Access Holdings Plc has posted a strong financial performance for the year ended 31 December 2024 with its Group profit rising to N642.2 billion amid sustained growth in core banking operations and increased efficiency in asset utilisation.
According to the audited consolidated and separate statement of comprehensive income released by the company, interest income calculated using the effective interest rate grew to N3.11 trillion in 2024 from N1.56 trillion in 2023.
This represents a 98.7 percent increase year-on-year and the increase was driven by improved loan volumes and higher yield on interest-bearing assets.
In addition, interest income on financial assets at fair value through profit or loss (FVTPL) increased to N372.3 billion from N90.1 billion.
However, interest expense also increased to N2.21 trillion, up from N958.99 billion in the prior year. Despite the increase in funding costs, the Group recorded a robust net interest income of N1.27 trillion, a 82.4 percent growth from N695.4 billion in 2023.
After accounting for net impairment charges on financial assets of N245.3 billion, net interest income after impairments stood at N1.02 trillion, compared to N555.8 billion in 2023.
Net fee and commission income more than doubled to N415.2 billion, up from N207.8 billion, while fair value and foreign exchange gains stood at N415.8 billion, although slightly lower than the N628.9 billion recorded in the prior year due to moderating volatility in the foreign exchange market.
Other operating income rose significantly to N459.1 billion from N33.1 billion, indicating substantial gains from non-core banking activities and income diversification efforts.
On the cost side, personnel expenses rose to N381.4 billion from N167.9 billion, while other operating expenses climbed to N960.8 billion from N465.7 billion due to inflationary pressures and expansion-related costs.
Depreciation and amortisation increased to N112.2 billion from N63.9 billion.
Access Holdings also reported a bargain purchase gain of N7.3 billion from the acquisition of subsidiaries, boosting its bottom line.
Profit before tax for the year stood at N867 billion, up from N729 billion in 2023.
After accounting for income tax expenses of N224.8 billion, the Group closed the year with a profit of N642.2 billion, representing a 3.7 percent increase over the N619.3 billion recorded in the previous year.
Outlook
The Group’s results revealed the effectiveness of its diversified business model and its strategic focus on sustainable growth across African and international markets.
The strong topline growth, healthy net interest margin, and rising non-interest income provide a solid base for Access Holdings to deliver enhanced shareholder value in 2025.
Investors will be monitoring the Group’s ability to maintain cost efficiency and sustain credit quality amid ongoing macroeconomic uncertainties and regulatory pressures.
Access Holdings remains well-capitalised and positioned to take advantage of opportunities across its key markets.
