2010 Access Bank Annual Report and Accounts

Annual Report
Introduction & Business Chairman & Chief Operating Our People Corporate Social
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At a glance
2010 Performance highlights
N55.59bn
Gross Earnings 2010:
N55,591,097,000
Total Assets 2010:
N231,625,398,000
Profit before tax 2010:
N10,310,000,000
+147%
N231.6bn
N10.31bn
-11%
+662%
The Commercial banking division serves
businesses, suppliers, distributors of
large corporate organizations and public
sector (Federal and State Government
ministries, agencies and parastatals, wealth
management). The division offers a full
range of banking services and products
to meet the needs of the customers by
following the value chain of the customers.
Despite the changes in the operating
environment, we have remained focused
on our strategy driven by the self
sustaining value chain model. The unusual
changes therefore have resulted in
opportunities for the Bank to sign on new
customers, and increase market share of its
customers’ business.
During the financial year, the Commercial
banking division redefined its structure
and adopted a new organizational model
that was based on customer segments;
— Commercial Banking provided products and
services to suppliers, distributors and other
businesses with an annual turnover below
N5 billion
— Public Sector catered to Federal and State
Government ministries, agencies and
parastatals.
— Wealth Management focused exclusively
on high net-worth individuals by providing
bespoke banking services.
The customer segments in line with the value
chain model of the Bank served customers
of large corporate customers in the Bank’s
chosen target markets/sectors: Oil & Gas,
Telecommunication, Cement, Financial
Institutions, Personal Care, Food & Beverages.
The highlight of our financial performance is
shown below:
2010 2009 Dec 2009
COMMERCIAL BANKING COMMERCIAL BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 55,591 22,504 147%
Interest Expense (7,279) (1,381) 427%
(Loss)/Profit on Ordinary Activities Before Tax 10,293 (1,833) 662%
Assets 231,625 259,071 -11%
Liabilities 361,496 264,997 36%
Net Assets (129,871) (5,925) 2092%
29%
Commercial
Banking
Contribution to total
profit 2009: -49%
The commercial banking division more than
doubled its gross earnings in the financial year
ended 2010. This combined with successful
efforts to recover provisioned assets ensured the
segment returned to strong profitability. Profit
before Tax increased significantly from a Loss
before Tax of N1.8billion in December 2009 to
a Profit before Tax of N10.3billion in December
2010. The division returned to profitability
as a result of the sustainable business
model employed by the Bank. There was an
improvement in the operating environment as
the economy and industry entered the recovery
mode. Credit creation improved as a result of
various policies instituted by the Central Bank of
Nigeria to drive growth through lending to the
real sector of the economy.
In 2011, the operating environment will still be
challenging, however the Commercial Banking
division adhering to best practice will enlarge
market share of its customers businesses. The
group will embrace the values of efficiency,
transparency, accountability, discipline and
fairness to deliver an improved result in 2011.
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Access Bank Plc
Annual Report and Accounts 2010