Due to Access Bank’s subpar financial performance in the second quarter of this year, stockholders suffered a substantial loss in investment on Thursday.
Access Bank disclosed on Thursday that its Net Interest Income declined by -1.25 percent, or N2.51 billion, between April and June after weeks of delay caused the financial institution to miss the deadline for Q2 results filing.
The net interest income, or NIE, decreased from N200.01 billion reported in Q2 2001 to N197.50 billion in the same period this year. NIE is the difference between the income a bank receives from its lending activities and the interest it pays to depositors.
Even though Access Bank increased its net profit to N88.73 billion during the period from N86.81 trillion in Q2 2021, this was only a 2.21 percent increase, which was insufficient to increase investors’ trust in the institution.
Investors sold their shares in response to the publication of Access Bank’s Q2 financial report, resulting in a loss of -2.23 percent for shareholders on Thursday.
As a result, Access Bank’s market value fell from N318.12 billion to N311.02 billion, representing a loss of N7.10 billion.
The stock’s upward trend, which had begun last Thursday when it was priced at N8.65kobo per share, was halted by the sell-off.
On Wednesday, the shares increased to N8.95kobo before dropping to N8.75kobo on Thursday.
Given that Access Bank failed to place among the top 10 best performing banks in Nigeria over the previous two quarters, as reported by Ripples Nigeria, the decline in investor trust in the company was anticipated.
Net interest income at Access Bank fell by -7.02 percent in the first three months of this year.
