Are you ready? Bitcoin is becoming a legal tender
Hello!
We can sit and argue all day that digital banks like ‘Kuda’ and ‘Prospa’ are going to be more profitable than traditional banks like GT Bank, Access Bank etc. but that has not stopped the big boys from raking in profits. Profits, especially, from loans and transfer fees.
Access bank announced their 2021 Q2 result. Technically, 2021 H1 result.
The opening statement says “Access Bank recorded a very strong performance in H1 2021, achieved through our unique business model that supports the corporate and retail value chains throughout the African continent and beyond. With improving profitability, resilient capital position and a robust, diversified balance sheet, the Group is on track to deliver on its vision to be the World’s Most Respected African Bank.”
Below are key points from the result:
Gross Earnings rose 14% y/y to ₦450.6bn in H1 2021, (H1 2020: ₦396.8bn), with interest and non-interest income contributing 71% and 29% respectively.
Profit Before Tax (PBT) for the period rose by 31% y/y to ₦97.5bn (H1 2020: ₦74.3bn). Profit After Tax (PAT) also grew by 42% y/y to ₦86.9bn from ₦61.0bn in H1 2020, buoyed by a 30% y/y growth in Interest Income, 45% y/y increase in Net Fee and Commission Income, and Interest Expense remaining flat (-0.7% y/y).
The assets base of the Group remained strong with Total Assets of ₦10.1trn in June 2021, a growth of 16% YTD from ₦8.7trn in December 2020. Net Loans and Advances totalled ₦4.0trn as at June 2021 (December 2020: ₦3.6trn).
Non-Performing loans (NPL) ratio stood at 4.3% as at June 2021 (December 2020: 4.3%), on the strength of the efficacy of our risk management strategy.
Central Banks are ramping up their digital money, with Nigeria’s e-naira set to be launched in October. There’s a video that shows how you can fund your e-naira wallet.
The question, however, is will this fix fx?
Have a good evening.
Samson Omamuzo (LINKEDIN)
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Samson Omamuzo (LinkedIn)