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Access Bank records growth: Operating income rises 28.3%

BY: Business Desk Report
Access Bank records growth: Operating income rises 28.3%
Access Bank records growth: Operating income rises 28.3%

Access Bank Ghana increased its total operating income from GH¢567,042,000 in 2020 to GH¢727,607,000 in 2021.

This represents a 28.3 per cent rise during the period.

The bank, recognised as one of the major supporters for Small and Medium-Size Enterprise (SME) sector also saw its net income grow from GH¢240,792,000 to GH¢321,574,000, representing a 33.5 per cent growth.

In view of the bank’s all-round performance in the past year and in line with its dividend policy, the board proposed a dividend of GH¢0.7927 per share. This is the first by the bank since it went public in 2016.

The Board Chairman of the bank, Frank Beecham, told shareholders of the bank at its 14th Annual General Meeting (AGM) that the sound financial measures adopted across all operational sectors of the bank resulted in the results achieved and commended all stakeholders for their efforts in that feat.

"I am proud to announce that despite the effects of COVID -19 on global economies, your bank grew stronger and more resilient, applying lessons learned and best practice in the sector.”

The bank recorded significant growth in total operating income as well as its total assets. Total operating income and profit after tax recorded significant growth,” he said adding that; “Your bank continues to be efficient with a Pre-tax Return on Investment (ROE) and Return on Asset (ROA) at 37 per cent and eight per cent respectively, placing it among the top banks in Ghana”.

Dividend payout

On the issue of dividend payment, Mr Beecham said "Your bank delivered an excellent all-round performance in the past year and in line with the bank’s dividend policy, the board is pleased to propose a dividend of GH¢0.7927 per share”.

He noted that the bank will continue to consolidate the giant gains made, and continue to focus on upscaling staff with relevant skills to help them work efficiently.

He also assured members of the board’s commitment to sound financial decisions.

Board replacement

Mr Beecham used the occasion to announce his retirement after leading the board since 2014 and the retirement of two other board of directors.

“This year, 2022, three Non-Executive Directors including the chairman of the board would end their tenures with the bank. I will be retiring from the board at the end of June this year.

He expressed his appreciation to esteemed members of the bank, for keeping faith in the bank and in the board.

MD on performance

The Managing Director of Access Bank (Ghana) Plc, Olumide Olatunji on his part, attributed the bank's performance to the collective commitment of staff and improved digital technology deployed by the bank in its operations.

“We achieved significant growth, recording a 41 per cent Profit before Tax (PBT), higher than projected industry growth rate of 27 per cent.

Our total assets also saw a 28.6 per cent growth in 2021 full year, from GH¢5,823,778,000 in 2020 to GH¢7,491,295,000. This is also higher than the projected industry growth rate of 17 per cent.

“Our combined scale, digital capabilities, and ecosystem enabled us to achieve this significant feat. It reflects sheer hard work and efforts we put in our work, bolstered by a team of dedicated professionals and robust risk management structures”, he noted.

He was optimistic about the outlook for the banking industry and the opportunities available to the bank saying: “Adjusting to the emerging financial terrain requires a deliberate focus on executing our strategy to live our brand promise. We will continue to pursue our digital transformation and retail dominance agenda to deliver superior value to our customers.”

Shareholders approved all resolutions on the agenda which included among other things, the ratification of the appointment of two Executive Directors of the Bank: James Bruce and Pearl Nkrumah and to receive and consider the Audited Financial Statements of the bank for the year ended December 31, 2021 together with the reports of the directors and auditors.

At the end, shareholders adopted the 2021 audited financials as presented by Ernst & Young Chartered Accountants for the period.