Access Holdings Plc closed its 2024 financial year with a robust profit profile, cementing its position among Nigeria’s most aggressive and expansive banking institutions.
The group posted a pre-tax profit of N867.02 billion, a solid 19% increase from the N729.00 billion recorded in the previous year. Although the profit after tax rose marginally by 3.7% to N642.22 billion from N619.32 billion, the group’s ability to deliver growth amid tightening market conditions and rising cost pressures speaks to its scale, aggressive lending drive, and improved investment returns.
The most striking feature of the 2024 performance is the sheer size of gross earnings, which nearly doubled to N4.878 trillion from N2.594 trillion in 2023. This 88% jump is a reflection of both the group’s aggressive expansion in interest-generating assets and the sharp rise in interest rates over the year. Interest income alone surged by more than 110% to N3.48 trillion, meaning that over 71% of the bank’s revenue came from its core business of lending and investing. The contribution of interest income to total gross earnings increased by about 12% year-on-year, underlining Access Holdings’ sustained focus on its primary revenue engine.
A deeper dive into this interest income reveals that about 51% came from loans to customers and other banks, while 47% was derived from investments in securities, including government and corporate bonds. The remaining 2%, although a small proportion, came from cash balances. Interestingly, this segment of the bank’s income grew by nearly 1,000% in 2024, showing how even idle liquidity was efficiently deployed to earn returns, especially amid rising monetary policy rates.
However, Access Holdings also faced a sharp increase in its interest expenses, which rose by 130.7% to N2.212 trillion. Much of this cost, about 88%, was tied to interest payments on customer deposits and borrowings from other financial institutions. The group’s balance sheet shows that deposits from customers climbed steeply, rising by nearly N12 trillion, or 61%, to stand at just under N32 trillion. While this deepened the group’s liquidity base and gave it the firepower to lend and invest, it also meant that Access had to offer higher interest to attract and retain depositors, reflecting the high-rate environment in 2024.
Altogether, the group spent over 63% of its interest income on deposit-related interest expenses. However, it still managed to grow its net interest income to N1.268 trillion, up 82.4% from the previous year. After accounting for impairment charges, which rose 75.8% to N245.32 billion largely due to higher provisions for bad loans and investment losses, net interest income stood at N1.023 trillion—an 84% increase that underscores the group’s capacity to extract value from its core activities even in the face of rising credit risk.
Access Holdings also reported a substantial increase in its non-interest income, although its contribution to overall revenue shrank when measured as a percentage of gross earnings. Fees and commission income contributed about 10.5% of gross earnings, while fair value gains and foreign exchange earnings added another 8.5%. Nonetheless, the absolute figures were significantly higher than those of 2023. The group raked in N162 billion in credit-related fees, marking a 60% jump from the previous year, and earned another N59.8 billion from account maintenance charges, up 87%. These numbers contributed to total fees and commission income of N415.24 billion, nearly doubling year-on-year.
The bank’s balance sheet continues to be driven by a deposit-heavy model, with customer and institutional deposits accounting for 77% of its total assets in 2024. This structure remains a competitive advantage, as deposits typically come at a lower cost compared to wholesale borrowing. However, it also exposes the group to liquidity and interest rate risks, especially if market dynamics push depositors toward alternative investment outlets with better yields. Nonetheless, the group seems to be actively managing these risks, particularly as it prepares to meet the Central Bank of Nigeria’s new capital requirement.
To shore up its capital base, Access Holdings carried out a rights issue in July 2024, raising N351 billion. Existing shareholders were allowed to purchase one new share for every two shares they held at a price of N19.75 per share. After deducting associated costs, the group added N343 billion to its equity, bringing its share capital and premium to N594.903 billion, a 136% rise from the prior year. This capital injection played a major role in strengthening shareholders’ funds, which jumped by 72% to N3.76 trillion.
From a capital adequacy and liquidity standpoint, the group appears well-positioned. Total assets closed the year at N41.50 trillion, a 55.9% growth, while cash and cash equivalents with banks rose by over 70% to N5.22 trillion. Loans and advances to customers also grew strongly by 42.9% to N11.49 trillion, showing that the group remains focused on expanding its credit book despite rising impairments. Retained earnings grew by 60% to N1.14 trillion, reinforcing Access Holdings’ ability to reinvest profits for future growth while still rewarding shareholders.
Shareholders are expected to receive a final dividend of N2.05 per share, taking the total dividend for the 2024 financial year to N2.50 per share. This dividend, when measured against the year’s closing share price, reflects the group’s commitment to shareholder returns, even as its share performance in 2025 has been somewhat underwhelming.
As of April 15, 2025, Access Holdings’ stock was trading at N21.40 per share, down 10.3% since the start of the year and 9% lower compared to mid-March. The company currently ranks 114th on the Nigerian Exchange in terms of year-to-date performance—a surprising decline considering the strength of its earnings. The market reaction suggests that investors may be cautious about rising impairments and the long-term cost of aggressive expansion, especially under a tighter regulatory and monetary environment.
Still, with a diversified revenue stream, a growing balance sheet, a bolstered capital base, and sustained profitability, Access Holdings appears determined to retain its status as a financial powerhouse in Nigeria’s banking sector. Whether the group can maintain this trajectory in 2025 will depend on how effectively it manages risk, curbs impairments, and optimizes returns on its growing pool of assets.
