Investor Presentaiton
Operating Expenses & Impairment Charges
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1.
Operating Expenses (N'bn)
64.6%
64.9%
62.2%
62.1%
57.0%
34
28
27
25
22.3
24
14.0
17.6
15.2
15.7
4.2
2.4
2.1
2.2
2.3
7.5
7.9
9.6
8.9
6.4
Q1'14
Q2'14
Q3'14
Q4'14
Q1'15
Personnel
Depreciation
Other Expenses 1
Impairment Charges (N'bn)
Cost to Income
1.6%
1.4%
1.2%
1.0%
0.2
0.3
0.5
0.9
0.1%
4.5
3.2
3.0
3.0
1.2
0.3
Q1'14
Q2'14
Impairment on Loans
Cost of Risk
Q3'14
Q4'14
Q1'15
Impairments on other Assets
Comments
Operating expenses grew by 21% q/q and 24% y/y to N33.6bn
Key drivers y/y:
19% increase in personnel expenses due to increase in
the number of staff across branches to ensure effective
customer engagement in the retail segment
Increase in the AMCON surcharge due to increase in
asset base
Increase in branding and communications expenses to
support our retail business
Increase in software maintenance, e-channels
maintenance and communication expenses to improve
service delivery
Naira devaluation and depreciation
Cost to Income Ratio (CIR) improved to 62.2% in Q1'15 from
64.9% in Q4'14 largely driven by revenue uplift. The Bank will
continue to optimize its resource base while growing revenue
Impairment on loans declined by 34% q/q to N3.0bn in Q1'15
from N4.5bn in Q4'14 leading to a 60bps reduction in cost of
risk to 1.0%
The Bank will continue to monitor and improve quality of its
risk assets to minimize impairment loss
Other operating expense includes: Professional fees, Insurance, General administrative expenses, Other premises and equipment costs etc
©2015 ACCESS BANK PLC
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