Equity Analysis /

Access Bank: ACCESS BANK: Q2 weak, but capital & asset quality resilient

    Tellimer Research
    24 August 2017
    Published byTellimer Research
    FX gains mask weak trends in core profit drivers— Access Bank’s Q2 17 results continue the trend of strong trading revenue relating to active derivatives trading which, in our view, masks underlying weak trends in core profitability – evident in high cost of funds and weak cost efficiency. Nevertheless, we reiterate our BUY recommendation on account of: 1) stellar asset quality; 2) capital ratios that are well above regulatory limits; and 3) the bank’s strong and growing deposit franchise – its deposits market share is ahead of traditional stalwarts.