Business
Access Holdings Grows Revenue to ₦2.2trn in H1 2024
Access Holdings Plc, a leading global financial institution, announced its half-year audited financial results for the period ended 30 June 2024, National Association of Online Security News Publishers, NAOSNP can report.
The results underscore the company’s continued resilience, focus on delivering sustainable performance and commitment to creating long-term value for shareholders.
Performance Highlights
Access Holdings Plc demonstrated strong performance across all key balance sheet indicators and continues to maintain a well-structured, healthy, and diversified financial position.
This is evident in the resilient half year results from the banking franchise operating in twenty-two markets across four continents and the non-banking subsidiaries including Access Pensions, Hydrogen Payments, and Access Insurance Brokers.
In half year 2024, total assets and shareholders’ equity stood at ₦36.5 trillion and ₦2.8 trillion, respectively. This represents a year to date of growth of 37.1% and 29.8%, respectively.
Customer deposits increased by 31.3%, from ₦15.3 trillion in December 2023 to ₦20.1 trillion by half year 2024. Gross loans and advances also saw an increase of 37.6%, growing from ₦8.9 trillion in December 2023 to ₦12.3 trillion by half year 2024, from organic loan growth and the impact of foreign currency-denominated loans.
Access Holdings reported triple-digit growth across all profitability metrics, with gross revenue rising by 133.5% year-on-year, from ₦940 billion in half year 2023 to ₦2.2 trillion in half year 2024.
This increase was supported by higher interest and non-interest earnings in the period. Interest income surpassed the ₦1 trillion mark, from the expansion of risk assets and effective pricing, leading to a 142% growth from ₦606.8 billion in half year 2023 to ₦1.47 trillion by half year 2024.
Non-interest income also grew by 117%, rising from ₦333.4 billion in half year 2023 to ₦723.6 billion in half year 2024.
Profit before tax increased by 108.2% year-on-year, from ₦167.6 billion in half year 2023 to ₦348.97 billion in half year 2024, while profit after tax rose by 107.7%, from ₦135.4 billion to ₦281.3 billion over the same period. This resulted in a 103% growth in earnings per share (EPS), which increased from ₦3.74 in half year 2023 to ₦7.58 in half year 2024.
Cost-to-income ratio (CIR) remained relatively flat at 60.4% in half year 2024 despite double digit growth in inflation and devaluation in the same period. Cost to income was moderated as revenue outpaced operating expenses.
The increase in operating expenses was primarily from ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1% and 37%, respectively, and will normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses, and the currency conversion impact of subsidiaries’ operating costs.
To maximise value for our shareholders, Access Holdings Plc has declared an interim dividend of 45 kobo per share (half year 2023, 30 Kobo), representing a 50% increase in dividend payout.
Banking Group Performance
Despite the challenging operating environment and tight monetary policy stance, Access Banking Group recorded strong year-on-year growth across all performance metrics, with Interest and non-interest income contributed significantly to gross earnings.
Net interest income grew by 131% from N232.2 billion in half year 2023 to N536.7 billion in half year 2024. Fees and commissions increased by 94% year on year from N119.8 billion to N232.5 billion from higher transaction volumes on our digital channels, credit related fees and card payments.
The Banking Group subsidiaries contributed 55% to the Group’s Profit Before Tax (PBT), demonstrating the significant impact of their operations and growing importance in driving overall profitability. Year-on-year, their PBT performance grew by 218% from N63.3 billion to N201.7 billion.
As part of our ongoing strategic expansion beyond Nigeria, we have successfully completed the full integration of the merged entities in Zambia and Tanzania operations.
These developments not only enhance our presence in key markets but also create significant value by expanding our customer base, strengthening cross-border banking capabilities, and fostering increased operational efficiency across our subsidiaries.
Regulatory Ratios
Through our proactive risk management approach, the non-performing loan (NPL) ratio closed at 2.72% in half year 2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR) remained strong at 19.8%.
