Access Holdings delivered a strong full-year 2025 performance
Access Holdings delivered a strong full-year 2025 performance (audited), underpinned by robust balance sheet expansion, resilient core earnings, and improved non-interest income, although margin compression and elevated impairment charges moderated overall profitability growth.
Gross earnings rose to N5.53trn, while profit before tax increased by 16.2% y/y toN1.01trn, driven by a combination of higher interest income (+1.9% y/y to N3.55trn) and a significant expansion in tradingincome (+152.5% y/y) and fees and commissions (+40.9% y/y).
However, net interest income declined by 7.0% y/y to N1.36trn,despite a slight easing in funding costs, as interest expense edged down by 1.0% y/y to N2.19trn. Consequently, net interestmargin compressed to 3.9% (vs. 5.4% in FY2024), while cost of funds declined to 5.7%, suggesting some repricing benefits butstill insufficient to offset asset yield pressures.
Operating efficiency improved, as cost-to-income ratio declined to 51.7% from56.7%, despite a 12.7% y/y rise in operating expenses. Profit after tax grew 16.2% y/y to N718.7bn, translating to an EPS ofN13.48, while ROAE moderated to 18.4% (from 21.6% in FY 2024), reflecting both margin pressure and capital expansion.
Asset quality weakened slightly, with cost of risk rising to 4.1% and NPL ratio ticking up to 3.4% due to write offs following theexit from CBN’s forbearance process. On the balance sheet, total assets expanded by 24.2% y/y to N51.6trn, driven by growthin gross loans (+16.4% y/y) and investment securities (+43.7%), while customer deposits surged 53.4% y/y.
No dividend wasdeclared for FY2025, compared to a final dividend of N2.05 per share in FY2024, indicating a more conservative payout stancelikely aimed at supporting capital retention and ongoing pan-African expansion.
Fourth quarter performance was robust, with pre-provision operating profit rising by 36.0% q/q to N565.0bn, driven primarilyby a significant rebound in non-interest income. This was largely underpinned by a sharp increase in trading income (+279.3%q/q), which more than offset the decline in core interest income, as net interest income fell by 63.8% q/q amid weaker yielddynamics.
Operating costs also remained elevated, with expenses rising 33.7% q/q, partially tempering the strength in toplineperformance. Nonetheless, profit before tax increased by 32.2% q/q to N390.9bn, while profit after tax grew by 27.7% q/q toN292.0bn, supported by both strong operating income and manageable tax charges, leading to a solid finish to the year despiteunderlying pressure on core banking margins.
In Q1 2026 (unaudited), the firm delivered a resilient earnings performance despite persistent macro and cost pressures, withprofit before tax rising 22.2% y/y to N272.2bn and profit attributable to shareholders increasing 15.6% y/y to N200.5bn.
This growth was driven primarily by a strong expansion in net interest income, which surged 53.9% y/y to N338.9bn, supported byimproved yields on assets and a significant moderation in interest expense (-26.9% y/y), indicating effective liability repricingand funding optimisation.
Non-interest income was a mixed bag but generally supportive, as fee and commission income rose15.7% y/y, while other income grew sharply by over 300% y/y due to income from other investments and dividends fromsubsidiaries, offsetting a modest increase in trading income (+4.4% y/y).
However, cost pressures remained elevated, withoperating expenses rising 25.3% y/y, leading to only a modestimprovement in cost-to-income ratio to 55.8%.
Asset quality deteriorated materially in the quarter, with loan impairment charges surging 239.0% y/y to N73.8bn, pushing costof risk higher to 2.1% (vs. 0.8% in Q1 2025). Despite this, pre-provision operating profit increased by 41.5% y/y to N346.0bn,demonstrating underlying earnings resilience.
On the balance sheet, total assets grew 3.6% year to date (ytd) to N53.4trn,driven by increases in loans (+1.5% ytd) and investment securities (+3.1% ytd), while customer deposits rose modestly by 1.1%ytd.
While margin compression and rising credit costs remain key headwinds, the Group’s strong revenue generation capacity, improved funding profile, and continued capital build positions it on a path to sustain earnings growth, albeit with profitability ratios likely to remain under pressure in the near term. An eye should however be kept on capital requirements for the pan-African expansion and the level of impairments as the year progresses.
