Access Bank Profit Sheds 0.7% to N40.9bn in Three Months
By Dipo Olowookere
Access Bank Plc on Thursday announced a profit after tax of N40.9 billion for the first quarter of 2020, lower than the N41.2 billion declared in the same time of last year by 0.73 percent.
However, in the financial statements filed to the Nigerian Stock Exchange (NSE), the lender said its profit before tax increased to N46.2 billion in the period under review from N45.1 billion in the corresponding period of 2019. The earnings per share (EPS) dropped to N1.21 from N1.39.
A look at the top line of the earnings showed that interest income grew to N131.9 billion in the period ended March 31, 2020 from N110.8 billion, while the interest income increased to N59.7 billion from N53.9 billion, with the net interest income rising to N72.7 billion from N56.8 billion.
Access Bank said in the first three months of this year, it had a net impairment charge of N8.6 billion, higher than N3.4 billion in the same period of 2019. Also, its net interest income after impairment charges increased to N63.6 billion from N53.5 billion.
In the results analysed by Business Post, the lender recorded a fee and commission income of N27.9 billion in Q1 2020 compared with N15.6 billion.
This was boosted by significant rise in channels and other e-business income (N11.5 billion in Q1’20 versus N3.6 billion in Q1’19), increase in commission on foreign currency denominated transactions to N1.6 billion from N572.8 million.
Also, a rise in the account maintenance charge and handling commission to N3.9 billion from N2.2 billion contributed to the increase in the fee and commission income as well as a growth in retail account charges to N162.3 million from N41.7 million.
In the first quarter of this year, the fee and commission expense of Access Bank increased to N4.9 billion from N2.6 billion in the corresponding period of last year and this was majorly because of the 88 percent increase in e-banking expense and 149 percent rise in bank and electronic transfer charges.
Fees and commissions expenses are fees charged for the provision of services to customers transacting on alternate channels platform of the bank and on the various debit and credit cards issued for the purpose of these payments. They are charged to the bank on services rendered on internet banking, mobile banking and online purchasing platforms.
According to the lender, it raked N21.8 billion as other operating income in Q1 2020, higher than N7.8 billion, while personnel expenses rose to N19.6 billion from N12.8 billion, with other operating expenses rising to N63.6 billion from N37.4 billion.