Access Holdings Plc, one of Nigeria’s largest financial services groups, has released its audited half-year financial results for the period ended June 30, 2025, reporting a pre-tax profit of N320.57 billion — an 8.12% year-on-year decline from N348.92 billion recorded in the corresponding period of 2024.

Post-tax profit also fell by 23.25% to N215.92 billion, compared to N281.33 billion in H1 2024.

Despite the earnings drop, top-line performance remained solid. Gross earnings rose by 13.81% to N2.50 trillion, reflecting the Group’s robust revenue base and diversified operations.

“The financial results for the half year ended June 30, 2025, reflect the resilience of our business model, the diversification of our revenue streams, and the steady progress in executing our five-year strategic plan,” Access Holdings said in its report.

Banking Subsidiary Dominates Performance

The Group’s performance in H1 2025 was largely anchored by its banking subsidiary, which contributed the bulk of profitability, posting a pre-tax profit of N303 billion and a post-tax profit of N199.3 billion.

Interest income remained the key driver of growth, rising by 38.87% year-on-year to N2.04 trillion, representing over 58% of the full-year 2024 total. This growth was underpinned by stronger lending activities and higher yields on investment securities amid Nigeria’s elevated interest rate environment.

Interest income from loans and advances to customers grew by 36% to N944 billion, while earnings from investment securities jumped 46% to N956.56 billion, jointly accounting for over 93% of total interest income. This sharp rise in core earnings highlights the Group’s strategy of leveraging higher rates to maximize returns from its loan book and investments.

Interest Expenses and Impairments Pressure Bottom Line

Interest expenses grew at a slower pace than income, rising 10.53% to N1.10 trillion. Most of this came from customer deposits, which accounted for over 85% of the total. Deposits from customers increased marginally by 1.69% to N22.9 trillion, while deposits from financial institutions fell sharply by 47% to N4.94 trillion, reflecting reduced reliance on short-term institutional funding.

The resulting wide spread between income and expenses drove a 92% surge in net interest income to N984.63 billion. However, the Group faced heavier impairment charges, which rose 87% year-on-year to N230 billion. Loan loss provisions alone soared 240% to N209 billion, reflecting the impact of credit risk adjustments amid a challenging macroeconomic environment marked by inflationary pressures and currency volatility.

Even after accounting for impairments, net interest income after provisions stood at N754.56 billion — almost double last year’s level — reinforcing the Group’s strong core performance despite market headwinds.

Non-Interest Income and Subsidiary Growth

Access Holdings’ non-interest income also remained a bright spot. Fee and commission income grew significantly, driven by robust activity in digital channels and credit-related services. Credit-related fees rose 24% to N114 billion, while channels and e-business income surged 38% to N102 billion, reflecting growing digital adoption among customers.

Beyond the core banking business, the Group’s diversified non-bank subsidiaries delivered standout performances.

Access ARM Pensions recorded a 65.1% rise in pre-tax profit to N13.1 billion. At the same time, Hydrogen Payments — its financial technology arm — reported a 273% increase in pre-tax profit and processed N41.1 trillion in transactions, up 211% year-on-year. Access Insurance Brokers posted a 161% jump in pre-tax profit, with gross written premiums up 125%, while Oxygen X, the Group’s digital lending platform, generated N5.4 billion in revenue and N2.2 billion in profit.

Operating Costs and Market Factors

Despite strong revenue performance, higher operating expenses and a steep decline in fair value and foreign exchange gains weighed on profitability. Fair value and FX gains fell by 89% to N45.94 billion, from N407 billion in H1 2024, reflecting a tougher currency environment and lower revaluation gains.

Total assets rose 2.29% year-on-year to N42.45 trillion, supported by solid liquidity and a growing deposit base. Gross loans and advances to customers stood at N11.15 trillion, a slight 2.9% decline, as the Group adopted a cautious lending stance to preserve asset quality. Cash and cash equivalents rose by 10.09% to N5.75 trillion, highlighting improved liquidity buffers.

