Access Bank profit before tax shoot up by 40% in 2021
Access Bank Plc recorded impressive growths in incomes and profitability in 2021 with pre-tax profit rising by 40 per cent to N176.7 billion.
With 51 per cent growth in net profit after tax to N160.2 billion, the board of directors of the bank has recommended distribution of N35.6 billion to shareholders as cash dividends for the 2021 business year. Shareholders will receive a final dividend of 70 kobo per share, in addition to interim dividend of 30 kobo per share paid earlier in the year, bringing total dividend per share for 2021 to N1.
Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2021 showed that gross earnings rose by 27 per cent from N764.7 billion in 2020 to N971.9 billion in 2021. A breakdown indicated that the core business interest incomes accounted for 62 per cent while non-interest income contributed 38 per cent. Profit before tax grew by 40 per cent N176.7 billion in 2021 as against N125.9 billion in 2002. After taxes, net profit leapt by 51 per cent from N106 billion to N160.2 billion.
The balance sheet also improved considerably with total assets rising by 35 per cent from N8.7 trillion in 2020 to N11.7 trillion in 2021. Customer deposits also rose from N5.6 trillion to N7 trillion. Net loans and advances increased from N3.6 trillion to N4.4 trillion. The credit risk management of the bank remained increasingly efficient with the ratio of non-performing loans to gross loans and advances dropping from 4.3 per cent in 2020 to 4.0 per cent in 2021.
Further analysis showed Return on Average Equity (ROAE) of 17.8 per cent. The bank also sustained robust capital and liquidity positions, well above regulatory levels with a Basel II Capital Adequacy Ratio of 24.5 per cent and a Liquidity Ratio of 51.0 per cent.
Chief Executive Officer, Access Bank Plc, Mr. Herbert Wigwe said the last year’s results underscored the fact that the bank’s diversified business model has continued to yield positive sustainable results.
According to him, guided by a robust risk management framework, the bank continued to grow its business cautiously while recording sound prudential ratios.