Reeling from huge non-performing loans, Access Bank’s third quarter result still showed a rise in profitability as profit after tax grew by 34 per cent from N9.6 billion to N12.8 billion in the third quarter ended September 30.
?The figure is 21.5 per cent higher than the numbers posted in the previous quarter. The bank is still owed over N16 billion in non-performing loans by Zenon Oil.
Gross earnings grew by a modest 5.4 per cent from N77.95 billion to N82.17 billion. Operating expenses grew by 9 per cent to N36.8 billion from N33.8 the previous year.
The bank’s loan books accelerated by over 27 per cent, the highest so far in the sector this quarter, to N548.1 billion from N429.8 billion in the comparable period of 2010. The bank was still able to leverage on its strong brand equity, growing deposits by nearly 33 per cent to N646.64 billion from N486.9 billion the previous year.
Cash and bank balance which measures its liquidity dipped marginally by over 3 per cent to N24.6 billion. The banks net assets, which indicate its networth in terms of shareholders’ value however grew marginally by less than one per cent to N176.5 billion.
Access Bank has acquired 75 per cent of Intercontinental Bank as part of the new core investor initiative by the Central Bank of Nigeria (CBN) to rescue the rescued banks. This was after the regulator injected about N100 billion into the troubled bank.
The acquisition which will be concluded in 2012 will create an institution among the top banks in Nigeria by asset size with a strategic branch network of over 500 branches across the country and over 5 million customers.
This is expected to boost the bank’s profitability going forward.