Banking
Key Highlights From Access Bank H1 2017 Conference Call & Earnings Presentation
By Modupe Gbadeyanka
Yesterday, Access Bank held its H1 2017 Conference Call & Earnings Presentation and Business Post brings to its readers some key highlights from the call.
The lender, which boats of 4.6 million cards, 1734 ATMs, 385 branches and 9628 POS terminals, said in the presentation that its strong earnings for the period, N246 billion against N174 billion last year, was on the back of interest and non-interest income growth during the period reflecting improved returns.
Access Bank said it hopes to conclude the development of and commence implementation of its new 5 year (2018-2022) Rolling Plan
It further said it also hopes to intensify low cost deposits drive to reduce funding costs, and deepen retail market penetration to diversify income streams, particularly transaction banking income growth, and as well cautiously grow loan portfolio in light of macro realities, whilst upholding proactive risk management principles in order to maintain asset quality within acceptable limits.
Here are the key highlights below:
Gross earnings up 42% y/y to ₦246.6bn in H1’17 (Q1’16: ₦80.3bn) driven by a 44% and 37% increase in interest income and noninterest income of ₦161.9bn and ₦84.4bn, respectively during the period
- Interest income drivers:
− 35% y/y growth in interest from Loans and Advances as a result of asset re-pricing on the back of high interest rate environment
− 82% y/y increase in interest from investment securities, to ₦37.5bn (H1’16: ₦20.7bn) on the back of growth in investment securities
- Non-Interest Income drivers:
− Strong y/y growth in net trading income of ₦55.4bn (+152% y/y) driven by increase in the Bank’s foreign exchange income resulting from trading activities
Operating expenses up 38% to ₦105.0bn from ₦76.0bn in
H1’16 driven by a combination of:
− Increased regulatory costs
− The impact of devaluation and inflation on costs
− Continuous investments in our channels, distribution network, service quality and brand enhancement
- Consequently, cost-to-income ratio increased to 62.7% in H1’17 from 58.4% in the corresponding period of 2016
- We expect cost to income to normalize at 55% by year end 2017
Net impairment charges on credit losses were relatively flat y/y at ₦10.4bn in H1’17 (H1’16: ₦10.2bn). Collective impairments were up 56% y/y to ₦6.0bn arising from specific assets that were watch listed
- Cost of risk improved 10bps y/y to 1.0% from 1.1% in H1’16
- Net loans and advances stood at ₦1.79trn as at Jun’17 compared with ₦1.86trn in Dec’16 largely due to cautious asset growth given macro uncertainties
- Foreign currency denominated loans declined to $1.76bn by Jun’17 down 12% from $2.19in Dec’16 reflecting the Bank’s deliberate strategy to de-risk the loan portfolio
- FCY loans to total loans closed at 40% in Jun’17, down 200bps from 42% in Dec’16
- Loan-to-deposit ratio (inclusive of interest-bearing borrowings) stood at 74.3% as at Jun’17 (Dec’16: 74.0%)
Customer deposits stood at ₦1.90trn in Jun’17 (Dec’16: ₦2.09trn) on the back of the improved FX liquidity as deposits accumulated for FX purchase in 2016 were utilized
- Consequently, FCY contribution to total deposits declined 40bps to 30% in Jun’17 (Dec’16: 34%)
- Subsidiaries’ contribute 25% to total Group deposits, largely made up of low-cost savings Capital Adequacy Ratio (CAR) increased to 21.6%, up 60bps from 21% in Dec’16, reflecting the Group’s robust capacity for growth
- Risk-weighted assets remained relatively flat at ₦2.36trn on the back of slowed loan growth during the period
- Liquidity Ratio improved 180bps y/y to 45.4% in Jun’17 (Dec’16: 43.6%), reflecting the Bank’s improved ability to meet short-term obligations Increased e-channels adoption by customers (Internet/Mobile Banking, PayWithCapture, ATM & POS, etc)
- Improved efficiency, stability, ease of use and patronage on the PaywithCapture platform
- Seasonal and continuous customer rewards program to induce spending habit of customers
- Effective and enhanced call center engagements
- Account dormancy declined to 6% demonstrating renewed customer interest on the back of intensified engagement efforts and the migration of customer of alternative channels
Subsidiaries contribution to the group’s performance improved significantly in H1’17, recording total subsidiary profit before tax of ₦6.7bn up 56% y/y (H1’16: ₦4.3bn)
- Total assets from subsidiaries grew 18% to ₦711bn y/y largely driven by business operations in UK and Ghana, but reduced 5% q/q (Q1’17: ₦749bn)
• Zambia recorded a loss of ₦0.9bn driven by lower earnings and higher expenses as a result of for the period.
By Modupe Gbadeyanka
About N2 billion is expected to be used to finance renewable energy products for customers by the end of 2026 in an effort to accelerate Nigeria’s clean energy transition.
To meet this goal, Sterling Bank is launching Sterling Solar Financing Hubs inside StarTimes retail outlets to embed on-the-spot solar financing at the point of purchase.
From the N2 billion earmarked for this initiative, N600 million has already been used up.
Under this programme, customers can now walk into participating outlets, select their preferred solar solution, receive financial guidance from dedicated Sterling Solar Financing Advisors, and begin the financing process immediately, subject to the bank’s credit assessment.
The first phase of the rollout commenced this July with five Solar Financing Hubs across Lagos, located in Lekki, Ikeja, Festac, Surulere, and Victoria Island.
The network will expand rapidly to 46 StarTimes outlets nationwide before the end of the third quarter of 2026, with a view to extending the model to more than 200 StarTimes locations nationwide.
