Sequel to implementation of robust risk management framework, Capital Adequacy Ratio (CAR ) of Access Bank Plc currently stands at 21 per cent and liquidity ratio at 43 per cent, the lender has said.
The CAR for banks in Nigeria stands at 10 per cent and 15 per cent for national or regional banks with international banking licence respectively.
Analysis of the bank’s result for the financial year ended December 31, 2016 showed stable assets quality with nonperfoming loans and cost of risk ratios at 2.1 per cent and 1.2 per cent respectively.
The management of the bank said the low ratio demonstrates the effectiveness of the bank’s risk management culture and prudent approach to lending.
The group recorded a total revenue of 381.3 billion and profit before tax of N90 billion, an increase of 13 per cent and 20 per cent respectively.
“Supporting this growth was a 32 per cent year-on-year increase in net interest income of N13. 1 billion, compared to N105. 4 billion recorded in the corresponding period of 2015, demonstrating the sustainability of its core business,” the lender has stated.
The bank’s reported a non- interest growth of three per cent to N133 billion in 2016 financial year, compared to N129 billion recorded in the same period of 2015, which was driven by strong increase in fees and commissions.
Speaking on the results, the Managing Director of the bank, Mr. Herbert Wigwe, explained that the revenue rose across all operating sections with significant support from the retail business, posting N12 billion in profit before tax and contributing 11 per cent to the group result.