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Access Holdings has announced its intention to establish a capital raising programme size of US$1.5bn and a capital raise of N365.00bn by way of rights issue, following its Full Year (FY) 2023 results, showing the group has a shortfall of about N248.19 billion.
The group’s capital adequacy ratio (CAR) dipped by 0.6ppts to 19.01%, as a result of the faster growth (+52.5% yoy to N9.59tn) in Risk Weighted Assets during the period.
“We believe this move is connected to the recapitalisation plans by the CBN, which now states that banks with international license will be required to have a minimum paid up capital of N500.00bn (in share capital and premium only),” research firm Chapel Hill Denham said in a recent report.
Access Holding’s a tier-one Nigerian lender reported a massive 300% surge in after-tax profit to N612.49 billion in its Full Year 2023 results, the last period for which late CEO, Herbert Wigwe was at the helms.
Access saw growth at both net interest incomes of N555.8 billion and net fee income of N207.7 billion revenue lines while Fair value gains on non-hedging derivatives, equity investments and Fixed income securities brought in a further N512.3 billion.
Earnings Per Share (EPS) surged to N17.23 in FY 2023, compared to N4.29 in 2022.
Access Holdings will pay a final dividend of N1.80 Kobo (One Naira, Eighty Kobo) for every ordinary share of N0.50 Kobo each, subject to appropriate withholding tax (bringing the Total Dividend for 2023 Financial Year to N2.10 Kobo (Two Naira, Ten Kobo).
Non-performing loans (NPL) ratio reduced by 0.36ppts yoy to 2.8% from 3.2% as at FY-22.
“We like that despite the 60.5% yoy (core loan growth of 14.1% yoy and 46.4% yoy FX-driven) growth in the loan book to N8.92tn, asset quality was preserved, demonstrating robust growth and underlying strength in the bank’s lending portfolio amidst challenging market conditions,” Chapel Hill Denham said.
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