ACCESS BANK: PINPRICKS FROM NAIRA TUMBLE.

Access Bank PLC apparently had a lucky break in recent months of depreciation in the value of the Naira: Its exposure was limited and so, what should have been blows turned to be pinpricks.

According to audited half year figures released this week, Access Bank bore additional brunt like most banks but looks set to continue smiling.

Of course, its unrealised loss from forex revaluation increased by 84.8% to N15,218.8m; its interest bill on interest bearing debts more than tripled to N2610.5m all because of the fate of the Naira, but all was well.

Well, because only 38% of its interest bearing debts was in foreign currency and although debt securities issued was 100% eurobond, the bulk was from a subsidiary abroad.

It also got a hit from net forex gain which in fact dropped to N11108.1m loss compared to N7929.8m gain previously.

Other blows unrelated to the Naira directly were 15.6% decrease in net gains on investment securities to N33089.2m and 12.1% increase in personnel cost to N22068.1m.

However, by half year, channels and e-business brought in 659.4% more at N18789m; commission on forex transactions edged up by 72.7% to N1432.9m and above all, interest income rose by 13.9% to N112292.6m with interest expense dropping by 13.5% to N43841.9m.

The same thing happened with fee and commission. Driven by e-business, fee and commission closed 107.7% up at N35632.2m while attendant cost dived by 81% to N57.4m.

So, as other operating costs decreased by 5.83% to N41761m, it was rather easy to also take in stride 14.9 % rise impairment provision to N10212.3m.

This way Access Bank PLC tried its best to provide for unrealised but realisable losses from Naira punches and ended the half year with 27.9% profit before tax increase to N50022.9m.

After tax, this came to N39486.7m and the board resolved to pay 25kobo per share interim dividend by September 13 to shareholders in the register by September 6.

ACCESS BANK PLC: Nbn
                    Half year
                   2016.       2015
G. Income 185.2.      168.6
Int.Income 112.3.       98.9
Int. Cost.     43.8.        50.7
Impairment 10.2.        8.89
Commission 35.6.     17.2
   " expense.   0.057.  0.30
Gains on sec. 33.1.   39.2
Forex gain.   (11.1).   7.93
Other income 4.16.   5.99
Personnel      22.1.   19.7
Other exp.     41.8.    44.3
Prepaid rent  0.99.  0.87
Profit b4 tax 50.0     39.1
Profit after    39.5.    31.3
Margin %.     27.0.    23.2

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