Access Holdings Posts Reduced N426.70 Billion Net Profit for 9M 2025
Access Holdings Posts Reduced N426.70 Billion Net Profit for first the nine months of 2025, underscoring its position as one of Nigeria’s most diversified and resilient financial services groups. The company recorded solid topline expansion and balance sheet growth, even as its profitability came under pressure from higher loan impairment charges, lower trading income, and an increased tax burden. For the review period, Access Holdings reported a pre-tax profit of N616.25 billion, representing a 10.4% year-on-year increase, but net profit declined by 3.2% to N426.70 billion, resulting in earnings per share (EPS) of N8.00. The decline in bottom-line performance primarily reflected higher credit provisioning and elevated taxation, which offset gains in core revenue growth and operational efficiency.
The Group demonstrated impressive revenue generation capacity, with interest income rising by 21.1% year-on-year to N2.90 trillion, supported by prudent balance sheet management, increased loan volumes, and improved asset yields. Despite a 6.0% rise in interest expense, the cost of funds declined by 140 basis points to 5.7% from 7.1% in 9M 2024, showing enhanced funding efficiency and effective deposit repricing. As a result, net interest income expanded sharply by 48.9% year-on-year to N1.26 trillion, reinforcing Access Holdings’ ability to sustain strong core banking performance despite market volatility.
Non-interest income also recorded healthy growth, reflecting the Group’s progress in diversifying revenue streams. Fee and commission income increased by 44.3% year-on-year to N475.92 billion, driven by higher transaction volumes, increased digital banking activity, and stronger performance from payments and trade-related services. Additionally, other operating income doubled by 100.4% year-on-year to N140.49 billion, buoyed by dividend income from subsidiaries and substantial recoveries from previously written-off loans. Although trading income fell by 53.4% year-on-year due to subdued exchange rate volatility during the first half of the year, the business segment showed resilience with a remarkable 355.9% quarter-on-quarter rebound in Q3 2025, reflecting improved foreign exchange market activity and bond trading gains.
On the cost front, Access Holdings achieved notable operational improvements. Operating expenses rose modestly by 6.7% year-on-year, a contained increase relative to revenue growth, which drove the cost-to-income ratio down by 616 basis points to 54.6%. This efficiency gain translated into a 37.4% rise in pre-provision operating profit to N965.66 billion, underscoring stronger operating leverage. However, Access Holdings continues to maintain one of the highest operating cost structures among Nigerian banking peers, reflecting its extensive branch network and ongoing investments in technology infrastructure and regional expansion.
The Group’s credit impairment charges surged significantly, rising 141.5% year-on-year to N349.99 billion, largely driven by increased provisioning in the second quarter of 2025. This spike was linked to the exit of forbearance positions under the Central Bank of Nigeria (CBN) framework and the reclassification of certain high-risk exposures. Consequently, the cost of risk rose to 3.7%, compared to 1.9% in 9M 2024, indicating a more cautious approach to loan loss recognition. Despite this, Access Holdings continues to maintain robust asset quality metrics, with diversified exposures and strong risk management practices across its subsidiaries.
The Group’s balance sheet recorded substantial growth, with total assets expanding by 25.8% year-to-date to N52.20 trillion, reflecting continued business momentum. The increase was driven by a 12.2% rise in net loans to N12.89 trillion, a 73.5% increase in interbank placements, and a 32.0% expansion in investment securities to N15.25 trillion, showcasing the Group’s prudent asset diversification strategy. Customer deposits surged 47.0% year-to-date to N33.10 trillion, reinforcing Access Holdings’ strong retail and corporate funding base. The Group also maintained a healthy capital adequacy ratio of 20.03%, well above regulatory requirements, signaling its financial strength and capacity for future growth.
Although bottom-line performance was moderated by higher impairment and tax expenses, the Group’s core operations remain exceptionally strong. The consistent revenue expansion, deposit mobilisation, and enhanced operational efficiency all underscore a resilient business model capable of weathering macroeconomic pressures. Looking ahead, Access Holdings is expected to sustain its growth momentum, driven by its pan-African footprint, digital transformation strategy, and expanding non-banking subsidiaries in asset management, insurance, and payments.
The target price remains N35.16, which represents a 43.8% upside potential based on the stock’s closing price of N24.45 as of 31 October 2025. Accordingly, analysts retain a BUY recommendation on the stock, reflecting confidence in Access Holdings’ earnings potential and long-term strategic direction.
A management conference call is scheduled for Tuesday, November 4th, 2025, at 1400hrs Lagos (0900hrs New York, 1300hrs London, 1500hrs Johannesburg). Please click here to register. SOURCE: CORONATION ASSET MANAGEMENT LIMITED
