2010 Access Bank Annual Report and Accounts

Annual Report
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At a glance
2010 Performance highlights
N17.8bn
Gross Earnings 2010:
N17,753,000,000
N329.7bn
Total Assets
2010: N329,713,000,000
N4.15bn
-59%
-8%
The Institutional Banking Division serves
as the anchor of the value chain strategy/
model of Access Bank. The division
provides a full bouquet of products and
financial services through the various
e-channels and branch network of
the Bank.
The division is structured along the
key sectors in the economy the Bank
has chosen to play in and has built
competence in over the years.
The customers we serve are drawn from
key sectors in the economy such as; Oil
& Gas, Telecommunications, Financial
Services, Food & Beverage, Cement,
Transportation and Household Utilities.
Good understanding of our chosen sectors
and proven successes over the years have
resulted in building deep and long lasting
relationships with customers in our target
market and enhanced our ability to provide
bespoke products & services as value
adding solutions to their banking needs.
Institutional Banking division has experienced
and highly qualified professionals with deep
industry knowledge to run the business in the
targeted sectors. Despite the difficult operating
environment in the year, we maintained a close
relationship with our customers.
The highlight of our financial performance is
shown below:
2010 2009 Dec 2009
INSTITUTIONAL BANKING INSTITUTIONAL BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 17,753 43,649 -59%
Interest Expense (12,415) (25,735) -52%
(Loss)/Profit on Ordinary Activities Before Tax (4,149) (4,722) -12%
Assets 329,713 357,910 -8%
Liabilities 174,339 173,252 1%
Net Assets 155,374 184,658 -16%
Profit before tax
2010: N4,149,000,000
41%
-12%
Institutional
Banking
Contribution to total
profit 2009: -127%
Institutional banking division recorded a
reduced Loss before tax for the 12 month
financial year ended December 2010. Loss
before tax decreased from N4.7billion
in December 2009 to a Loss before tax
of N4.12billion in December 2010. This
represented some improvement as the division
recovered from the spike in loan loss
expense, reflecting the challenging and difficult
operating environment for the division and
its clients. However, the macro prudential
initiatives instituted by the Central Bank of
Nigeria led to an improvement in the volume
of transactions in the second half of the 2010
Financial year, and the impact of the continued
business growth would be more visible in 2011.
Hence, in 2011 the Institutional banking division
strategy continues to be superior customer
service via a relationship team;
— Focused on the customers’ value chain
meeting the needs of existing and new
customers through good grasp of their
business
— Signing of new investment grade corporate
customers for the Bank
— Aggressive loan recovery drive.
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Access Bank Plc
Annual Report and Accounts 2010