Access Bank plc is a full-service commercial bank operating through a network of over 310 branches and service outlets located in major cities across Nigeria, sub-Saharan Africa and the United Kingdom.
Listed on the Nigerian Stock Exchange in 1998, the bank serves its various markets through five business segments: Institutional, Commercial, Retail Banking, Transaction Services.
The bank has over 800,000 shareholders including several Nigerian and international institutional investors and has enjoyed what is arguably Africa’s most successful banking growth trajectory in the last 10 years, ranking among Africa’s top 20 banks by total assets and capital in 2012.
As part of its continued growth strategy, bank is focused on mainstreaming sustainable business practices into its operations. The bank strives to deliver sustainable economic growth that is profitable, environmentally responsible and socially relevant.
The bank has 22.88 billion shares outstanding and with shareholders fund of 244.48 billion as of December 2013.
Financial results for 2013
In what could be described as a peculiar trend for banks based on their full year (FY) 2013 financial results released so far, Access Bank had its profits hit by huge operating expenses.
Analysis shows that Access total operating expenses alone makes up 44 percent of gross earnings in the period under review. For the year ended December 2013, it gross earnings grew by 0.1 percent year-on- year y/y to N206.86 billion from N206.98 billion same period of the prior year.
The bottom-line performance however fell as profit before tax (PBT) in the review period shrank by 8 percent y/y to N36.29 billion compared with N39.32 billion as of FY12.
Profit after tax (PAT) was also hurt by cost pressures as it declined by 8 percent to N36.29 billion in FY13 compared with N39.32 billion as of FY12. Earnings per share (EPS) fell by 8 percent to 159k in FY13 from 172k in FY12.
Total operating expenses for the year ended December 2013 spiked by 24.71 percent y/y to N92.46 billion from N74.14 billion in 2012. Net margin, a measure of profitability and efficiency also fell to 17.55 percent in FY13 from 19.04 percent as of 2012.
It would be recalled that the regulatory policies of the CBN through its tightening stance has been hindering the growth prospects of financial institutions in Nigeria. Interest income for the period fell by 12 percent to N145.96 billion as against N165.29 billion in the earlier period.
The bank had Return on Average Equity and Return on Average Assets of 14.94 percent and 2.02 percent in FY13, respectively. Loans and deposits to customers for the year ended December 2013, surged by 33 percent to N810.75 billion from N608.63 billion as of 2012FY.
Deposits to customers were up by 11 percent y/y to N1.33 trillion in FY13, as against N1.20 trillion as of FY12. Loans to deposits ratio which measures how aggressive a bank is to lending to customers moved to 60.89 percent in FY13, compared with 50.65 percent as of FY12.
Access Bank’s total assets for the year ended December 2013, increased by 5 percent y/y to N1.83 trillion as against N1.74 trillion as of 2012FY. Access Bank has a market capitalisation of N187.41 billion, and price-to-book ratio and price-to-sales ratio are 0.77x and 0.89x, respectively.
