admin……… Donates Over N1bn to Support Flood Relief Efforts in Maiduguri
………. Strengthens Women Empowerment Effort in Southern Africa, Relaunches W Initiative in Zambia, Botswana
Access Holdings Plc, a leading global financial institution, announced its half-year audited financial results for the period ended 30 June 2024.
According to the company, the results underscore the it’s continued resilience, focus on delivering sustainable performance and commitment to creating long-term value for shareholders.
Performance Highlights
Access Holdings Plc demonstrated strong performance across all key balance sheet indicators and continues to maintain a well-structured, healthy, and diversified financial position.
It further added that this is evident in the resilient half year results from the banking franchise operating in twenty-two markets across four continents and the non-banking subsidiaries including Access Pensions, Hydrogen Payments, and Access Insurance Brokers.
“In half year 2024, total assets and shareholders’ equity stood at ?36.5 trillion and ?2.8 trillion, respectively. This represents a year to date of growth of 37.1% and 29.8%, respectively.”
“Customer deposits increased by 31.3%, from ?15.3 trillion in December 2023 to ?20.1 trillion by half year 2024. Gross loans and advances also saw an increase of 37.6%, growing from ?8.9 trillion in December 2023 to ?12.3 trillion by half year 2024, from organic loan growth and the impact of foreign currency-denominated loans,” the bank said.
Access Holdings reported triple-digit growth across all profitability metrics, with gross revenue rising by 133.5% year-on-year, from ?940 billion in half year 2023 to ?2.2 trillion in half year 2024. This increase was supported by higher interest and non-interest earnings in the period.
It added that, interest income surpassed the ?1 trillion mark, from the expansion of risk assets and effective pricing, leading to a 142% growth from ?606.8 billion in half year 2023 to ?1.47 trillion by half year 2024. Non-interest income also grew by 117%, rising from ?333.4 billion in half year 2023 to ?723.6 billion in half year 2024.
Profit before tax increased by 108.2% year-on-year, from ?167.6 billion in half year 2023 to ?348.97 billion in half year 2024, while profit after tax rose by 107.7%, from ?135.4 billion to ?281.3 billion over the same period. This resulted in a 103% growth in earnings per share (EPS), which increased from ?3.74 in half year 2023 to ?7.58 in half year 2024.
Cost-to-income ratio (CIR) remained relatively flat at 60.4% in half year 2024 despite double digit growth in inflation and devaluation in the same period.
Cost to income was moderated as revenue outpaced operating expenses. The increase in operating expenses was primarily from ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1% and 37%, respectively, and will normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses, and the currency conversion impact of subsidiaries’ operating costs.
To maximise value for our shareholders, Access Holdings Plc has declared an interim dividend of 45 kobo per share (half year 2023, 30 Kobo), representing a 50% increase in dividend payout.
Banking Group Performance
Despite the challenging operating environment and tight monetary policy stance, Access Banking Group recorded strong year-on-year growth across all performance metrics, with Interest and non-interest income contributed significantly to gross earnings. Net interest income grew by 131% from N232.2 billion in half year 2023 to N536.7 billion in half year 2024. Fees and commissions increased by 94% year on year from N119.8 billion to N232.5 billion from higher transaction volumes on our digital channels, credit related fees and card payments.
The Banking Group subsidiaries contributed 55% to the Group’s Profit Before Tax (PBT), demonstrating the significant impact of their operations and growing importance in driving overall profitability. Year-on-year, their PBT performance grew by 218% from N63.3 billion to N201.7 billion.
As part of our ongoing strategic expansion beyond Nigeria, we have successfully completed the full integration of the merged entities in Zambia and Tanzania operations. These developments not only enhance our presence in key markets but also create significant value by expanding our customer base, strengthening cross-border banking capabilities, and fostering increased operational efficiency across our subsidiaries.
Regulatory Ratios
Through our proactive risk management approach, the non-performing loan (NPL) ratio closed at 2.72% in half year 2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR) remained strong at 19.8%. Our loan-to-funding and liquidity ratios also improved to 63.9% and 57.2%, respectively. All prudential ratios exceeded regulatory requirements, underscoring our ability to maintain a robust and liquid balance sheet.
