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 Modupe Gbadeyanka
Customers of AXA Mansard in the Micro Small and Medium Scale Enterprise (MSME) sector of the economy will enjoy free exhibition stands at the Made by Nigerians Fair.
The fair is scheduled to take place on Saturday, December 7 and Sunday, December 8, 2024, at the Landmark Event Centre, Lagos.
To support small business owners, AXA Mansard is paying for stands for selected entrepreneurs to showcase their products at the fair, which attracts thousands of people.
According to the Head of Marketing at AXA Mansard Insurance Plc, Mr Olusesan Ogunyooye, this is another gesture by the company to show that MSMEs can benefit from having insurance.
He described MSMEs as the backbone of any economy, noting that they drive innovation, create jobs, and contribute significantly to national development.
“Our support for these businesses at the MBN Fair reflects the commitment to their growth and sustainability. We are passionate about helping them reach their full potential by connecting them with resources and opportunities that foster success.
“By the very nature of insurance, its benefits are in the future and they are uncertain. That has been a main source of discouragement, particularly to MSMEs. Businesses are geared to making money.
“So, when thinking about insurance, an average MSME would rather invest the money in the growth of his business first.
“The risks that businesses face are also real. There are various types of risks businesses have to contend with today; from burglary to fire, the health of employees, and so on.
“When these risks manifest, they can significantly impact a business negatively. We understand that to get MSMEs to protect themselves and the millions of jobs they create, we must help them strike a balance between growing their businesses and protecting them.
“So, we have come up with different Initiatives to help them grow their businesses. The opportunity to exhibit their products and services to thousands of visitors to the MBN Fair is another in the series of our initiatives.
“We are convinced that for insurance to grow, we need to help people and businesses see it as a strategic lever to grow their businesses, not a cost that takes away from them. If we get this right, it can’t have a massive impact on our economy because, when MSMEs thrive, the economy will prosper.
“We have experimented with this model, and we are particularly excited about the responses from our customers. It is a call for us to do more, and we are committed to Nigerian MSMEs,” Mr Ogunyooye stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.05 per cent gain on Friday, December 6 after the price of Afriland Properties Plc went up by 60 Kobo to settle for the day at N16.60 per share versus Thursday’s closing price of N16.00 per share.
Consequently, the market capitalisation of the bourse increased during the session by N520 billion to settle at N1.056 trillion, the same value it ended a day earlier, as the NASD Unlisted Security Index (NSI) went up by 1.5 points to wrap the session at 3,014.91 points compared with 3,013.41 points recorded in the previous session.
Business Post reports that yesterday, the price of Acorn Petroleum Plc depreciated at the close of business by 15 Kobo to trade at N1.54 per unit compared with the preceding day’s N1.69 per unit.
The volume of securities traded in the session by investors soared by 168.3 per cent on Friday to 199,577 units from 74,381 units, but the value of securities went down by 45.8 per cent to N1.4 million from the N2.7 million recorded a day earlier, and the number of deals grew by 20 per cent to six deals from the five deals executed in the preceding session.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rebounded by 0.10 per cent on Friday as almost all the key sectors closed in green when trading activities ended for the week.
The banking index appreciated by 0.73 per cent, the insurance sector gained 0.55 per cent, the energy counter improved by 0.17 per cent, and the industrial goods space jumped by 0.04 per cent, while the consumer goods sector depreciated by 0.16 per cent.
At the close of business, the All-Share Index (ASI) moved up by 96.64 points to 98,210.75 points from 98,114.11 points and the market capitalisation gained N58 billion to quote at N59.534 trillion compared with Thursday’s closing value of N59.476 trillion.
The bourse finished with 27 price advancers and 21 price decliners, representing a positive market breadth index and bullish sentiment.
Golden Guinea Breweries jumped by 9.98 per cent to N5.40, Japaul improved by 9.30 per cent to N2.35, Sunu Assurances expanded by 9.07 per cent to N5.05, Sovereign Trust Insurance rose by 7.69 per cent to 84 Kobo, and Secure Electronic Technology grew by 7.69 per cent to 70 Kobo.
On the flip side, Eterna lost 4.62 per cent to N22.70, Sterling Holdings depreciated by 4.12 per cent to N4.65, Prestige Assurance fell by 3.85 per cent to 75 Kobo, Consolidated Hallmark shrank by 3.85 per cent to N2.50, and Champion Breweries slumped by 3.50 per cent to N3.86.
Yesterday, investors bought and sold 1.0 billion equities worth N17.5 billion in 7,220 deals, in contrast to the 723.0 million equities valued at N12.8 billion transacted in 8,495 deals a day earlier, indicating a decline in the number of deals by 15.01 per cent and a surge in the trading volume and value by 43.98 per cent and 36.72 per cent, respectively.
On top of the activity chart on Friday was Wema Bank with the sale of 472.5 million stocks valued at N4.1 billion, Fidelity Bank traded 251.5 million shares worth N4.0 billion, FCMB transacted 45.0 million equities for N404.9 million, UBA sold 42.3 million shares valued at N1.4 billion, and Japaul traded 20.7 million stocks worth N46.3 million.
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