• Key Highlights (H1 2025 vs. H1 2024):
• Gross earnings: N2.499 trillion (+13.81% YoY)
• Interest income: N2.044 trillion (+38.87% YoY)
• Interest expenses: N1.060 trillion (+10.53% YoY)
• Net interest income: N983.63 billion (+91.79% YoY)
• EPS: N3.71 (-51.12% YoY)
• Loans and advances: N11.154 trillion (-2.90% YoY)
• Cash and cash equivalents: N5.748 trillion (+10.09% YoY)
• Total assets: N42.447 trillion (+2.29% YoY)
• Customer deposits: N22.905 trillion (+1.69% YoY)

Market Standing and Capital Strength

Access Holdings’ shares closed at N25 per share on Friday, October 24, 2025, representing a modest year-to-date gain of 4.82%. The Group remains one of the most capitalized financial institutions in Nigeria, having met and surpassed the Central Bank’s new recapitalization requirement. Its combined share capital and premium of N594.90 billion comfortably exceed the N500 billion threshold.

While profit dipped due to impairments and weaker FX gains, the strong revenue growth across banking and non-banking operations signals that the Group’s diversification strategy is taking root.

Analysts expect the Group’s continued expansion into payments, insurance, and pensions to buffer against future earnings volatility. The Group’s robust capital position also places it on a strong footing to sustain growth and absorb potential credit shocks in the second half of 2025.

The European Commission said on Friday that Meta Platforms and TikTok breached their obligations under the European Union’s landmark Digital Services Act (DSA) by failing to grant researchers adequate access to public data, and by making content flagging unnecessarily difficult for users.

In its preliminary findings, the EU executive said that Meta’s Facebook and Instagram, along with TikTok, had “burdensome procedures and tools” for researchers requesting access to public data — a requirement seen as central to ensuring transparency and accountability for large online platforms.

“Allowing researchers access to platforms’ data is an essential transparency obligation under the DSA, as it provides public scrutiny into the potential impact of platforms on our physical and mental health,” the Commission said.

The DSA, which came into full effect last year, represents the EU’s most comprehensive effort to regulate Big Tech platforms. It mandates that major digital services take responsibility for moderating illegal and harmful content, reduce systemic risks such as disinformation and addiction, and ensure researchers can independently study the societal impact of their platforms.

The Commission added that Meta failed to provide “a user-friendly and easily accessible mechanism” for flagging illegal content — including child sexual abuse material and terrorist propaganda — on Facebook and Instagram. It said Meta’s content reporting tools were overly complex and contained “deceptive interface designs” that could confuse users or dissuade them from reporting harmful content.

“Such practices can be confusing and dissuading. Meta’s mechanisms to flag and remove illegal content may therefore be ineffective,” the EU executive said.

Meta, in response, pushed back against the Commission’s preliminary assessment.

“We disagree with the suggestion that we breached the DSA,” a Meta spokesperson told Reuters. “We have introduced changes to our content reporting options, appeals process, and data access tools since the DSA came into force and are confident that these solutions match what is required under the law in the EU.”

TikTok also said it was reviewing the findings and reaffirmed its commitment to transparency but raised concerns about conflicting legal obligations under different EU regulations.

“Requirements to ease data safeguards place the DSA and GDPR in direct tension,” a TikTok spokesperson said, referring to the EU’s General Data Protection Regulation (GDPR). “If it is not possible to fully comply with both, we urge regulators to provide clarity on how these obligations should be reconciled.”

The Commission’s report noted that both companies now have the opportunity to examine the findings and take remedial measures to avoid sanctions. The preliminary results do not prejudge the final outcome of the investigation, which remains ongoing.

If confirmed, the breaches could expose Meta and TikTok to fines of up to 6% of their global annual revenue — a penalty that, for Meta, could run into billions of euros.

The DSA’s enforcement powers have placed Big Tech under unprecedented scrutiny in Europe. Regulators have already opened multiple investigations into companies like X (formerly Twitter), Amazon, and Apple over alleged failures to meet transparency and safety standards.

The move signals that the EU is tightening the reins on digital platforms’ control over user data and research access, with regulators viewing transparency as critical in curbing the spread of misinformation, political manipulation, and mental health risks tied to algorithmic content.