Our loan-to-funding and liquidity ratios also improved to 63.9% and 57.2%, respectively. All prudential ratios exceeded regulatory requirements, underscoring our ability to maintain a robust and liquid balance sheet.
Non-Banking Subsidiaries
The operating performance of our non-banking subsidiaries demonstrates a consistent growth trajectory. Access Pensions has achieved a remarkable 162.1% increase in Assets Under Management (AUM), rising from ₦1.1 trillion in December 2023 to ₦2.9 trillion in the first half of 2024.
This growth is driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions. As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts.
Furthermore, the operating income for the pension business saw a substantial increase of 190%, climbing from ₦5.6 billion in H1 2023 to ₦16.2 billion in H1 2024.
Hydrogen Payments achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company.
The total payment volume (TPV) processed surged by 306%, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023. Notably, 90% of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria.
The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted significant growth with an 83% increase in gross premiums written and a 60% rise in commission income in the first year of operations. Specifically, gross written premiums surged from N2.3 billion to N5.9 billion by half year 2024.
Regulatory Ratios
Through our proactive risk management approach, the non-performing loan (NPL) ratio closed at 2.72% in half year 2024, below the regulatory threshold of 5%. Capital Adequacy Ratio (CAR) remained strong at 19.8%.
Our loan-to-funding and liquidity ratios also improved to 63.9% and 57.2%, respectively. All prudential ratios exceeded regulatory requirements, underscoring our ability to maintain a robust and liquid balance sheet.
Non-Banking Subsidiaries
The operating performance of our non-banking subsidiaries demonstrates a consistent growth trajectory. Access Pensions has achieved a remarkable 162.1% increase in Assets Under Management (AUM), rising from ₦1.1 trillion in December 2023 to ₦2.9 trillion in the first half of 2024.
This growth is driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions.
As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts. Furthermore, the operating income for the pension business saw a substantial increase of 190%, climbing from ₦5.6 billion in H1 2023 to ₦16.2 billion in H1 2024.
Hydrogen Payments achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company. The total payment volume (TPV) processed surged by 306%, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023.
Notably, 90% of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria.
The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted significant growth with an 83% increase in gross premiums written and a 60% rise in commission income in the first year of operations. Specifically, gross written premiums surged from N2.3 billion to N5.9 billion by half year 2024.
Our agile execution strategy and customer-centric approach position us as a market leader in Nigeria, while simultaneously enabling us to consolidate market share in existing locations beyond Nigeria and explore opportunities in new geographies under consideration for expansion.
Outlook for the Rest of the Year
Access Holdings remains confident in its ability to surpass the growth momentum achieved in the first half of the year as we look ahead to the second half.
Our strategic priorities will remain focused on scaling non-banking segments, expanding our digital footprint, and solidifying our presence in high-growth African and international markets.
These are geared towards accelerating revenue diversification and ensuring long-term sustainable value creation for our shareholders.
Furthermore, we are fast-tracking the completion of our technology infrastructure integration and upgrades, which will significantly enhance operational efficiency across the group.
This technology transformation will strengthen our digital capabilities, allowing us to deliver superior services to our customers, drive operational synergies, and optimise cost.
Our strategic focus on non-banking segments, digital expansion, and geographic diversification will continue to create lasting value for shareholders, positioning the group to capitalise on emerging opportunities and sustain growth in the long term.
We recently concluded our rights issue of N351 billion, and we are awaiting the Central Bank of Nigeria (CBN) capital verification and the Securities and Exchange Commission (SEC) approval for the allotment of rights. We will keep our investors and shareholders informed as we proceed with the exercise.
The Managing Director/CEO of Unity Bank Plc, Mrs. Tomi Somefun, has commended the lender’s frontline staff for effectively translating its Customer Service Charter thereby forging a culture of responsiveness and exceptional partnership to demonstrate unwavering commitment to customers.
