Access Bank’s half year profitability jumps three times

Unaudited quarterly financial statement for the second quarter of this year shows the increased resulted from the growth of both interest and non-interest incomes.

The statement shows net interest income went up to 9.6bn/- during the first six months of this year, compared to 7.9bn/- recorded during similar period of last year as a result of increased lending to various sectors of the economy.

The bank’s balance sheet shows lending to various sectors of the economy amounted to 52.8bn/- during the second quarter of this year, higher than 50.4bn/- recorded during the first three months of this year.

Non-interest income went up to 2.39bn/- during the first six months of this year, from 1.99bn/- recorded during similar period of last year due to increase of other operating income, foreign currency dealings and transaction gains as well as fees and commission.

Fees and commission slightly increased to 719mn/- during the first half of this year, compared with 634mn/- recorded during similar period of last year, while other operating income gained to 1.6bn/- compared with 1.3bn/- respectively.

The statement shows all these translated into an increase of operating income to 1.08bn/- during the first six months of this year, from 322mn/- recorded during similar period of last year.

The bank’s balance sheet also grew during the reported period, after total assets expanded to 75.45bn/- during the second quarter of this year, from 72.4bn/- recorded during the second quarter.

The growth of the bank’s balance sheet resulted from increased balance with Bank of Tanzania (BoT), which went up to 8bn/- in the second quarter from 5.8bn/- in the first quarter, loans, advances and overdraft.

Total liabilities also went up to 67b/- during the second quarter of this year, compared with 64.5bn/- during the first quarter due to increased deposits mobilization, which amounted to 57bn/- compared with 54n/- respectively as well as deposits from other banks and financial institutions.

Shareholders’ funds gained to 8.4bn/- during the second quarter from 7.6bn/- during the first quarter.

The bank also managed to cut down the rate of Non-Performing Loans to total gross loans to 8.29 percent in the second quarter from 9.77 percent recorded during the first quarter of this year.