Home » Herbert Wigwe’s Access Bank posts $211.1-million mid-year profit on back of robust balance sheet

Herbert Wigwe’s Access Bank posts $211.1-million mid-year profit on back of robust balance sheet

by Omokolade Ajayi

Nigeria’s largest lender by asset value Access Bank Plc has announced a double-digit increase in its gross earnings and profit in the first half of 2021. The leading lender continues to leverage its diverse earnings stream and robust assets to generate value for shareholders.

Figures contained in the lender’s latest filings revealed that its profit surged by 42.4 percent on the back of a 14-percent improvement in gross earnings from N396.8 billion ($964.0 million) in the first half of 2020 to N450.6 billion ($1.1 billion) at the end of the first half of 2021.

The double-digit growth in its earnings and profit shows the bank’s capacity to generate sustainable revenues through its strong network of banks in Africa and its robust balance sheet, which is the biggest in Africa’s largest economy.

Access Bank is a Nigerian multinational financial services conglomerate with operations in 10 African countries, including the Democratic Republic of the Congo, South Africa, Ghana, Kenya, Nigeria, Rwanda, Gambia and Mozambique.

The group maintains offices in the United Kingdom, China, India, Lebanon and the United Arab Emirates.

The Herbert Wigwe-led group dominated the Nigerian banking sector in the first half of 2021. Its gross earnings of N450.6 billion ($1.1 billion) dwarfed Zenith Bank’s gross earnings of N345.6 billion ($840.0 million) by 30.4 percent.

However, according to the behemoth’s financial results, Jim Ovia’s Zenith Bank remains the most profitable.

Access Bank is on course to post its highest-ever profit this year, as its N86.9-billion ($211.1 million) profit in the first half of 2021 accounted for about 82 percent of its N106-billion ($257.5 million) profit in 2020.

Aside from the growth in its primary business, the bank could optimize its bottomline due to its effective cost reduction strategy.

In line with the solid financial performance, the board of Access Bank recommended an interim dividend of N10.7 billion ($25.9 million), which translates to a payout of N0.30 ($0.00073) per share on all 35,545,225,622 ordinary shares held by shareholders.

As of press time, 12:55 AM (UTC), Sept. 2, shares in the leading financial services group were trading at N9.25 ($0.02247) per share, 2.78-percent higher than its opening price for the day.

At the current price valuation, Access Bank’s market capitalization is valued at N328.8 billion ($799.0 million), while the market value of Wigwe’s stake in the bank is valued at N14.0 billion (34.1 million).

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