Both parties have promised to continue working together to democratise access to clean energy financing, empowering more Nigerians to solarise their homes and businesses while contributing to a greener future.
“Sterling exists to enrich lives, and we believe that access to clean, reliable energy should be within everyone’s reach. Through this partnership with StarTimes, we are democratising access to solar by bringing financing directly to the point of need, enabling more families and businesses to transition to sustainable energy without the burden of prohibitive upfront costs. This is about unlocking opportunity, improving livelihoods, and powering Nigeria’s future,” the Divisional Head of Renewable Energy and Mobility at Sterling Bank, Mr Darlington Nwankwo, said.
Also commenting, the Vice President of StarTimes Nigeria, Mr Eric Xiao, said, “With the rollout of the Sterling Solar Financing Hubs, we are doing more than just selling solar products; we are building a sustainable energy ecosystem. By integrating StarTimes’ extensive service network with Sterling Bank’s professional financial services, we are significantly lowering the barrier for Nigerian households and small businesses to access clean energy.
“Moving forward, we will continue to deepen this partnership, ensuring that more Nigerians can enjoy reliable, affordable, and smart energy solutions, ultimately turning our vision of energy accessibility into a reality for all.”
By Modupe Gbadeyanka
The Nigeria Business Summit Regional Tour of Stanbic IBTC Bank made a detour to Jogor Centre, Ibadan, Oyo State, on Wednesday, July 15, 2026, to empower Micro, Small, and Medium Enterprises (MSMEs).
The event brought together business leaders, development partners and government representatives to discuss pathways for sustainable enterprise development across the South-West.
Participants engaged in practical masterclasses on export opportunities; access to finance and business growth strategies; gaining actionable insights into market expansion; trade documentation; credit readiness; financial record-keeping; and structured financing solutions designed to support long-term business success.
The Head of Enterprise Banking at Stanbic IBTC Bank, Ms Olajumoke Bello, informed participants that the programme is part of the lender’s commitments to supporting MSMEs through practical business education, strategic partnerships and improved access to growth opportunities.
The Executive Director of Business and Commercial Banking at Stanbic IBTC Bank, Mr Remy Osuagwu, on his part, said, “Our ambition is to be more than a financial institution to Nigerian businesses. We want to be a trusted growth partner, providing the financing, business insights and advisory support entrepreneurs need to build sustainable enterprises and unlock new opportunities.”
Similarly, the chief executive of Stanbic IBTC Bank, Mr Wole Adeniyi, who reinforced the company’s commitment to enterprise development, highlighted the importance of providing businesses with the right support structures to enable sustainable growth and long-term competitiveness.
“At Stanbic IBTC, we believe that sustainable economic growth depends on the success of small and growing businesses. That is why we are focused on providing access to finance, practical advisory support and the connections businesses need to move from ambition to scale,” he stated.
The Oyo State Commissioner for Investment, Trade, Cooperatives, and Industry, Professor Soliu Adelabu, said the initiative was designed to support businesses and strengthen the state’s entrepreneurship ecosystem, praising the bank for its support for traders, entrepreneurs, and artisans in the state.
The Permanent Secretary in the Oyo State Ministry of Women Affairs and Social Inclusion, Mrs O.M. Shotonwa-Roagess, highlighted the importance of strategic partnerships in expanding economic opportunities for women and vulnerable groups across Oyo State. She noted that the ministry remains open to collaborating with organisations such as Stanbic IBTC, development partners and the private sector to drive financial inclusion, entrepreneurship and sustainable economic empowerment.
The Nigeria Business Summit Regional Tour forms part of Stanbic IBTC’s broader commitment to empowering entrepreneurs through capacity building, financial inclusion and strategic business support, helping enterprises unlock new opportunities for growth and long-term success.
The Ibadan leg built on the momentum of previous tour stops in Katsina and Aba.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, says Nigeria anticipates remittances from citizens living abroad to increase by two-thirds in 2026 as it seeks to bolster its foreign-exchange reserves to $1 billion monthly.
“We are expecting that by the end of the year, we will hit about a billion Dollars a month from diaspora remittances,” he said at the 14th Annual BusinessDay CEO Forum in Lagos on Thursday, themed From Stability to Shared Prosperity.
Mr Cardoso said remittances are expected to be boosted from more than $600 million currently, banking on the CBN’s deliberate target at remittances to diversify reserve sources beyond oil earnings.
According to him, the apex bank engaged Nigerians abroad, banks and international partners to identify barriers to official remittance flows.
He said the lender subsequently reviewed policies to ensure easier movement of funds into and out of the country.
Mr Cardoso described the approach as providing free entry and free exit for foreign exchange.
He said the reforms helped double diaspora inflows within one year and exceeded initial expectations, also projecting annual remittances could reach about $8 billion if the current momentum was sustained, adding that the development reflected growing confidence in Nigeria’s financial system and foreign exchange market.
Mr Cardoso said reforms introduced by the apex bank had restored stability in the foreign exchange market and improved investors’ confidence.
He identified exchange rate unification as one of the central bank’s major achievements under the reforms programme.
According to him, replacing multiple exchange rate windows with a market-driven system eliminated distortions and improved transparency.
Mr Cardoso said improved foreign exchange liquidity and stronger reserves were among the gains from the reforms.
He said Nigeria’s net external reserves had risen from about $3 billion at the start of the reforms to above $40 billion currently, noting that gross external reserves had grown to about $52 billion, representing about 10 months of import cover.
According to him, the reserves are designed to shield the economy from external shocks and excessive market volatility.
He said the reserves were not meant for routine interventions or day-to-day exchange rate management.
