Shareholders of Access Bank Plc have commended the bank and other members of the consortium of banks that provided the $1.2bn loan that saved Etisalat (now 9mobile) from collapsing.
The shareholders stated this at the bank’s 29th Annual General Meeting (AGM) in Lagos on Wednesday.
Mr Bayo Adeleke, immediate past Secretary, the Independent Shareholders Association of Nigeria (ISAN), lauded the bank’s effort in ensuring that the telecoms company did not collapse.
Adeleke said the bank’s decision to accommodate a business that was going comatose helped many Nigerians to retain their jobs in the telecommunication company.
He said the bank’s profit would have increased significantly if not for the telecommunication company’s loan provision.
The bank’s result for the financial year ended Dec. 31, 2017 showed that total impaired loans and advances stood at N101.36 billion from N36.61 billion recorded in 2016.
Adeleke frowned at the N357.17 billion restricted deposits with the Central Bank of Nigeria (CBN) without interest during the period under review.
He said the apex bank should pay interest on the fund in line with laws of Economics.
Adeleke also called for the winding down of the Asset Management Corporation of Nigeria (AMCON), noting that the corporation had overstayed its welcome.
He said Access Bank paid AMCON the sum of N27 billion in the last two years, and the reason for its establishment was no longer necessary.
Adeleke lamented the incessant attacks on banks by armed robbers, urging government at all levels to provide the needed security for lives and property.
Mr Taiwo Oderinde, another shareholder, called for enhanced training of the bank’s chief finance officer, risk officers, among others for improved performance.
Oderinde said the officers should be exposed to local and foreign training due to rising cases of fraud in the industry.
Responding, Mr Herbert Wigwe, Managing Director of the bank, said 2017 was not easy for the banking industry.
Wigwe said the exchange rate volatility and other economic headwinds resulted in significant loan loss provision during the period, which affected the bank’s profitability.
He explained that the drop in its profit was due to the telecommunication firm’s loan provision.
Wigwe told shareholders to expect improvement in the years ahead, noting that the bank was still on the loan issue.
On the issue of security, Wigwe said the country needed to solve its social issues to achieve growth and development.
The bank posted gross earnings of N459.08 billion during the period as against N381.32 billion achieved in the comparative period in 2016, an increase of 20 per cent.
Its profit before tax dropped from N90.34 billion in 2016 to N80.07 billion during the review period, a decline of 11.36 per cent. The profit for the year similarly dropped from N71.44 billion in 2016 to N61.99 billion in 2017.
The shareholders approved a final dividend of 40k per ordinary share held by investors.
The bank had earlier paid an interim dividend of 25k, the same amount paid the previous year
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