Page 18 - ACCESS BANK ANNUAL REPORTS_eBook

pressures on asset quality and cost of risk, resulting in Refreshed Purpose and Strategy
weaker-than-expected earnings during the operating pe- The year 2017 was pivotal for our Bank, as we concluded our
riod. 5-year (2013-2017) corporate strategic plan, to rank top 3
The Group posted revenue of N459 billion, a 20% increase on a balance scorecard basis in the industry. We achieved a
from the previous year, reflecting the strength and sus- significant level of success with respect to most of the in-
tainability of our diversified businesses and enhanced retail dices, as a result of our discipline, hard work, and commit-
market penetration. However, the exchange rate volatility ment to our strategic objectives.
and other economic headwinds, which resulted in signifi-
cant loan loss provision, affected profitability as profit be- 2018 marks the continuation of our journey and will take us
fore taxes reduced by 11% from N90 billion in 2016 from to our next destination – Africa’s Gateway to the World. This
N80 billion in 2017. will be the year to redefine our market positioning, not only
The overall quality of our risk assets was also impacted as in Nigeria but across our continent, as we commence the
NPL ratio increased to 4.8% in 2017 from 2.1% in 2016 as implementation of our next 5-Year Corporate Strategy.
a result of the heightened risk environment. Nonetheless,
our commitment to robust and proactive risk management Our path to #1 in Nigeria and the world’s most respected
practices remains imperative as we strive to maintain a African Bank will be built on six elements:
healthy balance sheet.
Total assets rose by 18% from N3.5 trillion to N4.1 trillion • Retail Banking Growth & Wholesale Banking
while loans and advances of the Group grew by 11% to Consolidation, to dominate rising middle
close at N2.1 trillion as at December 31, 2017, largely on segment and capture growth in other deposit
the back of the currency devaluation in the second half of rich, transaction segments.
2016. Customer deposits increased by 7% to N2.2 trillion
from N2.1 trillion recorded in 2016. • Digital Led Bank, with focus on enhancing
As a Group, strong capital and liquidity are considered nec- consumer experience through automation of
essary enablers of sustainable growth and profitability. Our processes along the customer experience
capital position remains strong at 20%, well above regula- journey.
tory minimum and has been an effective catalyst for ab-
sorbing macro shocks and providing sufficient headroom • Customer Focused Bank, putting the customers
to leverage market opportunities. first by providing them with positive experience
During the year, the Group made great strides towards re- coupled with tailored offerings at every point of
designing its systems, keeping our customers at the core, contact.
so as to effectively cater to their increasingly sophisticated
needs. We continued to ensure the implementation of the • Analytics Driven Insights and Robust Risk
Group’s digital banking strategy to achieve: Management, achieved by leveraging data driven
insights from advanced analytics drive deeper
(i) Significant customer acquisition. customer understanding and make on-point
(ii) Seamless, omni-channel customer experience. decisions.
(iii) Accelerated customer migration to alternative
e-channel platforms. • Global Collaboration, by identifying and pursuing
opportunities particularly in trade, payments and
Our overall performance underscores our commitment to correspondent banking.
the continued execution of our strategy; to generate sus-
tainable economic returns, while maximizing shareholder • Universal Payments Gateway, to be a global
value. It further demonstrates our competence and ability payments solutions provider and the dominant
to adapt to regulatory and market changes. intermediary for payments across Africa by
The outlook for the Nigerian Banking sector was fairly pos- developing proprietary solutions and
itive mid-way through 2017, and while we acknowledge partnerships.
risks, I am confident that as a Group we are financially sound
and will remain so through the course of 2018. Now is the time for execution, for capitalising on the prog-
ress we have made, and to seize the opportunities before

18 Access BAnk Plc
Annual Report & Accounts 2017