Access Holdings’ foreign exchange gain has surged 71 percent to hit a seven-year high in the first nine months of 2023, a development driven by naira devaluation.
Naira devaluation which has been a nightmare for industries has been a jackpot for banks as their foreign exchange gains soar.
Access Holdings recorded a foreign exchange gain of N314.6 billion in 9M’2023 from converting loans and financial instruments denominated in foreign currencies into naira, as against N184.13 billion in the same period of 2022.
The holding company’s profit after tax grew 83 percent to N250.44 billion in 9M’2023 from N136.91 billion in the same period of 2022.
Profit before tax amounted to N294.42 billion in 9M’2023 from N147.06 billion in the same period of 2022.
Access Holdings income tax increased to N43.97 billion in 9M’2023 from N10.29 billion in the same period of 2022.
Read also: Access Holdings grows H1 PBT by 71.4% as earnings soar to N940.3bn
Total revenue amounted to N1.59 trillion in 9M’2023 from N906.93 billion in the same period of 2022.
Net interest income grew to N389.96 billion in 9M’ 2023 from N280.29 billion in the similar period of 2022.
The holding company’s interest income rose to N1.05 trillion from N571.74 billion.
“This interest income growth was driven by the elevated interest environment and probable 25.4 percent year-on-year rise in interest-earning assets that masked the 2.3x jump in interest expense to N658.5 billion,” analysts at CardinalStone said in a note.
Interest expense increased to N658.51 billion in 9M’2023 from N291.45 billion in the same period of 2022.
Fee and commission income grew to N208.18 billion from N133.49 billion while fee and commission expense to N59.63 billion from N38.31 billion.
Net fee and commission income surged to N148.55 billion in 9M’2023 from N95.18 billion in the same period of 2022.
The holding company’s other operating income rose to N22.11 billion in 9M’2023 from N17.22 billion in the same period of 2022.
Read also: Why half-year financial statement is delayed – Access Holdings
Access Holdings account maintenance charge and handling commission surged to N21.85 billion in 9M’2023 from N18.71 billion in the same period of 2022.
Channels and other e-business income grew to N70.35 billion in 9M’2023 from N49.4 billion in the same period of 2022.
Personnel expenses surged to N117.63 billion in 9M’2023 from N89.84 billion in the same period of 2022.
The holding company’s net impairment charge on financial assets stood at N61.83 billion from N52.95 billion during the period.
Depreciation increased to N30.54 billion from N22.47 billion while amortisation and impairment grew to N12.63 billion from N10.28 billion.
Interest income on loans and advances to banks surged to N37.48 billion in 9M’2023 from N12.38 billion in the same period of 2022.
Similarly, interest income on loans and advances to customers increased to N458.41 billion from N352.01 billion.
Read also: Access Holdings’ interest income jumps by 56% to N250bn
“Despite a 13.2 percent increase in loan loss provisioning, cost-of-risk was 10 basis points lower at 1.1 percent compared to 1.2 percent in 9M’22, highlighting the more robust 34.7 percent expansion in gross loans,” analysts at CardinalStone said.
Net cash generated from operating activities rose to N1.41 trillion in 9M’2023 from N249.02 billion in the same period of 2022.
Net cash generated from investing activities stood at a negative N688.97 billion in 9M’2023 from N38.58 billion negative cash flow in the reviewed period.
Net cash generated from financing activities stood at a negative of N396.18 billion in 9m’2023 from a positive of N429 million in the same period of 2022.
Cash and cash equivalents at the end of the period increased to N2.37 trillion in 9M’2023 from N1.76 trillion in the same period of 2022.
Earnings per share stood at N692 per share in 9M’2023 from N387 per share in the same period of 2022.
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