NPLs reduce Access Bank’s 2016 profits

Access Bank Ghana, a subsidiary of Access Bank Plc in Nigeria, made a profit of 41.93 million cedis in 2016.

This was down by about 48 percent compared to the profits made in 2015 which was 80.41 million cedis.

In 2016, Access Bank’s total income amounted to 272.62 million cedis from the 267.12 million cedis in 2015.

Though the bank’s income from interests charged on customer loans and investments went up by 12.35 percent, its income from commissions and fees charged on services such as ATM cards, cheque issuance as well as other income sources witnessed a drop between 2015 and 2016.

Like others in the banking industry, Access Bank’s provision for Non-Performing Loans in 2016 was about four times the provisions for NPLs in 2015.

Provision for non performing loans in 2016 was 55.7 million cedis from 15.2 million cedis in 2015.

However the bank’s assets or items that it could lay claim to increased from 2.42 billion cedis in 2015 to 2.67 billion cedis in 2016.

This was influenced mainly by loans and advances to customers which went up by 6 percent from the 1.21 billion cedis to 1.28 billion cedis.

Liabilities similarly increased within the period from 2 to 2.25 billion cedis.

Access bank which listed on the Ghana Stock Exchange in December last year ended trading on Tuesday on the Ghana Stock Exchange with its share prices at 4 cedis.

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  • Origin: citibusinessnews/GhAgent