2010 Access Bank Annual Report and Accounts

Annual Report
Introduction & Business Chairman & Chief Operating Our People Corporate Social
Contents Overview Executive’s Review Review & Culture Responsibility
At a glance
2010 Performance highlights
N11.7bn
Gross Earnings 2010:
N11,682,000,000
N224.7bn
Total Assets 2010:
N224,720,000,000
N8.02bn
Profit before tax 2010:
N8,021,742,900
28%
-45%
+394%
+202%
FINANCIAL
MARKETS
Contribution to total
profit 2009: +172%
The Financial Markets Division provides
specialised financing and investment
solutions, trading in Fixed Income and
Currency products for our customers.
These functions are carried out through
the Treasury Group and the Corporate
Finance Group.
Access Bank Treasury Group
The Treasury business contributed strongly to
bottom-line profits. Within a dynamic, marketdriven
environment, our teams work closely
with corporate customers, pension funds, and
governments to deliver superior currency and
fixed income solutions tailored specifically for
their requirements. The Treasury Group focuses
on structuring risk management solutions to
help mitigate interest rate and foreign exchange
risks for the bank and its customers. Operating
at the cutting edge of financial services, the
During the 12 month period ended 31
December 2010, Investment Banking Division
was able to sustain and increase profit before
tax by 202% from 2.67bn in December 2009 to
8.022bn in December 2010. The division held
on to its comparative advantage of creating
exceptional value to its clients;
group is widely acknowledged as a market
leader in the Treasury space as evidenced by
its ranking in the monthly polls conducted by
the Financial Markets Dealers’ Association.
We have demonstrated capability to enhance
the trading liquidity in various instruments as
we executed over 10% of the total secondary
market bond transactions conducted in Nigeria
in 2010. We also received acknowledgement
as the first bank to contribute market quotes
for wide-ranging instruments across sub-
Saharan African countries on the Bloomberg
Professional Software ® .
Corporate Finance Group
The Operating Performance for the Corporate
Finance group in the year 2010 was limited
by several challenges which include the
global financial meltdown, stunted economic
growth within the sub-saharan African region,
In 2011, we will continue to build on the
platform for delivering exceptional value to our
stakeholders and to increasing our client base.
unfavourable economic indicators (interest
rates, FX volatility, and inflation) as well as
capital market downturn, among others.
Our project finance/on-lending segment was
particularly affected by the general liquidity
squeeze in the financial sector, which made
Banks unwilling to lend to viable projects
on a long-term basis. Funds received from
development finance institutions were
left largely unutilised or partially utilised.
Opportunities for syndications were also limited
during the year 2010.
We have renewed optimism for a rebound in
the financial markets in 2011, as a result of
various measures being put in place by the
Central Bank of Nigeria, the recovery of
sub-Saharan Africa from the global financial
crisis, sound economic policy implementation,
and favourable commodity prices.
2010 2009 Dec 2009
INVESTMENT BANKING INVESTMENT BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 11,682 8,041 -45%
Interest Expense (1,184) (695) 70%
(Loss)/Profit on Ordinary Activities Before Tax 8,022 2,666 208%
Assets 224,720 45,509 394%
Liabilities 51,596 21,814 137%
Net Assets 173,124 23,695 631%
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Access Bank Plc
Annual Report and Accounts 2010