Access Bank Earnings Decline Amidst EndSARS Controversy, Boycott

Access Bank's earnings declined in Q3 of this year at a period the company is struggling with public trust among Nigerians following its role in the clampdown against Nigerians protesting against police brutality. Access Bank froze the account of EndSARS protesters, leading to Nigerians calling for a boycott against the Herbert Wigwe-led bank.

While the boycott demand kicked in after the third quarter of 2020, Access Bank's Q3 earnings still fell during the period this year. According to the financial statement seen by AllNews, the lender's Interest Income dropped by -14.1% in 2020 Q3 when compared to last year's Q3 turnover.

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The Interest Income of Access Bank stood at NGN105.6 billion as at Q3 this year, failing to surpass the NGN123.07 billion it generated in the corresponding period of 2019 Q3. Meanwhile, the lender's Interest Expense declined in Q3 2020, dropping to NGN58.4 billion, as against the NGN77.05 billion recorded in Q3 this year.

However, Access Bank's Net Interest Income rose to NGN70.06 billion during this year's Q3 2020, rising above the NGN55.07 billion it reported during the same period last year's third quarter. Also, Profit Before Tax rose, ending Q3 at NGN42.3 billion this year, higher than the NGN27.8 billion Access Bank posted in Q3 2019.

In the same vein, Access Bank recorded growth in its Profit After Tax, which stood at NGN41.2 billion in Q3 2020, surpassing the NGN26.56 billion the company reported as Profit After Tax last year third quarter; which is the three months of July to September.

Access Bank In A Controversial Mess

Last week wasn't a good one for Access Bank in the stock market, as investors dump their Access Bank shares and ran for the door following a boycott against Access Bank by Nigerians. High sell-off was experienced from the lender's investors, who crashed the share price just to do away with Access bank's shares.

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Investors' confidence in Access Bank is fluctuating amidst the online protest against Access Bank. The lender had blocked accounts of eight protesters who took part in the #EndSARS protest after receiving a directive from the Central Bank of Nigeria (CBN). Access Bank restricted the accounts despite its rival, Stanbic IBTC stating that without a court order, it won't be freezing its customers' accounts.

Already, Access Bank has been sued by Gatefield Nigeria for NGN100 million for freezing the company's account without court order. Gatefield Nigeria had raised funds for journalists covering the EndSARS protests across Nigeria. In the wake of the protest against Access Bank, it's share price fell, but it managed to close last week on a flat.

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