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Access Bank posts Gross Earnings of ₦764.7bn in FY 2020

Access Bank posts Gross Earnings of ₦764.7bn in FY 2020

Despite a challenging economic and regulatory landscape, Access Bank PLC has
announced gross earnings of ₦764.7bn for the financial year ended December 31,
2020.

The Bank’s audited gross earnings shows a 15% improvement from the ₦666.75bn
posted for the comparative period of 2019. While the Bank’s Profit Before Tax stood
at ₦125.9bn, it also posted a non-interest income of ₦275.5bn, a significant 112%
y/y growth from 2019. This is despite the cost of operating its enlarged franchise.
According to Herbert Wigwe, the Group Managing Director and CEO of Access Bank
PLC, the institution’s resilient performance “is testament to the effectiveness of our
strategy and capacity to generate sustainable revenue.”

“The strategic actions that the Bank has taken over the past 12 months evidence a
strong focus on retail banking and financial inclusion, an African expansion strategy
and a drive for scale for sustainable value creation. In 2020, Access Bank proudly
opened its doors for business in Kenya and Mozambique, further increasing our
footprints across the African Continent. Access Bank Zambia also concluded the
acquisition of Cavmont Bank Limited in January 2021 and the Group recently
announced the approval by relevant regulatory authorities for the acquisition of
Grobank Limited, creating an inroad into the South African market in realization of
the Group’s strategic ambitions.

In view of the opportunities that exist in the market, we will be transitioning to a
HoldCo structure. The Bank has received the Approval-In-Principle from the Central
Bank of Nigeria for the restructuring and the HoldCo will consist of 4 subsidiaries in
order to tap into the market opportunities that are available in the consumer lending
market, electronic payments industry and retail insurance market. Going into the
fourth year of our 5-year cyclical strategy, our focus remains on consolidating our
retail momentum and expanding our African footprint in a sustainable manner,”
Wigwe said.

Access Bank PLC recorded a consistent growth in its retail banking business,
reporting a 5.8mn growth in customer sign-on during the year through our financial
inclusion efforts. This increase in customer base led to a retail revenue of ₦177.2bn,
a 64.4% increase from its FY 2019 figures of ₦107.8bn. The Bank’s customer
deposits also grew by 31% to ₦5.59trn in Dec 2020 with savings account deposits
standing at ₦1.31trn. Similarly, net loans and advances grew by 18% to ₦3.61trn in
comparison to its FY 2019 figures of ₦3.06trn.
As the Bank intensified recovery efforts, undertook significant write off and leveraged
its robust risk management practices, its asset quality improved to 4.3% compared to
its 2019 report of 5.8% and this is expected to continue to trend downwards him as it
Asstrives to surpass the standard it had built in the industry prior to the merger with Access Bank.

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About the Author
Philomena  Ngozi Christopher-Oji was born to the family of the late Michael and Cecilia Ojeogwu of Ubulu-Uku, in Aniocha South Local Government Area, Delta State. She had her primary and secondary education in Nwanoli and Ezemu Girls College, in Ubulu-Uku, before she proceeded to the Delta State University, Abraka, where she studied English and Literary Studies.

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