Non-Banking Subsidiaries
The operating performance of our non-banking subsidiaries demonstrates a consistent growth trajectory. Access Pensions has achieved a remarkable 162.1% increase in Assets Under Management (AUM), rising from ?1.1 trillion in December 2023 to ?2.9 trillion in the first half of 2024. This growth is driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions. As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts. Furthermore, the operating income for the pension business saw a substantial increase of 190%, climbing from ?5.6 billion in H1 2023 to ?16.2 billion in H1 2024.
Hydrogen Payments achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company. The total payment volume (TPV) processed surged by 306%, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023. Notably, 90% of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria. The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted significant growth with an 83% increase in gross premiums written and a 60% rise in commission income in the first year of operations. Specifically, gross written premiums surged from N2.3 billion to N5.9 billion by half year 2024.
Regulatory Ratios
Through our proactive risk management approach, the non-performing loan (NPL) ratio closed at 2.72% in half year 2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR) remained strong at 19.8%. Our loan-to-funding and liquidity ratios also improved to 63.9% and 57.2%, respectively. All prudential ratios exceeded regulatory requirements, underscoring our ability to maintain a robust and liquid balance sheet.
Non-Banking Subsidiaries
The operating performance of our non-banking subsidiaries demonstrates a consistent growth trajectory. Access Pensions has achieved a remarkable 162.1% increase in Assets Under Management (AUM), rising from ?1.1 trillion in December 2023 to ?2.9 trillion in the first half of 2024.
This growth is driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions. As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts.
Furthermore, the operating income for the pension business saw a substantial increase of 190%, climbing from ?5.6 billion in H1 2023 to ?16.2 billion in H1 2024.
Hydrogen Payments achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company. The total payment volume (TPV) processed surged by 306%, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023.
Notably, 90% of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria. The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted significant growth with an 83% increase in gross premiums written and a 60% rise in commission income in the first year of operations. Specifically, gross written premiums surged from N2.3 billion to N5.9 billion by half year 2024.
Our agile execution strategy and customer-centric approach position us as a market leader in Nigeria, while simultaneously enabling us to consolidate market share in existing locations beyond Nigeria and explore opportunities in new geographies under consideration for expansion.
Outlook for the Rest of the Year
Access Holdings remains confident in its ability to surpass the growth momentum achieved in the first half of the year as we look ahead to the second half. Our strategic priorities will remain focused on scaling non-banking segments, expanding our digital footprint, and solidifying our presence in high-growth African and international markets. These are geared towards accelerating revenue diversification and ensuring long-term sustainable value creation for our shareholders.
Furthermore, we are fast-tracking the completion of our technology infrastructure integration and upgrades, which will significantly enhance operational efficiency across the group. This technology transformation will strengthen our digital capabilities, allowing us to deliver superior services to our customers, drive operational synergies, and optimise cost.
Our strategic focus on non-banking segments, digital expansion, and geographic diversification will continue to create lasting value for shareholders, positioning the group to capitalise on emerging opportunities and sustain growth in the long term.
We recently concluded our rights issue of N351 billion, and we are awaiting the Central Bank of Nigeria (CBN) capital verification and the Securities and Exchange Commission (SEC) approval for the allotment of rights. We will keep our investors and shareholders informed as we proceed with the exercise.
Meanwhile, in a demonstration of its commitment to community support, the bank has announced a donation of over N1 billion to assist with relief and recovery efforts in Maiduguri, through its banking vertical – Access Bank Plc. The announcement was made during a visit of the Group’s delegates, led by Bolaji Agbede, Acting Group Chief Executive Officer, to the Borno State Government House in Maiduguri.
The donation, which comes in response to the devastating floods that have severely impacted the region, is aimed at providing both immediate and long-term respite. Access Holdings’ contribution will be allocated as ?500 million in cash to support the state government’s on-the-ground response efforts, ?500 million for the restoration of critical infrastructure damaged by the flood, as well as essential food supplies to ensure the most vulnerable receive care.
Speaking at the meeting, Bolaji Agbede, Acting Group Chief Executive Officer of Access Holdings Plc, reaffirmed the Group’s commitment to supporting the people of Borno, restating a pledge to impact lives of communities where the institution operates.
“At Access Holdings, we believe in positively impacting the communities we serve, not only as a financial institution, but as a family that cares deeply for its people. We recognise the resilience of the people of Borno, and we are committed to providing the support necessary to overcome this difficult time. This donation is not merely about the funding; it is about offering immediate succour to families and individuals, who have been affected, while also contributing to local economic resurgence and long-term resilience through the restoration of essential infrastructure,” said Agbede.
