Access Holdings blows past N30 trillion in total assets in first quarter of 2024

Access Holdings has maintained its position as Nigeria’s largest banking group, with assets reaching N32.6 trillion as of March 31, 2024.

This represents a whopping 22% increase from N26.7 trillion recorded as of December 31, 2023.  

This information is contained in the company’s unaudited financial results for the first quarter of 2024 released on the NGX.

During the quarter, the group recorded a 148% year-on-year growth in its pre-tax profit to N202.7 billion from N81.7 billion as of Q1 2023.

The growth in pre-tax profit was linked to the 189% YoY growth in its net interest income to N275.7 billion from N95.3 billion as of Q1 2023.  

Key Highlights Q1 2024 vs Q1 2023 

Net interest income: N275.7 billion, +189% YoY  Net impairment charges on financial assets: N22.8 billion, +22% YoY  Net interest income after impairment charges: N252.9 billion, +230% YoY  Net fee and commission income: N86.8 billion, +91% YoY  Net foreign exchange gain: N215 billion, +91% YoY  Cash and cash balances with banks: N3.35 trillion, +10% YoY  Profit before tax: N202.7 billion, +148% YoY  Profit for the period: N159.3 billion, +122% YoY  Earnings per share: N4.35, +111% YoY  Total deposits: N24.7 trillion,+25%Loans and advances: N10.9 trillion, +22%

Total assets still lower when dollarized

Access Bank is Nigeria’s largest bank by total assets but has seen a rapid growth in total assets in the last 5 years since the merger with Diamond Bank.

Just a year ago, the bank’s total assets was N15.7 trillion, compared to N32.6 trillion at the end of March 2024 the largest on record. However, the growth in size could be connected to currency depreciation which revalued the dollar position of the bank.For example, in dollar terms, Access Bank will be valued at $32 billion as of March 2023 (assuming exchange rate of N480/$1).However, at N32.6 trillion and using the prevailing exchange rate of N1309.39/$1, the current dollar value is $24.9 billion significantly lower than a year ago.

Key drivers of the results

Access Bank’s performance in the recent quarter was significantly driven by a sharp increase in net interest income, which surged from N95.2 billion to N275.7 billion.

This rise was primarily attributed to the income derived from loans extended to its customers.Additionally, the bank experienced a substantial growth in its net fees and commissions income, which doubled year-on-year to N86.8 billion.This increase was fueled by credit-related fees and income from electronic banking.The depreciation of the exchange rate also contributed to Access Bank’s robust financial results, with the bank reporting N146.6 billion in forex revaluation gains.

In terms of investments, the group’s securities portfolio expanded by 60% over the quarter, reaching N8.5 trillion up from N5.3 trillion as of December 31, 2023.

Similarly, the total treasury bills portfolio grew by 61% to N4.3 trillion, up from N2.7 trillion at the beginning of the quarter.Treasury bills constituted more than half of the group’s total investment securities, highlighting the bank’s preference for short-term debt instruments.Furthermore, the group’s retained earnings rose to N884.9 billion, up from N715.1 billion at the start of the year.

A notable net foreign exchange gain of N215 billion during the quarter also led to an increase in the group’s foreign currency translation reserve, which grew to N739 billion.