The devaluation of the naira, which has devastated many industries, has been a boon for banks since their foreign exchange profits have skyrocketed.
By converting loans and other financial instruments denominated in foreign currencies into naira, Access Holdings reported a foreign currency gain of N314.6 billion in 9M'2023 as opposed to N184.13 billion in the same period of 2022.
The holding company's earnings after taxes increased by 83% from N136.91 billion in the same time of 2022 to N250.44 billion in the ninth month of 2023.
From N147.06 billion in the same time of 2022 to N294.42 billion in the ninth month of 2023, profit before taxes increased.
In 9 months of 2023, total revenue increased to N1.59 trillion from N906.93 billion during the same period in 2022.
In the ninth month of 2023, net interest income increased to N389.96 billion, up from N280.29 billion during the same time in 2022.
From N571.74 billion to N1.05 trillion, the holding company's interest income increased.
“This interest income growth was driven by the elevated interest environment and probable 25.4 percent year-on-year rise in interest-earning assets that masked the 2.3x jump in interest expense to N658.5 billion,” analysts at CardinalStone said in a note.
Between the same period in 2022 and the 9th month of 2023, interest expense climbed to N658.51 billion from N291.45 billion.
From N133.49 billion to N59.63 billion, fee and commission income increased, while fee and commission expenses decreased to N38.31 billion to N208.18 billion."
Between the first nine months of 2023 and the same period in 2022, net fee and commission income increased to N148.55 billion from N95.18 billion.
After falling to N17.22 billion in the same time of 2022, the holding company's other operating income increased to N22.11 billion in the ninth month of 2023.
The holding company's net impairment charge on financial assets stood at N61.83 billion during the period. Access Holdings account maintenance charge and handling commission increased to N21.85 billion in 9M’2023 from N18.71 billion in the same period of 2022. Channels and other e-business income increased to N70.35 billion in 9M’2023 from N49.4 billion in the same period of 2022. Personnel expenses increased to N117.63 billion in 9M’2023 from N89.84 billion in the same period of 2022.
Amortization and impairment climbed to N12.63 billion from N10.28 billion, while depreciation increased to N30.54 billion from N22.47 billion.
From N12.38 billion during the same time in 2022 to N37.48 billion in 9M'2023, interest revenue on loans and advances to banks increased dramatically.
In a same vein, interest revenue from customer advances and loans rose from N352.01 billion to N458.41 billion.
Analysts at CardinalStone said that "cost-of-risk was 10 basis points lower at 1.1 percent compared to 1.2 percent in 9M'22, highlighting the more robust 34.7 percent expansion in gross loans, despite a 13.2 percent increase in loan loss provisioning."
In the ninth month of 2023, net cash generated from operating activities increased to N1.41 trillion from N249.02 billion during the same time in 2022.
From N38.58 billion in negative cash flow during the analyzed period, net cash created from investing activities was negative N688.97 billion in 9M’2023.
During the first nine months of 2023, net cash generated from financing activities was N396.18 billion lower than the same period in 2022 (when it was N429 million).
At the end of the quarter, cash and cash equivalents climbed from N1.76 trillion in the same period of 2022 to N2.37 trillion in 9M'2023.
In the ninth month of 2023, earnings per share increased to N692 from N387 during the same time in 2022.
Post a Comment