Access Holdings Plc’s first quarter interest income grew up by 56.6 per cent as the lender continues to utilise shareholders’ resources in generating higher profit given successive increases in interest rates by the country’s apex bank.
According to findings by BusinessDay, Interest income calculated using effective interest rate increased to N250.98 billion in March 2023 as against N160.317 billion as of March 2022, driven by a 62.63 per cent rise in loans and advances to customers, which was N149.1 billion in the period under review.
Investment securities also contributed to the increase in interest income as it rose by 37.6 per cent to N87.1 per cent in March 2023 as against N63.3 billion recorded in the same period of the previous year.
“The Group experienced an increase in interest income on investment securities as a result of an increase in the volume and improved yield on securities during the period; the increase in interest income on loans is attributable to the increase in value of loans and advances to customers,” the group said in its financial statement.
Access Holding Plc’s interest expense also rose by 84 per cent to N158.9 billion as of March 2023, from N86.3 billion recorded in the same quarter last year.
According to the group, interest expenses were high due to an increase in customer deposits during the period.
“The Group’s Interest expense experienced growth due to increased growth in customer deposits during the period,” the group said.
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According to the breakdown of interest expense, deposits from customers spiked by 82.34 per cent to N98.1 billion in the period under review from N53.8 billion recorded in the same quarter of the previous year, as interest-bearing borrowings and other borrowed funds also increased by 27 per cent in March 2023.
Fees and commission income grew by 8.8 per cent to N61.3 billion in the period under review from N56.3 billion recorded in the previous year.
Profit before tax accounted for N81.6 billion in the period under review from N65.6 billion recorded in the same quarter of the previous year.
Profit for the period recorded a 24 per cent increase to N71.7 billion from N57.8 billion recorded in the same quarter of last year.
Cash and cash equivalents at end of the period for the period under review stood at N1.174 trillion from N1.23 trillion recorded for the same quarter of 2022.
Net cash generated from operating activities for the first quarter of 2023 was N176.3 billion, a decline of N345.3 billion recorded in the same period last year.
Net cash used in investing activities for the first quarter of 2023 saw a decline to N194.8 billion from N45.53 billion recorded in the same quarter of 2022.
Net cash generated from/(used in) financing activities also saw a decline to N52.9 billion from N18.62 billion recorded in the same quarter of 2022.
Total equity for the first quarter of 2023 amounted to N1.396 trillion from N1.23 trillion recorded in the first quarter of 2022.
