Access Holdings' net profit for the first three quarters of the year rose about 83 percent, its unaudited accounts showed, as West Africa's biggest lender saw a huge boost to its interest income.
Other key sources of income also saw notable growth.
Gross profits more than doubled to N3.4 trillion, with interest income contributing more than 70 per cent of that sum, putting the corporation on track to achieve the N5 trillion turnover target. that had been set for this year.
Much of the financial services group's revenue did not turn into profit in the period under review as expenses continued to rise, hurting profits.
Net profit margin, the portion of revenue that ultimately translates into profit after tax, stood at 13.4 percent, up from 15.7 percent.
Access Holdings, which aims to claim a place among the continent's top five banks by 2027, is taking a long-term view by committing a large portion of its resources to consolidate its share in key markets outside its base in Nigeria.
Return on equity stood at 14.6 percent, compared with 11.9 percent a year ago.
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Interest expenses accounted for up to 64.8 per cent of the N2.4 trillion the organization generated during the period, leaving net interest income at N844.8 billion.
The cash that finally entered the bank's coffers after the impairment was accounted for is even more modest: N699.9 billion.
Access Holdings' provision for problem loans and other impaired financial assets soared 134.5 percent, easing some of the headaches that sometimes come with high interest rates.
Nigerian lenders have been charging a lot for loans, thanks to the Central Bank of Nigeria's decision to increase benchmark interest rates by a cumulative 15.8 percent from May 2022 to curb inflation.
While this has created a boom for lenders, it is pushing many businesses to the brink.
Fees and commissions for the period under review almost doubled to N401.5 billion due to an increase in credit-related charges and e-banking revenues.
Profit before tax increased by 89.6 per cent to N558.2 billion, while profit after tax advanced to N457.7 billion from N250.4 billion.
READ ALSO: Access Holdings aims to be among Africa's top five banks by 2027
The comprehensive total increased by 142 per cent to N1.1 trillion, driven by the unrealized foreign currency conversion difference.
The financial services giant, now valued at N41.1 trillion in assets, is considering issuing dollar-denominated securities in two tranches to drive expansion and meet new capital requirements for banks in Nigeria, Roosevelt Ogbonna , executive director of its commercial banking subsidiary. he told reporters on Monday in Lagos.