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
N5.79bn
Total Revenue 2010:
N5,788,000,00.0
N12.6bn
-42%
The Products & Retail Banking Division
provides a wide range of products
and services to employees and major
shareholders of corporate organizations,
small businesses and customers of
large corporate organizations. The
organizational model for the retail
banking division is structured along three
broad customer segments;
— Employees and major shareholders of
corporate organizations (from medium to
high income professional within an annual
income bracket of N1million to N35million.
— Small businesses independently owned and
operated by an individual or a group of
individuals, with no more than a hundred
(100) employees and an annual sales turnover
between N25million and N500 million.
— Customers of large corporate organizations;
buyers or users of products of the corporate
organization
Our strategy revolves around exploiting the
value chain of Access Bank’s large corporate
clients by offering specialised products and
services tailored to meet their needs. The division
benefits from the strength of the Institutional
and Commercial Banking Divisions, e-banking
channels, state-of-the-art multi-media customer
contact centre and the branch network of the
Bank to grow and serve its customer base.
The highlight of our financial performance is
shown below:
Total Assets 2010:
N12,608,000,000
N1.98 bn
Profit before tax
2010: N1,979,000,000
2%
-46%
+1115%
RETAIl Banking
Contribution to total
profit 2009: 4%
During the financial year ended 31 December
2010, the Retail Banking division recorded
1115% growth in PBT. The significant increase
was as a result of enhanced understanding and
application of the Bank’s value chain approach
to its target market. The performance of the
division was buoyed by the Banks elaborate
Enterprise Risk Management framework
(resulting in better loan quality for the division)
and the deepening of our relations to harness
inherent opportunities.
2010 2009 Dec 2009
RETAIL BANKING RETAIL BANKING vs. Dec 2010
We see tremendous opportunities in our
Retail Banking Division and have made
various significant investments around
risk management capacity and product
development all geared towards an agressive
retail expansion drive in 2011. We will continue
to stay close to our target market, increase
market share of our customers’ businesses and
create new relationships through:
— Increasing customer usage of alternative
channels (internet, mobile, telephone banking
services, migration of more cash transactions
to self-service ATMs and POS etc).
Millions Millions %
Gross Earnings 5,788 9,926 -42%
Interest Expense (655) (2,428) -73%
(Loss)/Profit on Ordinary Activities Before Tax 1,981 163 1115%
Assets 12,608 23,504 -46%
Liabilities 35,409 59,362 -40%
Net Assets (22,802) (35,858) -36%
— The push of our innovative corporate
payment solutions (Access Pay) to ease
transactions and provide a multi-channel
platform for the collection of revenue/
receivables for our clients.
— Leveraging competences and capabilities in
our subsidiaries, external alliances as well as
other Strategic Business Units.
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Access Bank Plc
Annual Report and Accounts 2010