Access Bank, 3 other DMBs declare N330.6 profit in 2015

Four Deposit Money Banks (DMBs) quoted on the Nigerian Stock Exchange (NSE) reported a profit after tax of N330.6 billion for the year ended December2015 despite challenging environment and harsh policies by Central Bank of Nigeria (CBN).

The four DMBs include Access Bank Plc, Guaranty Trust Bank Plc (GTBank), United Bank for Africa Plc and Zenith Bank Plc.

The total sum declared represents 16 per cent growth from N284.9 billion recorded by the same banks in 2014.

According to data gathered by Nigerian NewsDirect, Zenith Bank and GTBank contributed 32 per cent and 30 per cent of the N330.6 billion declared profit in 2015.

A review of the 2015 results shows that all the four DMBs posted positive performance across all financial indices, reaffirming their position as most profitable and well managed financial institutions in the country.

Access Bank Plc recorded the highest profit after tax with a 53 per cent growth from N43.06 billion in 2014 to N65.9 billion in 2015, followed closely by UBA with a growth of 25 per cent from N47.9 billion in 2014 to N59.65 billion in 2015.

Zenith Bank and GTBank recorded a marginal growth of six and five per cent in profit after tax to N105.66 billion and N99 billion in that order.

With impressive profit after tax, the four banks proposed dividend payment to shareholders with the Zenith Bank paying the highest followed by GTBank.

Zenith Bank management proposed a total dividend of N1.80 while GTBank is expected to pay shareholders N1.77. Access Bank and UBA Plc have also declared N0.55 and N0.40 respectively.

The declared dividend and impressive profit reflected on two banks share price with Zenith Bank gaining N0.44 from N12.35 it opened to N12.79 while UBA top the gainers chart when its share appreciated by N0.33 from N3.44 to N3.77 on last week Friday.

On the contrary, the share of Access Bank and GTBank dropped by N0.47 and N0.58 to N3.95 and N 15.67 respectively.

The managements of all the four banks lamented over macroeconomic challenges, regulatory and market specific challenges faced by the banking industry in 2015.

They promised to introduce new banking products and innovation in order to maximize shareholders return and also, support real sector of the economy.

‘Maximize shareholder value in 2016 and beyond’- CEO/GMD, Access Bank

The Group Managing Director / Chief Executive Officer of Access Bank Plc, Herbert Wigwe, in a statement said, “2015 results reinforce our resolve to generate sustainable returns despite challenging market conditions.

“Guided by a robust risk management framework, our diversified business model yielded positive results as we grew the business cautiously and recorded sound prudential ratios.

He said, “We also made remarkable headway in redesigning our systems and processes to enhance service delivery across all customer touch points, with emphasis on tailored customer interactions. Leveraging innovation, we introduced products and solutions which have enhanced our brand equity and recorded significant customer adoption and migration to our digital platforms.

“In the coming year, we will remain resilient in the execution of our bold strategy for increased growth and profitability.

“Though market conditions will remain challenging, we will focus on innovation, proactive risk management and data analytics as catalysts for diversifying income streams and enhancing retail expansion, so as to maximize shareholder value in 2016 and beyond,” Wigwe added.

‘Committed to delivering superior and sustainable returns’- CEO/GMD, GTBank

The Managing Director/CEO of Guaranty Trust Bank plc, Segun Agbaje, said, “the Bank’s financial performance in 2015 is an indication that we have earned the loyalty of our customers and an attestation of the hard work and dedication of our staff, management and Board.

He further stated that, “As a Bank, we will continue to actively partner with our customers and grow our business in a sustainable manner that is not only driven by profit objective, but with an increased focus on empowering our customers with a view to growing Nigerian economy.

“Also, we remain committed to maximizing shareholders’ value and delivering superior and sustainable returns whilst actively expanding our franchise in select, high growth African markets where we believe we have a competitive advantage.”

‘Continue to invest in future and manage cost to generate strong returns to shareholders’ - CEO/GMD, UBA

The CEO/GMD of UBA Plc, Mr. Phillips Oduoza, in a statement said, "Our 2015 profit is a new record and I am pleased that our performance is beginning to reflect the hard work and discipline of our Board, Management and Staff in creating superior value for our stakeholders.

“We remain committed to growing in a responsible manner that aligns with our vision of building an enduring institution. Notwithstanding the challenging business environment, our resilient business model, geographic diversification, proactive strategies, and strong governance created an edge for us through the year.

“We will continue to invest in our future whilst managing cost tightly to generate strong returns to shareholders. Overall, we grew profit before tax by 22 to an historic record of N69 billion. More importantly, we closed the year with a 25per cent year-on-year growth in profit after tax to N60 billion; impressive performance which translates to 20per cent return on average equity,” Oduoza added.

‘More emphasis will be placed on agriculture and the real sector’- Zenith Bank

In addition, the management of Zenith Bank Group explained that the performance for the period ended December 31, 2015 further confirms Zenith’s industry leadership and consistency in delivering superior financial returns in spite of the macroeconomic, regulatory and market specific challenges faced by the Nigerian banking industry.

The bank explained further that, “Despite a tough competitive operating environment and the challenges caused by weaker oil prices and tightening monetary policy, management is of the opinion that barring any unforeseen circumstances, the group is well positioned to take advantage of opportunities to grow its customer base and risk assets. More emphasis will be placed on agriculture and the real sector while providing support to local production and manufacturing.”