Q1 2013: Access Bank Records Drop In Financial Performance

By Festus Okoromadu

Access Bank”s financial figures for first quarter ended March 31, 2013 showed a decline in major performance indices when compared to  the corresponding period in 2012.

For instance the bank’s gross profit dropped by 18 per cent to N9.915 billion as against N12.114 billion in the similar period of 2012 while net profit dipped further by 22 per cent to N9.206 billion from N11.735 billion. Gross earnings went down by one per cent during the period to N52.709 billion from N53.059 billion in the similar period of 2012.

Consequent upon the lull in performance indices, earnings per share dropped by 19 per cent to 41.92kobo per share as against 51.48kobo in 2012.

However, the bank’s performance during the review first quarter cannot be attributed to decline in patronage as her customers’ deposit for the period grew marginally by one per cent to N1.211 trillion from N1.201 trillion in 2011. However, deposits from other banks declined by 59 per cent to N42.877 billion in the period under review as against N105.171 billion in 2012.

The bank’s assets base also suffered a setback during the period as total assets reduced by two  per cent to N1.703 trillion from N1.745 trillion in the previous year. However, a decline in total liability exceeded that of assets during the period as total liability dropped by three per cent to N1.455 trillion from N1.504 trillion in the comparing period of 2012.

It will be recalled that the bank had earlier in the week announced her 2012 audited account alongside some corporate actions which some shareholders had considered not too encouraging.

The bank has proposed a total dividend of 85kobo having paid an interim dividend of 25kobo earlier. Although, the share price of the equity remained stable at N10.50 per share at the close of trading today, market analysts are of the view that investors’ response to the first quarter performance might not be encouraging in the weeks ahead.