Business

Access Bank to pay N18.8bn dividend as profit declines

Access Bank to pay N18.8bn dividend as profit declines

Access Bank recorded mixed performance in 2017 as a 29 per cent growth in the top-line compressed into 11 per cent decline in the bottom-line.

The board of the bank has voted to retain the dividend payout at the same level for the previous year.

Audited report of the bank for the year ended December 31, 2017 released at the Nigerian Stock Exchange (NSE) showed that gross earnings grew by 20 per cent to N459.08 billion in 2017 as against N381.32 billion recorded in 2016.

However, profit before tax dropped by 11 per cent from N90.34 billion in 2016 to N80.07 billion in 2017. Profit after tax declined from N71.44 billion in 2016 to N61.99 billion in 2017. Earnings per share thus dropped from N2.50 in 2016 to N2.18 in 2017.

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Directors of the bank said they have recommended payment of N18.8 billion as cash dividend to shareholders for the 2017 business year. Shareholders will receive a final dividend of 40 kobo, in addition to interim dividend of 25 kobo, bringing the total dividend per share for 2017 to 65 kobo, the same amount paid for the 2016 business year.

Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the bank’s operating performance in 2017 was impacted by the residual effects of macro-economic conditions of 2016.

He noted that despite the macro and regulatory headwinds, the bank’s underlying business remained strong as reflected in the gross earnings growth and its loan book.

Access Bank’s capital and liquidity levels of 22.5 per cent and 47.3 per cent respectfully remained robust, well above the required regulatory minimum, providing a strong buffer against the macro challenges and room to expand its business.

 

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