Access Holdings FX gain has climbed by 71% to reach a record seven-year in the first nine (9) months of 2023, and this was attributed to the naira devaluation that suffered the nation's economy.
However, even with the naira devaluation that has affected more industries in these past months, it has been a great achievement for banks as their foreign exchange rises.
Access Holdings reported that its foreign exchange witnessed a gain of N314.6 billion in the first nine months of 2023, and this was derived from converting loans and financial instruments that were denominated in foreign currencies into naira. The record for the first nine months of 2023 was even higher than the corresponding year, which recorded N184.13 billion in the first nine months of 2022.
The holding’s profit after tax grew by a whopping 83%, which was N250.44 billion in the first nine months of 2023; this was greater than the corresponding year of the same period, which was N136.91 billion in 2022.
Access Holding’s profit before tax was N294.42 billion in Q3 2023, up from N10.29 billion in the same period in 2022.
Total revenue recorded for the first nine months was N1.59 trillion, up from N906.93 billion in the same period in 2022.
The holding’s net interest income grew to N389.96 billion in the first nine months of 2023, far from the corresponding year, which amounted to N280.29 billion in 2022.
Additionally, the holding company’s interest income rose to N1.05 trillion from N571.74 billion in the corresponding year.
Read more: https://www.investingport.com/acces...-nine-months-of-2023-shows-positive-increase/
However, even with the naira devaluation that has affected more industries in these past months, it has been a great achievement for banks as their foreign exchange rises.
Access Holdings reported that its foreign exchange witnessed a gain of N314.6 billion in the first nine months of 2023, and this was derived from converting loans and financial instruments that were denominated in foreign currencies into naira. The record for the first nine months of 2023 was even higher than the corresponding year, which recorded N184.13 billion in the first nine months of 2022.
The holding’s profit after tax grew by a whopping 83%, which was N250.44 billion in the first nine months of 2023; this was greater than the corresponding year of the same period, which was N136.91 billion in 2022.
Access Holding’s profit before tax was N294.42 billion in Q3 2023, up from N10.29 billion in the same period in 2022.
Total revenue recorded for the first nine months was N1.59 trillion, up from N906.93 billion in the same period in 2022.
The holding’s net interest income grew to N389.96 billion in the first nine months of 2023, far from the corresponding year, which amounted to N280.29 billion in 2022.
Additionally, the holding company’s interest income rose to N1.05 trillion from N571.74 billion in the corresponding year.
Comments From Analyst at CardinalStone
- This interest income growth was driven by the elevated interest environment and probable 25.4% YoY rise in interest-earning assets that masked the 2.3x jump in interest expense to N658.5 billion.
- Despite a 13.2 percent increase in loan loss provisioning, 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.
Other Increases Recorded at Access Holdings
Access Holdings interest expense increased to N658.51 billion in the first nine months of 2023, which grew more than the corresponding year, which amounted to N291.45 billion in 2022.Read more: https://www.investingport.com/acces...-nine-months-of-2023-shows-positive-increase/