In a remarkable financial development, Access Holdings has witnessed a substantial 71 percent increase in its foreign exchange gain, reaching a seven-year high within the first nine months of 2023. This impressive surge has been primarily attributed to the devaluation of the Nigerian naira, which, while challenging for many industries, has proven to be a significant financial boon for banks.
Access Holdings reported a foreign exchange gain of N314.6 billion in the first three quarters of 2023, resulting from the conversion of loans and financial instruments denominated in foreign currencies into naira. This figure marks a substantial leap from the N184.13 billion recorded during the same period in 2022.
The financial success didn’t stop there for Access Holdings. The company’s profit after tax saw an astounding 83 percent growth, reaching N250.44 billion in 9M 2023, compared to N136.91 billion during the same period in 2022. Similarly, profit before tax surged from N147.06 billion in 9M 2022 to N294.42 billion in 9M 2023.
However, Access Holdings also saw a notable increase in its income tax, which amounted to N43.97 billion in 9M 2023 compared to N10.29 billion in the same period in 2022.
The company’s total revenue reached N1.59 trillion in 9M 2023, up from N906.93 billion in 9M 2022. Net interest income experienced growth, rising to N389.96 billion in 9M 2023 from N280.29 billion in the corresponding period of 2022.
This surge in interest income was attributed to an elevated interest rate environment and a substantial 25.4 percent year-on-year increase in interest-earning assets. These factors overshadowed a 2.3x surge in interest expenses to N658.5 billion, as noted by analysts at CardinalStone.
Fee and commission income for Access Holdings grew to N208.18 billion from N133.49 billion, while fee and commission expenses increased to N59.63 billion from N38.31 billion. Consequently, net fee and commission income surged to N148.55 billion in 9M 2023 from N95.18 billion in the same period in 2022.
Access Holdings also reported a rise in other operating income, which increased to N22.11 billion in 9M 2023 from N17.22 billion in 9M 2022.
Furthermore, expenses saw a notable uptick, with account maintenance charges and handling commissions surging to N21.85 billion in 9M 2023 from N18.71 billion in the same period in 2022. Personnel expenses amounted to N117.63 billion in 9M 2023, up from N89.84 billion in 9M 2022.
The company’s net impairment charge on financial assets was N61.83 billion, compared to N52.95 billion during the same period.
Access Holdings reported an increase in depreciation, growing to N30.54 billion from N22.47 billion, while amortization and impairment amounted to N12.63 billion, up from N10.28 billion.
Interest income on loans and advances to banks increased to N37.48 billion in 9M 2023 from N12.38 billion in 9M 2022, and interest income on loans and advances to customers grew to N458.41 billion from N352.01 billion.
Despite a 13.2 percent increase in loan loss provisioning, the cost-of-risk was 10 basis points lower at 1.1 percent, compared to 1.2 percent in 9M 2022, demonstrating the robust 34.7 percent expansion in gross loans, as noted by analysts at CardinalStone.
In terms of cash flow, Access Holdings reported a net cash generation of N1.41 trillion in operating activities in 9M 2023, compared to N249.02 billion in the same period in 2022. Net cash generated from investing activities was negative N688.97 billion in 9M 2023, while net cash generated from financing activities stood at a negative of N396.18 billion.
Access Holdings ended the period with cash and cash equivalents of N2.37 trillion in 9M 2023, up from N1.76 trillion in the same period in 2022. Earnings per share for the company stood at N692 per share in 9M 2023, compared to N387 per share in 9M 2022.
