Access Holdings Plc has reported a remarkable increase in its net foreign exchange gains, which rose by 362% to N244 billion in the first half of 2023 from N52.84 billion recorded in the same period in 2022. This substantial growth was outlined in the group’s consolidated and separate interim financial statements filed with the Nigerian Exchange Limited. The financial institution attributed the Nigerian economy’s first-half slowdown to various factors, including the unification of the exchange rate and subsidy removal. Despite challenges, there is cautious optimism as the new government initiates key reforms.
Key Points:
- Access Holdings Plc has witnessed a significant surge in net foreign exchange gains, marking a 362% increase to N244 billion in H1 2023 from N52.84 billion in the same period last year.
- The Nigerian economy experienced a slowdown in the first half of 2023, influenced by factors such as exchange rate unification and subsidy removal.
- Noteworthy reforms, including the repeal of the Electric Power Sector Reform Act, offer a sense of optimism for the economy.
- The removal of petrol subsidies and foreign exchange market changes have had ripple effects on domestic prices, impacting both businesses and households.
- The Central Bank of Nigeria issued a circular in September advising lenders not to utilize FX revaluation gains for dividends or operational expenses, emphasizing the need to reinforce capital reserves against economic shocks.
- Access Holdings’ gross earnings saw a notable increase of 58.89% to N940.31 billion, compared to N591.80 billion in H1 2022. Total comprehensive income for the period surged by an impressive 1,041% to N556.78 billion.
- The Board of Directors proposed an Interim Dividend of 30 Kobo per ordinary share of 50 Kobo, payable to shareholders.
Analysis: Access Holdings’ exceptional performance in net foreign exchange gains underscores its adept management of financial strategies. Despite economic challenges, including subsidy removal and exchange rate adjustments, the institution has shown remarkable resilience. The substantial increase in total comprehensive income reflects a solid foundation and effective management. The commitment to investing in digital and technological capabilities indicates a forward-looking approach in a competitive and disruptive landscape.
Background: Access Holdings Plc has reported a substantial surge in net foreign exchange gains, recording a 362% increase to N244 billion in H1 2023 from N52.84 billion in the corresponding period in 2022. This impressive growth was outlined in the group’s consolidated and separate interim financial statements submitted to the Nigerian Exchange Limited. The financial institution attributed the Nigerian economy’s first-half slowdown to various factors, including the unification of the exchange rate and subsidy removal. Despite challenges, there is cautious optimism as the new government initiates key reforms.