Access Holdings Plc, a multinational financial services group, recorded an after-tax profit of N159.3 billion in the first quarter of 2024 from N71.8 billion in the same period of 2022, according to its latest financial statement.
Interest income calculated using the effective interest rate rose to N608.1 billion from N250.9 billion. On the flip side, the holding company’s interest expense surged 179 per cent to N443.9 billion from N158.9 billion driven by the high-interest rate environment.
“The group’s interest income grew by 183.1 percent to N719.60 billion in Q1-24, as all major contributory lines recorded an increase in investment securities (255.4 percent), loans and advances to customers (125.2 percent), loans and advances to banks (292.4 percent) and cash and bank balances with banks (478 percent),” analysts at Cordros Securities said in a statement.
“We attribute the higher core income to growth in investment securities (year-to-date: 142.5 per cent to N8.52 trillion) and elevated interest rates in the fixed-income market.
“The group incurred higher costs on deposits from financial institutions (364.7 percent), deposits from customers (108.4 percent), and other borrowings – interest-bearing borrowings (102.7 percent) and debt securities issued (352.5 percent) in the period under review,” Cordros Securities analysts stated.
The holding company recorded 189 per cent growth in net interest income to N275.8 billion in the first quarter of 2024 from N95.3 billion in the same period of 2022. Net fee and commission income increased to N86.9 billion from N45.4 billion during the period.
Cash and cash equivalents at the end of the period increased to N3.93 billion from N1.17 billion. Movement in cash and cash equivalents reveals that net cash generated from operating activities stood at a negative N28.2 billion from a positive N176.3 billion.
Net cash generated from investing activities stood at a positive N401.2 billion from a negative N194.8 billion while net cash generated from financing activities amounted to a negative N561 million from a negative N52.9 billion.