In a message commemorating this year’s Customer Service Week, Mrs. Somefun, who celebrated with staff in customer service roles, expressed deep appreciation to the bank’s clients for their continued trust and loyalty, which have propelled the bank’s growth and success.
“This year’s theme “Above and Beyond” supports our mission at Unity Bank which enables us to reflect on our collective journey so far where our customers are at the centre of our business,” she said.
Somefun further stated that the Bank is continually investing in innovation as well as revamping existing systems, noting that new tools and strategies would be rolled out in the coming months to further enrich customer experiences. “Whether it’s through improved digital platforms or personalized services, we are committed to enhancing the way you bank with us,” she added.
While acknowledging the essential role frontline staff play in creating lasting relationships with customers, Somefun said that through dedication, resilience, and professionalism, Unity Bank Customer Service has demonstrated that it embodies the “Above and Beyond” theme of this year’s celebration.
“Day after day, our staff go beyond the call of duty, ensuring that every customer interaction is handled with care and excellence. They are the reason our customers continue to choose Unity Bank.”
Also speaking, the Bank’s Chief Customer Service Officer, Elfrida Igebu said that, “Throughout the week, we have seen firsthand what it means to go the extra mile. Our commitment to exceeding expectations, personalizing experiences, and showing genuine empathy has set us apart and created lasting connections with our customers.”
She noted that the different activities lined up to celebrate the customer service week “have strengthened the team’s professional capabilities and reinforced the bonds that make us a united team.”
From October 7 – 11, the Bank lined up several activities to celebrate customers and the exceptional teams in its over 200 branches nationwide, rewarding outstanding staff members, while reflecting on the theme of this year’s event – Above and Beyond.
The Bank has continued to prioritize the customer over the past few years through its increased focus on digital strategy. For instance, over the past four years, it has maintained its commitment to customer service excellence by introducing innovative digital products such as the multilingual USSD banking *7799#, and mobile banking solution, UniFi which have boosted customers’ access to the Bank’s services, while facilitating convenience.
These electronic banking channels are constantly updated with new and exciting features to put the customers first and make their banking experiences top-notch in the industry.
Leading Real Estate firm, Adron Homes and Properties, has successfully celebrated the 2024 Customer Service Week, which held between Monday, October 7th and Friday, October 11th, with the theme “Above and Beyond.” The week-long event underscored the company’s unwavering commitment to customer satisfaction as its top priority.
Customer Service Week, observed globally, is an international celebration of the importance of customer service and the people who serve and support customers daily. It provides a platform for companies to appreciate the hard work and dedication of their customer-facing staff, as well as strengthen their relationships with clients.
Throughout the week, Adron Homes organized various activities aimed at enhancing both employee well-being and customer engagement. These included a health talk focused on promoting healthy living, a customer awareness walk to raise visibility and connect with the public, and a mental health awareness session that addressed workplace wellness and stress management, emphasizing the importance of mental health for both employees and clients.
Team bonding exercises were also held to foster collaboration and unity among employees, ensuring they continue to work together in delivering top-tier service. The event concluded with an awards ceremony recognizing staff members who consistently go above and beyond in customer service.
The Director General of the Customer Service Directorate at Adron Homes, Mrs. Aminat Hastrup Olaniyan, praised the company’s leadership for its vision and impact in the real estate sector. “I want to salute the management of Adron Homes for their giant strides in the real estate industry. Their dedication to customer satisfaction has set a standard that others aspire to. I also extend my heartfelt appreciation to all our front-liners for their persistence and the incredible work they continue to do in serving our clients,” she said.
Mrs. Olaniyan’s remarks highlighted the essential role of frontline staff, recognizing their daily efforts to ensure that customers receive the best experience possible.
Group Managing Director, Aare Adetola EmmanuelKing, reiterated the company’s customer-first philosophy, stating, “At Adron Homes, we are committed to exceeding expectations. Customer satisfaction is at the core of everything we do, and this week has been a reflection of our ongoing efforts to improve and deliver outstanding service.”
