Access Holdings Plc, Nigeria’s largest bank by total assets, reported a pre-tax profit of N146.1 billion in the second quarter of 2024.
Combined with the first-quarter pre-tax profit of N202.7 billion, Access Holdings’ half-year profit now stands at N348.9 billion, compared to N167.6 billion reported during the same period last year.
In the company’s half-year audited filings published on the website of the NGX, the second-quarter results revealed year-on-year growth across all major income lines.
However, when compared to the previous quarter, there was a general dip in performance during the second quarter.
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Despite reporting a pre-tax profit of N348.9 billion, the corporation also reported a total comprehensive income of N646.34 billion after including an “Unrealised foreign currency translation difference” of N412.8 billion.
A cursory review of its half-year results show interest income of N1.4 trillion, out of which N691.8 billion was from loans and advances to its customers.
Another N86.6 billion came from loans to other banks, while the balance was from investment securities.
Access Holdings, however, incurred a whopping N419.2 billion and N411.2 billion in interest expenses on deposits from other financial institutions and customers, respectively.
In terms of fees and commissions, the bank earned a substantial N250.9 billion in the first half of the year. A significant portion of the fees came from credit-related fees (N91.7 billion), e-business income (N73.8 billion), and account maintenance charges and handling commissions (N29.58 billion).
It incurred N37 billion in expenses related to its e-banking operations.
Significant cost drivers for the bank include its IT and e-business expenses, which increased by 265% to N111.2 billion.
The company’s AMCON surcharge also rose to N111.2 billion, up from N68.8 billion the previous year.
Additionally, the bank’s travel expenses more than doubled, rising from N10.7 billion to N24.5 billion.
In total, its operating expenses rose by 128% to N512 billion, driven primarily by IT and e-business expenses and AMCON surcharges.
Apart from Access Bank South Africa and Kenya, all other foreign subsidiaries reported pre-tax profits.
Access Bank South Africa and Kenya posted pre-tax losses of N7.6 billion and N3 billion, respectively.
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