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Access Bank declares N16b dividend on N66b profit

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Access Bank declares N16b dividend on N66b profit

Shareholders of Access bank Plc would receive a total of N15.9 billion as cash dividend for the 2015 business year as the commercial bank braced the odds to record impressive growths in top-line earnings and profit.

The board of directors of Access Bank on Thursday announced that it has recommended distribution of a final dividend of N8.68 billion to shareholders, in addition to interim dividend of N7.23 billion earlier paid. This brought total payout for the year to N15.91 billion.

Shareholders would receive a final dividend per share of 30 kobo in addition to interim dividend per share of 25 kobo, representing a total dividend per share of 55 kobo.

The dividend recommendation was part of the highlights of the earnings report of the bank for the year ended December 31, 2015, which showed considerable growths across key indicators.

The audited report and accounts of Access Bank for the year ended December 31, 2015 presented at the Nigerian Stock Exchange (NSE) showed that gross earnings rose by 37.5 per cent from N245.38 billion in 2014 to close at N337.40 billion in 2015. Interest income and non-interest income contributed 62 per cent and 38 per cent respectively to the group top-line.

Operating income rose by 39 per cent to N234.8 billion in 2015 as against N168.4 billion in 2014. Profit before tax grew by 44 per cent from N52.02 billion to N75.04 billion. Profit after tax improved by 53.3 per cent to N65.9 billion in 2015 as against N42.98 billion in 2014. Earnings per share thus improved from N1.85 in 2014 to N2.62 in 2015. Return on average equity (ROAE) improved to 20.4 per cent in 2015 as against 16.5 per cent in 2014.

Further analysis showed that loans and advances grew by a quarter to N1.41 trillion as against N1.12 trillion. Customer deposits closed 2015 at N1.68 trillion, 16 per cent above N1.45 trillion recorded in 2014. Total assets also rose by 23 per cent to N2.59 trillion in 2015 compared with N2.10 trillion in 2014. The bank’s capital adequacy ratio (CAR) improved by 110 basis points to 19.5 per cent in 2015 as against 18.4 per cent in 2014, driven by a successful equity raising during the year.

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Group managing director, Access Bank Plc, Mr. Herbert Wigwe, said the bank made remarkable headway in redesigning its systems and processes to enhance service delivery across all customer touchpoints, with emphasis on tailored customer interactions.

According to him, while leveraging innovation, the bank introduced products and solutions which have enhanced its brand equity and recorded significant customer adoption and migration to its digital platforms.

He said the 2015’s results reinforce the bank’s resolve to generate sustainable returns despite challenging market conditions.

“During the year, we successfully raised capital by way of Rights Issue which has significantly strengthened our capital base and now provides us with sufficient headroom to harness opportunities in key growth sectors of the economy. In addition, the recent upgrade of our national scale credit rating to ‘A’ by Fitch Ratings – even in an extremely difficult environment – will enable growth in the market share of our customers’ businesses and solidify our position as a top player in the industry,” Wigwe said.

 

 

 

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