, the market capitalisation further lost N22.59 billion to close at N2.607 trillion versus the N2.630 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropped 37.76 points to settle at 4,358.32 points, in contrast to the previous day’s 4,396.08 points.
The alternative stock market closed the last trading day of this week with a price gainer, Central Securities Clearing System (CSCS) Plc, which gained 6 Kobo to quote at N78.40 per share compared with the preceding session’s N78.34 per share. However, it could not prevent the market from going down at the close of business.
Yesterday, the volume of securities bought and sold by investors went down by 50.0 per cent to 140,345 units from the preceding day’s 280,714 units, the value of stocks decreased by 16.5 per cent to N17.9 million from the previous session’s N21.5 million, and the number of deals carried out by market participants fell by 35.7 per cent to 27 deals from the 42 deals recorded on Thursday.
When trading activities closed for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
By Dipo Olowookere
Renewed interest in financial stocks and others lifted the Nigerian Exchange (NGX) Limited by 0.15 per cent on Friday.
Customs Street closed higher yesterday despite the 1.37 per cent loss recorded by the consumer goods sector as a result of profit-taking.
This was offset by gains in the other key sectors of the local bourse, as the insurance counter chalked up 1,14 per cent. The banking space appreciated by 0.90 per cent, the industrial goods segment grew by 0.46 per cent, and the energy sector expanded by 0.01 per cent.
Consequently, the All-Share Index (ASI) went up by 366.00 points to 242,593.31 points from 242,227.31 points, and the market capitalisation gained N235 billion to close at N155.594 trillion compared with the previous day’s N155.359 trillion.
The trio of International Energy Insurance, Abbey Mortgage Bank, and DAAR Communications improved by 10.00 per cent each yesterday to N7.26, N9.35, and N1.98, respectively, while Zichis advanced by 9.39 per cent to N32.38, with Sovereign Trust Insurance up by 8.70 per cent to N2.50.
On the flip side, Academy Press lost 9.84 per cent to quote at N8.25, University Press depreciated by 9.73 per cent to N5.10, Africa Prudential dipped by 2.63 per cent to N12.95, Chams crumbled by 2.44 per cent to N4.00, and International Breweries slipped by 1.59 per cent to N12.35.
Business Post reports that the market breadth index was positive during the session after recording 37 appreciating equities and 14 depreciating equities, implying strong investor sentiment.
Abbey Mortgage Bank led the activity chart with a turnover of 164.1 million units worth N1.5 billion, Ellah Lakes sold 76.7 million units for N767.2 million, Access Holdings transacted 44.8 million units valued at N1.1 billion, Linkage Assurance exchanged 23.0 million units worth N41.2 million, and The Initiates traded 20.2 million units for N562.1 million.
At the close of trades, market participants transacted 608.5 million units worth N32.0 billion in 53,826 deals versus the 588.5 million units valued at N27.9 billion executed in 57,352 deals in the previous session. This showed that the number of deals eased by 6.15 per cent, the volume of transactions rose by 3.40 per cent, and the value of transactions soared by 14.70 per cent.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn