Access Bank reduces NPL by 12%; grows assets to Ghs 6.9 billion
Non-Performing Loans (NPL) of Access Bank for end-June 2021 witnessed a significant reduction of 12 percentage points.
The Bank’s NPL portfolio at the end of the second quarter of this year accounted for 15 percent of the bank’s total loans, falling marginally below the industry’s NPL portfolio of 17 percent.
For same period last year, Access Bank’s NPL accounted for 27 percent of total loans made by the bank.
A reduction in the bank’s NPL signifies an improvement in its loan asset quality which is occasioned by improved loan repayment levels.
Net assets value of the bank for the review period also grew to Ghs 6.9 billion with the growth in assets value boosted by increases in the bank’s non-pledged trading assets and investment securities.
Access Bank’s non-pledged trading assets and investment securities grew to Ghs 1.2 billion and Ghs 2.4 billion from Ghs 884 million and Ghs 1.7 billion in Q2 2021 and Q2 2020 respectively.
Assets value of Access Bank at end-June 2020 stood at Ghs 5.5 billion, indicating a Ghs 1.4 billion increment in assets value for the review period. The recorded Ghs 1.4 billion increment in the bank’s net assets value was nearly offset by a Ghs 1.1 billion increment in the bank’s liabilities.
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Liabilities for the review period increased to Ghs 5.7 billion at end-Q2 2021 from the figure of Ghs 4.6 billion in Q2 2020. The recorded increment in the bank’s liabilities was mainly driven by increases in deposits from other bank’s and customers of the bank.
Deposits from othr banks and customers at end-June 2021 stood at Ghs. 443 million and Ghs 4.4 billion respectively.
With regards to profit made for the second quarter of 2021, Access Bank posted a profit-after-tax of Ghs 151 million. Compared to the profit-after-tax of Ghs 135 million recorded in Q2 2020, the bank’s profit on a year-on-year basis grew marginally by some Ghs 16 million.
A marginal increment in the bank’s net interest income accounted for the increase in profit made for the second quarter of 2021.
The posted profit-after-tax of Ghs 151 million translates into some 87 pesewas dividends for equity holders of the bank.
Access Bank for the period under review also increased its Capital Adequacy Ratio by 6 percentage points from 22 percent in Q2 2020 to 28 percent in Q2 2021.
The bank’s CAR remains far above the Central Bank’s 13 percent requirement and the industry’s 20 percent CAR.
Peruse financial statement below:
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