On the Ghana Stock Exchange-
ACCESS Bank Ghana Plc (ACCESS) performed below market watchers’ expectation after releasing its un-audited HY-2017 earnings reports. The Nigerian bank listed on the local bourse after completing a successful IPO at the close of last year 2016. Profit before Tax (PBT) fell marginally by 1.33%; from GHS 40,806,000 in HY-2016 to GHS 40,262,000 in HY-2017.
Net Interest Income also dipped by 13.76% to GHS 88,331,000 in the first six months in 2017. Despite the bank recording 93.54% improvement in impairment loss on financial assets during the period under review, total operating income of the bank fell by 12.90%; from GHS 137,728,000 in HY-2016 to GHS 119,967,000 in HY-2017. Some tax relief during the period under review led to Net Profit inching up by 6.74%; from GHS 26,405,000 in HY-2016 to GHS 28,184,000. Earnings per share (EPS) remained unchanged compared to prior year currently pegged at GHS 0.24.
Total Borrowings of the bank fell marginally by 3.54%. Customer Deposits also fell by 170.52% during the period. Additionally, loans & Advances went down by 7.07% reflecting the reduction in exposure risk with respect to the bank’s loan book. Shielding the bank’s loan portfolio from credit risk resulted in a Non Performing Loan (NPL) ratio of 20% in HY-2017 from 25.71% in HY-2016. Total Assets increased by 5.15%; from GHS 2,679,608,000 in HY-2016 to GHS 2,817,653,000.
GN Analysts are of the opinion that the bank’s performance is yet to be impacted by the full results of the capital raised during the IPO last year. An improvement in the company’s fundamentals during HY-2017 would have been an appropriate impact of the operational expansions, improvement in the IT infrastructure of the bank and payment of existing debt the IPO aimed at. GN Analysts recommend a HOLD on the shares of ACCESS for now.
Trading activity on the bourse ended with 5 gainers (BOPP, ETI, UNIL, FML and SCB) and 2 losers [GOIL and GCB] yesterday. ETI shares topped the trading chart in terms of volume as 202,700 shares worth GHS 30,377.00 changed hands. Returns on the Composite and Financial Stock Index pegged at 34.25% and 35.36% respectively.
On the Ghana Alternative Market (GAX)
Trading activity on the Alternative Market ended yesterday with 900 shares of Intravenous Infusions Limited [IIL] valued at GHS 72.00 changing hands.
HORDS currently lead record capital gains on the GAX, appreciating by 25% from 2016 year open.
On the Currency market
The Cedi GAINED marginally to the EURO and British Pound on the inter-bank market yesterday. The local currency however remained unchanged against the USD at the close of trade.
The local currency exchanged at a mid-rate of GHS 4.3764 to the USD, GHS 5.6753 to the GBP and GHS 5.1371 to the EURO.
The GCFM Cedi index, a measure of the holistic performance of the Cedi on the inter-bank market now records a year-to-date depreciation of 8.46%.
By GN Research