Shareholders of Access Bank Plc on Thursday approved the final payment of 25kobo dividend.
Speaking during the Annual General Meeting in Lagos, the Shareholders also commended the Board and Management of the Bank on the successful merger with Diamond bank.
The payment of 25 kobo by the bank brings total dividend for the year to 50 Kobo per share.
The Bank also reassured its shareholders that its five-year strategic growth plan and benefits from its recent business combination will create higher returns in the years ahead.
Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu who spoke on behalf of other shareholders at the meeting applauded the board for the successful merger with Diamond Bank.
He however frowned at charges imposed on banks by Assets Management Corporation of Nigeria (AMCON) and other regulators, saying these have become major concerns to investors.
He urged shareholders to organise themselves in such a way that they can direct their complaints to the government and regulators on the issues affecting banking business in the country.
Addressing the shareholders, Chairman, Access Bank Plc, Mrs Mosun Belo-Olusoga said that despite unfavourable market condition, Access Bank delivered a strong performance, demonstrating an effective strategy backed by strong governance.
She noted that in January 2018, the bank began the implementation of another five-year strategy which should translate to better returns in the years ahead.
“A key aspect of our intent over the next five years is to build a large diversified bank, by consolidating our wholesale franchise and embedding ourselves firmly in the retail market,” Belo-Olusoga said.
She also noted that the bank’s merger with Diamond Bank would create the required scale, customer base and support our desire to achieve a wider reach across the continent.
According to her, the combination will provide us with an increased physical presence and payment capabilities in relevant countries.
“The combination will significantly fast track the achievement of a number of our strategic intents in the short term. It provides us with a competitive advantage that will withstand the realities of market uncertainties, while ensuring sustainable revenue in the years ahead,” Belo-Olusoga said.
Group Managing Director, Access Bank Plc, Mr. Herbert Wigwe said the implementation of the five-year strategy will focus on retail banking growth, adding that the quarterly contribution of the segment to group profits during the year assured that the strategies and investments were prudent.
“Our ongoing collective efforts to deliver exemplary value will be paramount in guaranteeing our profitability and the long-term sustainability of our business,” Wigwe said.
Key extracts of the audited report and accounts of Access Bank for the year ended December 31, 2018 showed that the bank grew pre and post tax profits by 32 per cent and 58 per cent respectively. Gross earnings had risen by 15 per cent. Total assets increased by 21 per cent while customers’ deposit grew by 14 per cent.
The report indicated that gross earnings rose to N528.7 billion in 2018 compared with N459.1billion in 2017. Interest and non-interest incomes contributed 72 per cent and 26 per cent respectively to the top-line. Profit before tax rose from N78.2 billion to N103.2 billion while profit after tax increased to N95.0 billion in 2018 as against N60.1 billion in 2017. With these, earnings per share rose from N2.11 in 2017 to N3.31 in 2018. Return on average equity (ROAE) stood at 19.0 per cent while return on asset closed 2018 at 2.1 per cent.
The bank’s balance sheet remained strong and diversified with total assets rising to N4.95 trillion in 2018 as against N4.10 trillion in 2017. Loans and advances increased from N2.06 trillion to N2.14 trillion. Customer’s deposits improved to N2.57 trillion from N2.25 trillion. Capital adequacy ratio (CAR) remained adequate at 20.8 per cent, taking into consideration the regulatory transitional arrangement of IFRS 9 implementation.