Governor Babagana Zulum, who graciously received the Access Holdings delegation, expressed appreciation for the donation and the company’s swift response to the crisis.
“We are moved by the generosity and commitment shown by Access Holdings and Access Bank during this critical time. This donation of ?1 billion is appreciated during this challenging time and will be judiciously utilised to impact the lives of all those who have been affected by the incident. The restoration of our hospitals and essential services will strengthen our resilience, while the food relief will provide immediate comfort to families and individuals in distress. Truly, this support speaks to the importance of cooperation between the government, and the private sector in improving the lives of our local communities,” said Zulum.
The donation sees Access Holdings become the first mainstream financial institution to offer support to Borno in the wake of the disaster that affected over one million people- leaving entire residential areas submerged and tens of thousands of people displaced. The company remains committed to working closely with the Borno State Government, aid organisations, and other stakeholders to ensure relief reaches those most in need and the state is well-positioned for recovery.
In a related development the bank has, also, reinforced its dedication to advancing women’s empowerment across Southern Africa with the relaunch of its ‘W’ Initiative in Zambia and Botswana. The ‘W’ Initiative, which provides a wide array of financial services and support programs specifically designed for women, is a key component of Access Bank’s broader strategy to drive financial inclusion and foster socio-economic growth in the region.
The revamped ‘W’ Initiative aims to provide financial services for women by offering customised solutions such as savings and investment products, business loans, and mentorship programs. In addition to these services, the initiative also promotes financial literacy and provides opportunities for professional growth. During the event in Zambia, Chizoma Okoli, Deputy Managing Director of Access Bank Plc, highlighted the importance of initiatives like these for empowering women.
“Empowering women is a cornerstone of Access Bank’s mission to drive economic growth across Africa. Through the ‘W’ Initiative, we aim to provide tailored financial solutions while also fostering environments that encourage women to thrive in all areas of life – whether as business owners, professionals, or leaders in their communities,” she said.
Okoli held discussions with key stakeholders, including Vice President of Zambia, Mrs. W.K. Mutala Nalumango, to explore strategies for creating an enabling environment for Zambian women. Access Bank Zambia also pledged a donation of K500,000 towards nutritional programs in the Vice President’s office, further demonstrating the Bank’s commitment to community welfare.
Nalumango highlighted the vital role women play in the nation’s economic development. “It is crucial for women to recognise the value they bring to the table and to be vocal about their accomplishments,” she stated. She also emphasised the importance of self-promotion and self-advocacy, particularly for women and girls, while commending Access Bank’s efforts to support women through initiatives like the ‘W’ Initiative.
Meanwhile, in Botswana, Access Bank’s relaunched ‘W’ Initiative set a new benchmark for women’s financial empowerment in the country. Sheperd Aisam, Managing Director of Access Bank Botswana, described the Initiative as a “transformative platform” offering tailored financial products and services that cater to the unique needs of women. The initiative in Botswana will introduce solutions such as vacation, health, and educational loans, as well as high-interest savings accounts designed for long-term wealth building.
“We are proud to launch the ‘W’ Initiative in Botswana, which is designed not only to provide financial products but also to equip women with the tools, resources, and networks they need to achieve personal and professional success,” said Aisam. “Access Bank is committed to inspiring and empowering women across all sectors of society.”
Over the past 17 years, Access Bank has consistently demonstrated its commitment to gender equality and women’s economic empowerment, expending over N338.6 billion in financing for over 3.6 million women. The ‘W’ Health Loan, the new umbrella product for all health loans available under the W Initiative comes in 3 variants. One of these variants is the Maternal Health Service Support (MHSS) – a flagship product designed to provide discounted financing for fertility procedures, natal support and specialized procedures peculiar to women.
The MHSS, which is currently present in Nigeria, Ghana, Rwanda, Mozambique and Zambia, is positioned to help women and families overcome barriers to good health and wellbeing. Often referred to as the ‘baby making product’, the MHSS is a premier product in Africa which has impacted over 160 women and families with access to finance on various health procedures worth N245.5 million as well as birthed 104 babies through the discounted health financing scheme. The 2 additional health loan variants cover medical emergencies and cancer treatments.
Running in 12 countries across Africa, the ‘W’ Initiative stands as a testament to Access Bank’s broader commitment to women’s empowerment across Africa, ensuring that more women can access financial opportunities that propel them towards success.
