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Access Holdings To Pay N1.80 As Final Dividend To Shareholders After Reporting A PAT Of N612.4 Billion




The Oasis Reporters


March 28, 2024



 

 

 

 

 

 

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Bolaji Agbede, Group CEO, Access Holdings.

 

 


Access Holdings has revealed plans to pay a final dividend of N1.80 for every ordinary share of 50k to its shareholders for the 2023 financial year.

 





The payment, slated for April 19, will be made electronically and is subject to appropriate withholding tax.



This is coming on the heels of Access Holdings Plc, easily Nigeria’s largest finance holding company that has mergers and acquisitions as a unique selling point, has reported a profit after tax of N612.4 billion, marking a 300% increase from the previous year.
This represents the largest profit ever recorded by the company, under the leadership of the late Herbert Wigwe.



According to the financial statements, Access Holdings (also known as Access Corporation) reported Gross Earnings of N2.6 trillion, an 80% increase from the N1.4 trillion reported the year prior.


A significant portion of this revenue was attributed to fair value and foreign exchange gains of about N628.9 billion, compared to N335.5 billion reported a year earlier.


Mr Sunday Ekwochi, the Company Secretary of Access Holdings, disclosed this in a notification to the Nigerian Exchange Ltd. (NGX) on Wednesday in Lagos.



Ekwochi said shareholders who had completed the e-dividend registration and mandated the Registrars to pay their dividends directly into their bank accounts would be paid.



This proposed final dividend brings the total dividend for the 2023 financial year to N2.10 per share.




The bank has also released its full-year results for the period ending Dec. 31, 2023, showcasing an impressive 335 per cent increase in pre-tax profit to N729 billion from N167.68 billion in 2022.



The company also experienced an 87 per cent surge in gross earnings to N2.59 trillion from N1.39 trillion in 2022.
Access Holdings reported a remarkable 306 per cent growth in profit after tax to N619.32 billion, up from N152.20 billion in 2022.


Key highlights (2023 vs 2022 FY)
*Gross Earnings N2.6 trillion vs N1.4 trillion, YoY 80%


**Net Interest Income N555.8 billion vs N145.7 billion, YoY 282.7%


***Operating Expenses N697.5 billion vs N502 billion, YoY 38.9%


****Profit after tax N612.4 billion vs N153 billion, YoY 300%


•Earnings Per share N1.723 vs N0.444, YoY 300%


••Dividends N1.8/share (bringing total to N2.10)


•••Dividend yield based on current price 7.8%(adjusted 9.1%)


Access Corp share price closed at N23.1 (down 2%) on Wednesday March 26th, 2024. The share price is down 0.22% YTD and has a year high of N30 per share.



Insights: The substantial growth in pre-tax profit can be attributed to the significant growth in gross earnings, driven by growth in interest income and non-interest income.


The group attributes the growth in interest income to a higher yield environment supported by a 62% YoY expansion in earning assets.



However, the bank’s interest expense continued to be elevated due to interest paid on deposits, probably due to the surge in interest rates.




It is worth mentioning that, in contrast to some banks where foreign exchange gains significantly bolstered gross earnings, Access Holdings saw a relatively modest foreign exchange gain of N17.254 billion in 2023, even marking a decrease of 49.9% compared to the figure for 2022.




Sitting atop Access Holdings as Group CEO is Bolaji Agbede who has joined the ranks of emerging Women Chief Executive Officers in the Nigerian financial sector, hitherto dominated by the masculine gender.

 

Further reading:

https://www.theoasisreporters.com/filling-the-vacuum-in-a-robust-succession-plan-bolaji-agbede-steps-in-as-access-holdings-group-ceo/




This period has come at a time when the Corporation is acquiring the biggest Kenyan bank that is desperate to clean up it’s bad debts portfolio and stay afloat.
KCB Group Plc.’s efforts to clean up its loan book of legacy bad debt is being frustrated by government delays in paying suppliers and court injunctions slowing down the sale of collateral to recoup losses.



Credits:
Nairametrics
Vanguard
Bloomberg
In-house reporting.































Greg Abolo

Blogger at The Oasis Reporters.

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