The Directorate of Customer Service reiterated her commitment to go above and beyond in satisfying and exceeding all our customer’s expectations both home and expanding the frontiers of excellence in customer care and improving customer satisfaction always.
FirstBank, Nigeria’s premier financial institution and leading provider of financial inclusion services, is proud to announce the 63rd edition of the FirstBank Lagos Amateur Open Golf Championship. This prestigious international golf tournament, held under the First@Sports initiative, reinforces FirstBank’s unwavering commitment to sports development and nation-building.
A Legacy of Sporting Excellence
For over six decades, FirstBank has been a driving force in promoting sports in Nigeria, with a focus on golf, polo, and tennis. The FirstBank Lagos Amateur Open Golf Championship stands tall as Nigeria’s most esteemed international golf tournament, attracting top amateur golfers from around the globe.
Unveiling Talent and Fostering Success
This revered competition has become a springboard for success, propelling aspiring professionals to greatness. Many past winners have ascended to the elite professional class, while others have discovered their potential within the tournament’s nurturing environment. The championship provides a global stage for amateur golfers to showcase their skills, earn valuable World Amateur Golf Ranking (WAGR) points, and propel their careers.
This Year’s Edition
The 63rd FirstBank Lagos Amateur Open Golf Championship will take place at the golf club of Ikoyi Club 1938 from November 18-24, 2024. This edition introduces two exciting components:
- “Search for 4 Stars” – empowering 150 young aspiring male & female golfers aged 18-30, currently working as caddies at Ikoyi Club.
- “Championship Kitty” – allowing golfers with a handicap of 10 and above to participate, promoting inclusivity and diversity.
The Corporate Golf Challenge for Charity continues, with net proceeds from team entry fees donated to charities/NGOs under the FirstBank SPARK initiative.
Partnerships and Collaborations
FirstBank has forged strategic partnerships with like-minded organizations to amplify the impact of this year’s championship. These collaborations align with the Bank’s objectives, leveraging collective expertise to create a world-class experience for participants and spectators.
WHAT THEY SAY…
“We are delighted to announce this year’s edition of the Lagos Amateur Open Golf Championship. As we celebrate 63 years of sponsoring the Championship, we reaffirm our dedication to empowering Nigerian youth and promoting national development. Golf has the power to unite, inspire, and transform lives. Through this tournament, we’ve witnessed remarkable success stories, from amateur golfers turning pro to community development initiatives driving positive change. FirstBank remains committed to supporting sports and development initiatives that shape Nigeria’s future and cement its position as a leader in Africa” – Folake Ani-Mumuney, Group Head, Marketing and Corporate Communications, FirstBank
On behalf of Ikoyi Club 1938 Golf Club, we are proud and excited to host the FirstBank Lagos Amateur Open Golf Championship once again. This remarkable 62-year partnership has consistently inspired amateur golfers to push their limits and has paved the way for those aspiring to become professional players.
We are confident that the 63rd edition will continue to uphold the excellence of previous tournaments. We warmly welcome FirstBank, the valued Strategic Partners, and all participating golfers and guests to Ikoyi Club 1938 Golf Club – Tade Adekunle, Golf Captain, Ikoyi Club 1938
Concierge Sports is honoured to serve as the Consultant and Event Manager for the prestigious FirstBank Lagos Amateur Open Golf Championship. As we celebrate the 63rd edition of this iconic event, we are particularly excited about the introduction of new sub-events that enhance empowerment and inclusivity within the Championship.
We extend our gratitude to our long-standing Strategic Partners for their continued support and warmly welcome our newly onboarded partners. Their collaboration is integral to the success of this renowned tournament – Kayode Oguntayo, Concierge Sports
From 18th to 24th November, we will witness a thrilling week of golf, and we eagerly anticipate crowning the next Amateur Champion of the year.
