Access Holdings (ACCESSCORP) released its H1 22 audited results after trading hours on Wednesday (14 September). The group reported marginal growth in Pre-tax profits (+0.4% y/y) and Net profits (+1.5% y/y) during the period. However, Pre-tax profits (-12.5% y/y) and Net profits (-9.6% y/y) for Q2 22 standalone fell. On the H1 22 EPS of N2.52, the board proposed an interim dividend of N0.20 (against N0.30 this time last year), below our expectations. This implies a gross interim dividend yield of 2.1% on the last closing price.

The group recorded decent growth in Pre-provision operating profits, supported primarily in Non-Interest Revenues (NIR), specifically Trading revenues. However, a rise in Loan loss provisions dampened its impact on earnings growth. Nevertheless, the group's H1 earnings, when annualised, are ahead of our and consensus forecasts for FY 22 by 11.3% and 5.0%, respectively, owing to a positive surprise on the Tax expense line.

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