Executive Summary
Analyst: Qudus Adebara (Research Analyst, DLM Securities)
Access Holdings Plc delivered a solid financial performance for the year ended December 31, 2025, driven by strong growth in non-interest income, particularly trading gains, and significant expansion in its balance sheet.
Profit Before Tax (PBT) increased by 16% YoY to ₦1.01 trillion, while Profit After Tax (PAT) rose by 16% YoY to ₦743.0 billion. However, earnings were moderated by a sharp rise in impairment charges and higher operating expenses.
Total comprehensive income declined significantly due to negative other comprehensive income (OCI), reflecting market volatility and valuation losses on financial assets.
The Group’s balance sheet expanded robustly (+24%), supported by strong growth in customer deposits and investment securities.
Financial Highlights – Statement of Profit or Loss (₦’million, Group)
₦’million FY 2025 FY 2024 YoY %
Interest Income 3,273,511 3,108,148 +5%
Net Interest Income 1,356,891 1,268,028 +7%
Net Interest Income (Post-Impairment) 833,341 1,022,709 -19%
Net Fee & Commission Income 585,068 415,241 +41%
Net Trading & Fair Value Gains 1,049,937 415,804 +152%
Operating Expenses (1,639,078) (1,454,498) +13%
Profit Before Tax 1,007,121 867,021 +16%
Profit After Tax 743,045 642,219 +16%
PAT (Owners) 718,745 618,639 +16%
EPS (Kobo) 1,348 1,671 -19%
Revenue Performance
Access Holdings recorded a diversified revenue mix, with strong contributions from both interest and non-interest income streams.
Key Drivers
Interest Income Growth
- Increased to ₦3.27 trillion (+5% YoY)
- Driven by:
- Loans and advances to customers (₦1.75 trillion)
- Investment securities (₦1.07 trillion combined)
Net Interest Income Expansion
- Grew 7% YoY to ₦1.36 trillion
- Supported by improved asset yields
Non-Interest Income Surge
- Net fee and commission income rose 41% YoY to ₦585.1 billion
- Strong growth in transaction banking and digital channels
Trading and Fair Value Gains
- Jumped 152% YoY to ₦1.05 trillion
- Major earnings driver in FY 2025
Overall, revenue growth was strong and well-diversified, reducing reliance on traditional lending income.
Profitability and Margins
Impairment Pressure
- Net impairment charge rose sharply by 113% YoY to ₦523.6 billion
- Reflects:
- Elevated credit risk environment
- Conservative provisioning stance
Operating Cost Growth
- Operating expenses increased 13% YoY to ₦1.64 trillion
- Driven by:
- Personnel costs (+32% YoY)
- Inflationary pressures
- Technology and expansion investments
Profit After Tax
- PAT increased 16% YoY to ₦743.0 billion
- However, earnings quality impacted by:
- Heavy reliance on trading income
- Rising credit costs
Earnings Per Share
- EPS declined to 1,348 kobo (-19% YoY), likely due to share dilution effects
Other Comprehensive Income Impact
- Total comprehensive income declined significantly to ₦458.6 billion (vs ₦1.10 trillion in 2024)
- Driven by:
- Negative fair value movements on financial assets
- FX-related valuation adjustments
This highlights increased volatility in market-sensitive income components.
Balance Sheet Overview (₦’million, Group)
₦’million Dec 2025 Dec 2024 % Δ
Total Assets 51,556,280 41,498,015 +24%
Total Liabilities 47,230,282 37,737,837 +25%
Total Equity 4,325,998 3,760,178 +15%
Loans to Customers 13,341,190 11,487,710 +16%
Investment Securities 16,305,541 11,343,195 +44%
Customer Deposits 34,562,147 22,524,925 +53%
Cash & Balances 6,229,551 5,220,929 +19%
Interpretation
- Strong asset growth driven by:
- Investment securities (+44%)
- Loan book expansion (+16%)
- Customer deposits surged (+53%), reinforcing:
- Strong franchise and liquidity position
- Equity growth (+15%) supported by retained earnings
- Leverage increased moderately in line with asset expansion
Cash Flow Highlights (₦’million, Group)
₦’million FY 2025 FY 2024
Operating Cash Flow 886,217 (895,474)
Investing Cash Flow 1,460,019 (532,383)
Financing Cash Flow (1,024,801) 2,295,534
Net Change in Cash 1,321,435 867,678
Closing Cash Balance 7,475,657 6,082,190
Key Observations
- Strong recovery in operating cash flow driven by improved working capital
- Significant investment in securities and earning assets
- Financing outflows reflect:
- Debt repayments
- Dividend payments
- Overall liquidity position strengthened
Key Ratios & Indicators (FY 2025)
Metric Performance
Interest Income Growth +5%
Net Interest Income Growth +7%
PBT Growth +16%
PAT Growth +16%
Impairment Growth +113%
Asset Growth +24%
Equity Growth +15%
Deposit Growth +53%
EPS Growth -19%
Strategic Insights
- Strong diversification into non-interest income (trading, fees)
- Rapid deposit mobilization enhances funding advantage
- Significant expansion in investment securities signals treasury-driven strategy
- Elevated impairments highlight tightening credit environment
Strengths
- Strong earnings growth and revenue diversification
- Significant balance sheet expansion
- Robust deposit franchise
- Strong liquidity and capital base
Weaknesses
- High reliance on volatile trading income
- Sharp increase in impairment charges
- Rising operating expenses
- Decline in earnings per share
Opportunities
- Expansion in digital banking and transaction services
- Growth in retail and SME lending
- Optimization of treasury and investment portfolio
- Pan-African expansion strategy
Threats
- Persistent FX volatility
- Rising credit risk environment
- Regulatory tightening
- Inflation-driven cost pressures
Outlook
Near-Term Outlook (12–18 Months)
- Earnings expected to remain supported by:
- High-yield environment
- Strong non-interest income streams
- However:
- Credit costs and impairments may remain elevated
- Market volatility may impact trading income
Medium-Term Outlook (3–5 Years)
Access Holdings is well-positioned to leverage its scale, diversified operations, and strong deposit base to drive sustainable earnings growth, provided asset quality stabilizes and reliance on trading income moderates.
Analyst View
“Access Holdings Plc delivered a strong FY 2025 performance with solid earnings growth and impressive balance sheet expansion. However, rising impairments and increased dependence on trading income raise concerns about earnings sustainability in a volatile macroeconomic environment.”
Conclusion
Access Holdings Plc recorded a resilient FY 2025 performance, marked by strong profit growth and aggressive balance sheet expansion. While core fundamentals remain solid, the quality and sustainability of earnings will depend on improved asset quality, cost control, and stability in financial markets.
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