Access Bank Get Shareholders Approval to Raise N100 Billion Fresh Capital, 30 Kobo Final Dividend

Access Bank

By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Shareholders of Nigeria’s top tier lender, Access Bank Plc on Wednesday at its 27th Annual General Meeting (AGM) approved the 30 kobo per share final dividend earlier offered by the board in its 2015 audited year end and authorised directors to raise a fresh fund of N100 billion.

The shareholders gave the approval to raise the fresh capital through the issuance of non-convertible loans, notes, bonds and or any other instruments.

Also, Access Bank shareholders said the fresh fund could be either be alone issue or a debt issuance programme by way of a private placement, public offering, book building process or any other method or combination of methods.

Herbert Wigwe, chief executive officer (CEO) of the Bank told the shareholders that Access Bank will cautiously maximise its strong capital position to realise the full value of its network with the aim of attaining its strategic objectives.

“We will continue to take proactive steps to ensure that we optimise our capital structure, in terms of both debt and equity to maintain a robust balance sheet even in difficult times,” he said.

The lender had earlier strengthened its capital position by raising equity capital via rights issue to achieve sufficient capital headroom to support the attainment of its longer-term objectives, according to Wigwe.

The offer which was concluded in August 2015 yielded a tier-one capital injection of N41.7 billion to Access Bank.

Mosun Bello Olusoga, chairman of the Bank  said that, “In spite of the operating environment, I am pleased to announce that the group posted another solid year of strong earnings in 2015, as revenue grew by 38 percent to N337 billion for the year from N245 billion in 2014. Profits also rose to N75 billion in 2015 from N52 billion in 2014, with significant contributions from our securities trading business.”

A review of its audited report for the period ended December 31, 2015 showed that pretax profit climbed up 88 percent to N75.04 billion from N39.92 billion recorded a year ago.

In the same vein, profit after tax (PAT) grew 113.4 percent to N65.87 billion from N30.87 declared the same period 2014.

Gross earnings of Access Bank increased from N245.38 billion in 2014 end to N337.40 billion in the review period of 2015, showing an increase of 37.5 percent, the lender in a filing with the Nigerian Stock Exchange (NSE).

The Bank also said its pretax profit for the period ended March 31, 2016 climbed up 37.5 percent to N22.582 billion from N16.517 billion posted a year ago.

Similarly, profit after tax (PAT) of the bank rose 46.15 percent to N19.418 billion from N13.667 billion recorded in the same period of 2015.

Interest income of Access Bank increased from N46.414 billion in the Q1 of 2015 to N55.437 billion declared in the review period of 2016; showing an increase of 19.56 percent.

Access Bank which had earlier paid an interim dividend of 25 kobo per share said the 30 kobo ordinary share final dividend is payable to shareholders on the register as at April 12, 2016.

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