Both Meta and TikTok are expected to engage in negotiations with the European Commission in the coming weeks to avoid formal sanctions.

The Financial Action Task Force (FATF), the global body responsible for combating money laundering and terrorist financing, announced on Friday that it has removed Nigeria from its grey list after nearly three years, signaling renewed confidence in Africa’s 4th-largest economy and its financial system.

Nigeria was delisted alongside South Africa, Burkina Faso, and Mozambique, following what FATF described as “significant progress” by the countries in strengthening anti-money laundering (AML) and counter-terrorism financing (CFT) systems. Nigeria and South Africa were added to the grey list in February 2023, Mozambique in October 2022, and Burkina Faso in February 2021.

The decision comes after an on-site assessment confirmed that Nigeria had implemented substantial reforms to address strategic deficiencies identified by the FATF in previous reviews. The global watchdog praised the country’s “sustained political commitment and measurable progress” in improving transparency, monitoring illicit financial flows, and enforcing compliance within its banking and non-banking sectors.

A Turning Point for Nigeria’s Financial System

Nigeria’s removal from the grey list is widely viewed as a crucial step toward restoring investor confidence, reducing transaction costs, and improving the ease of doing business across borders.

Being on the list had complicated Nigeria’s international transactions, as foreign banks and financial institutions imposed heightened due diligence measures, increasing compliance costs for businesses and individuals. The development had also hindered capital inflows, restricted correspondent banking relationships, and slowed foreign direct investment (FDI).

With Friday’s announcement, Nigeria can expect smoother cross-border transactions, faster processing of remittances, and lower compliance costs for international businesses. The country receives around $20 billion in remittances annually, and reducing compliance barriers could boost inflows through formal channels.

Finance Minister Wale Edun welcomed the news, describing it as “a vote of confidence in Nigeria’s reform trajectory.”

“This development reinforces confidence in our economy and the integrity of our monetary and financial systems, signaling to investors and global partners that Nigeria’s institutions are strong, transparent, and internationally trusted,” Edun said in a statement.

“It will ease cross-border transactions, improve capital flows, including foreign direct investment, and strengthen the foundations for rapid and sustainable economic growth and job creation,” he added.

A Long Road to Reform

Nigeria’s removal from the FATF grey list follows a sustained campaign led by the Nigerian Financial Intelligence Unit (NFIU), the Central Bank of Nigeria (CBN), and other regulatory agencies to overhaul compliance and enforcement mechanisms.

Earlier this year, NFIU Chief Executive Officer Hafsat Bakari had projected that Nigeria could exit the list by late 2025, following the approval of the country’s fifth progress report by the FATF. The report, she said, reflected “Nigeria’s concrete and measurable progress in strengthening its AML/CFT framework.”

Bakari emphasized that the approval of the fifth progress report was “a substantial achievement that demonstrates Nigeria’s adherence to international standards and commitment to a more transparent financial environment.”

Over the past two years, Nigerian authorities have tightened oversight of banks, fintechs, and designated non-financial businesses such as real estate agents and casinos. The country has also expanded cooperation between the NFIU, the Economic and Financial Crimes Commission (EFCC), and international partners to track illicit capital flows.

The FATF decision is expected to improve Nigeria’s global financial standing, potentially lowering the country’s risk profile among lenders and boosting the naira through renewed capital inflows. Economists say it could also strengthen the Tinubu administration’s ongoing fiscal and monetary reforms aimed at stabilizing the economy and attracting foreign investment.

Nigeria’s improved compliance rating may particularly benefit sectors that have struggled to attract foreign capital due to reputational concerns, including energy, manufacturing, and financial technology.

Since 2023, the Nigerian government has been working to rebuild confidence in the economy through structural reforms. These include efforts to unify the exchange rate, remove fuel subsidies, and modernize the tax and customs systems.

Analysts believe the FATF delisting could provide a psychological lift for investors and development partners who have been waiting for signs of policy stability and stronger governance.

For Nigeria, the exit from the grey list not only marks the end of a challenging chapter but also a renewed opportunity to position itself as a credible financial hub in Africa.