Access Holdings reports N867.01bn pre-tax profit for FY 2024

…Proposes N2.50 dividend amid strong lending gains

Access Holdings Plc has published its audited financial statements for the 2024 fiscal year, revealing a pre-tax profit of N867.02 billion, an increase from N729.00 billion recorded the previous year.

Gross earnings rose sharply to N4.878 trillion, almost doubling the N2.594 trillion reported in 2023. After-tax profit stood at N642.22 billion, reflecting a 3.7 per cent uptick from the N619.32 billion declared in the prior year.

The group has proposed a final dividend of N2.05 per ordinary share, bringing the total payout for the 2024 financial year to N2.50 per share. This will be distributed across its 53,317,838,433 issued ordinary shares of 50 kobo each.

Access Holdings closed the year with a solid financial performance, driven primarily by interest income from lending and investments. Interest income accounted for 71 per cent of the group’s gross earnings, marking a 12 per cent year-on-year increase and reaffirming the bank’s commitment to its core business activities.

A breakdown of this interest income reveals that approximately 51 per cent originated from loans issued to customers and other financial institutions, while 47 per cent came from investments in securities such as government and corporate bonds. A marginal portion, just under 2 per cent, was earned from cash balances, which nevertheless recorded nearly 1,000 per cent growth during the year.

However, the bank’s cost of securing and maintaining deposits also rose significantly. More than 88 per cent of its interest expenses stemmed from servicing deposits placed by customers and other financial institutions. Total customer deposits increased by N12 trillion—a 61 per cent rise—bringing total deposits to nearly N32 trillion. While this expansion strengthened the bank’s balance sheet, it also drove up interest expenses.

In total, Access spent 63 per cent of its interest income on interest expenses. Despite this, the group managed to increase its net interest income by 84 per cent to N1.26 trillion, underscoring its ability to earn more from loans and investments than it paid out in deposit interest.

The bank also ramped up its provisions for loan impairments, setting aside N245 billion, compared to N140 billion the previous year. This provision covered potential losses on loans unlikely to be repaid and investments that had depreciated in value.

Beyond interest income, Access Holdings also earned revenue from ancillary sources, though these contributed a smaller portion of total earnings compared to 2023. Fees and commissions made up 10.5 per cent of gross earnings, while fair value and foreign exchange gains accounted for 8.5 per cent. Nevertheless, the actual figures recorded notable growth:

The bank generated N162 billion from credit-related fees, up over 60 per cent from 2023.

Income from account maintenance fees climbed by 87 per cent to N59.8 billion.

These earnings were key drivers of the bank’s non-interest revenue.

The group operates a deposit-heavy balance sheet, with 77 per cent of its total assets in 2024 funded by customer and institutional deposits. This structure is typically advantageous, as deposits are less costly than borrowings, though it also demands prudent liquidity and interest rate risk management.

In a move to reinforce its capital base and comply with the Central Bank of Nigeria’s revised capital requirements, Access Holdings raised N351 billion in July 2024 via a rights issue. Shareholders were offered one new share for every two held, priced at N19.75 per share. After transaction costs, the group added N343 billion to its equity.

This infusion increased its share capital and share premium to N594.90 billion, reflecting a 136.25 per cent surge, and strongly suggesting that Access Holdings is now in line with the CBN’s updated capital regulations.

As of 15 April 2025, Access Holdings’ share price was N21.40, representing a 10.3 per cent decline since the start of the year and a 9 per cent drop since mid-March. It currently ranks 114th on the Nigerian Exchange in terms of year-to-date performance.