Access Bank declares N23b dividend as profit hits N115.4b

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Access Bank declares N23b dividend as profit hits N115.4b
March 11, 2020
 
in Equities

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ACCESS Bank at the weekend declared a total dividend of N23.1 billion as cash payouts to shareholders as the commercial banking group released its audited financial statements showing double-digit growths in incomes and profitability.

The board of the bank recommended distribution of N14.22 billion as final dividend for the 2019 business year in addition to interim dividend of N8.89 billion earlier paid by the bank, bringing total dividend for the year to N23.11 billion.

Shareholders will receive a final dividend of 40 kobo per share in addition to interim dividend of 25 kobo per share, representing a total dividend per share of 65 kobo. The dividend per share of 65 kobo represents an increase of 30 per cent on total dividend of 50 kobo per share paid for the 2018 business year.

Key extracts of the audited report and accounts for the year ended December 31, 2019 showed that the top-line rose by 26.1 per cent while pre-tax profit rose by 11.8 per cent. The top-line performance was driven by a leap of 40.9 per cent in the bank’s core banking interest income. Gross earnings rose to N666.75 billion in 2019 as against N528.74 billion recorded in 2018.  Profit before tax increased from N103.2 billion in 2018 to N115.4 billion in 2019. Profit after tax improved from N94.9 billion to N97.5 billion.

The balance sheet showed a stronger market share as customers’ deposits rose by 65.9 per cent from N2.56 trillion to N4.26 trillion. Total assets jumped from N4.95 trillion in 2018 to N7.15 trillion in 2019. Shareholders’ funds also increased from N482.64 billion to N601.66 billion.

Access BankGroup Managing Director, Mr. Herbert Wigwe has said the bank’s performance was a reflection of its sustainable business model and effective execution.

He said the bank’s focus on retail gained momentum during the year as continued investments in its channels platform resulted in contribution to gross fee and commission income.

According to him, the strong retail contribution demonstrates the effectiveness of the bank’s continued drive around low-cost deposits, on the back of an innovative digital platform.

“Additionally, we will remain disciplined in our efforts to deliver enhanced shareholder value, as we continue to realise the synergies from our newly expanded franchise,” Wigwe said.