Access Bank Plc Financial Summary for Year End December 2016

Access Bank Plc released its full year Finacial Report for 2016. This makes it the second Bank out of the listed Banks on the Nigerian Stock Exchange (NSE) to make its result public. The stock closed at #5.87k on the last trading day of 2016 and quickly raced to #7.05k on January 23rd 2017 thereby gaining 20.10% in that process. However, it eventually closed January at #6.60k. Access Bank declared a dividend of 40k compared to 30k paid the same period last year, not included here is the interim dividend of 25k paid within the Financial year. This is a dividend yield 6.17% at a price of #6.48k.

Find below the highlight of the result:

12 Months Report ACCESS BANK PLC
	2016 N'000	2015 N'000	change	Year End
Revenue	381,320,783	337,404,230	13%	December
Profit before taxation	90,339,456	75,038,117	20%
Profit for the period	71,439,347	65,868,773	8%
Issued Shares (Units)	28,466,354,000	24,657,086,000
Basic Earnings Per Shares (Kobo)	250.00	265.00	-6%
Last total dividend paid (Kobo)	40.00	30.00	33%

Quarter on Quarter Performance

Revenue

Q1: #80,271,598,000

Q2: #93,796,719,000

Q3: #100,399,665,000

Q4: #106,852,801,000

PAT

Q1: #14,776,662,000

Q2: #24,710,050,000

Q3: #17,608,729,000

Q4: #14,343,906,000

A closer look at the result shows that the impaired loan deteriorated from 1.70% 2015  to 2.10%  at the end of 2016 on total gross risk asset.

Worthy of note is also the income tax expense that increased by 106.12% from #9,169,344,000 to #18,900,109,000. The bulk of which origination of temporary differences which amount to #11,994,470,000. 

The reaction of the Market was swift, as it quickly turn the stock on offer because the Market viewed yield as lower than the Market expectation. We expect massive sell off to continue throughout the week going by what Zenith Bank Plc experienced immediately after they released their own report . This is expected to push the dividend yield above what is currently available.