Foreign currency depreciation that led to robust foreign exchange gains buoyed Access Bank Nigeria Plc’s profit as the largest lender in Africa’s largest economy continues to surmount headwinds.

Its profit has been on the upswing since it acquired Diamond Bank in 2019, a strategic decision that ensures the lender increases its footprint across the continent and Europe.

For the year ended December 2021, Access Bank’s net income spiked by 51.41 percent to N160.21 billion in December 2021 from N106 billion as at December 2020.

Return on average equity (ROAE) increased to 17.80 percent in the period under review from 15.60 percent the previous year.

Analysts attribute the consistent growth in profit to gains on swap positions that led to foreign exchange gain of N101.17 billion.

The gains were largely on the part of the treasury bill swap position the Bank entered into. It benefited from currency depreciation, according to an industry expert who does not want his name mentioned for the reasons best known to him.

Read more: https://moneycentral.com.ng/exclusive/article/swap-position-boosts-access-banks-profit-as-fx-gains-spike/