By Nkiruka Nnorom

Access Bank Plc has announced gross earnings of N76.7 billion for its first quarter ended March 31, 2015, representing 34 percent increase over N57.3 billion posted in the same period in 2014.

The group audited International Financial Reporting Standard, IFRS, results for the period showed that the bank’s net interest income grew by 17 percent to N46.4 billion from N39.6 billion in Q1 2014, benefiting from a loan portfolio growth in 2014 and improved yields on fixed income securities.

Also, the bank’s Profit before Tax (PBT) for the quarter rose by 21 percent to N16.5 billion as against N13.6 billion posted in the corresponding period in 2014, while the profit after tax was up 11 percent in Q1 2015 to N13.7 billion, compared to N12.3 billion in Q1 2014.

The non-interest income of N30.4billion in Q1 2015 compared with N17.6 billion in Q1 2014, increased by 47 percent, supported by growth in net trading income.

Operating income of N54.0billion grew by 28 percent in Q1 2015 compared to N42.2 billion in the corresponding period, the return on average equity (ROAE) of 19.2 percent in Q1 2015, improved by 50bps from 19.7 percent in Q1 2014. Commenting on the results, Herbert Wigwe, Group Managing Director noted that the bank’s financial performance in the first quarter of 2015 marks steady progress towards key strategic objectives.

“Our focus remains on the delivery of sustainable value to our shareholders. We continue to deepen and broaden our top-tier corporate relationships whilst optimising and growing our diverse retail customer base to support low-cost liability growth,” he said Other highlights of the result showed that the bank’s loans and advances recorded a modest growth of two percent to N1.15 trillion in Q1 2015, compared to N1.12 trillion recorded in December 2014.

Customer deposits of N1.39 trillion was down four percent from N1.45 trillion in December 2014, resulting from run-off of expensive funds and replacement with stable and lower cost deposits, as we strive to sustain our margins. The total assets was also up by two percent year-on-year, y/y to N2.14 trillion in Q1 2015 compared to ¦ 2.10 trillion in December 2014, while the bank’s capital adequacy ratio (CAR) stood at19.6 percent compared to 18.4 percent reported in December 2014.

According to the bank, the credit quality was sustained in the first quarter as the percentage of non-performing loans to total gross loans improved to 2.1 percent from 2.2 percent as at December 2014. Similarly, the net interest margin (NIM) of 5.9 percent in Q1 2015 from 7.1 percent in Q1 2014, underlined by increased funding costs.

The cost to income ratio (CIR) improved by 220bps to 62.2 percent during the period under review from 64.6 percent in Q1 2014, driven by revenue uplift during the period.