Access Holdings Plc consolidated and separate interim financial statements for the three-month (Q1) period ended March 31, 2025 showed steady profit growth at the group level but continued loss positions at the holding company level.
The results reflect a mix of resilient core banking performance, improved commission income and foreign exchange gains amid increasing cost pressures.
Strong Interest Income Growth But Margin Compression Evident
Access Holdings Plc reported interest income of ₦964.57 billion in Q1 2025, a 58.6% increase from ₦608.10 billion in the same period of 2024.
However, the interest income on financial assets at fair value through profit or loss (FVTPL) dropped significantly to ₦16.10 billion from ₦111.50 billion in Q1 2024, indicating reduced trading gains on financial assets.
Despite robust interest income, interest expenses surged by 71.3% to ₦760.47 billion from ₦443.88 billion in Q1 2024. This was caused by elevated interest rate environments and high cost of funds.
As a result, net interest income declined to ₦220.21 billion, representing a 20.1% drop from the ₦275.72 billion recorded in Q1 2024.
Following an impairment charge of ₦21.77 billion (slightly lower than Q1 2024’s ₦22.79 billion), net interest income after impairment stood at ₦198.44 billion, down 21.6% year-on-year.
Non-Interest Revenue Provides Critical Support
Access Holdings’ net fee and commission income rose by 68.3% year-on-year to ₦146.22 billion from ₦86.86 billion in Q1 2024.
This was supported by stronger transaction volumes and service-related fees, affirming the bank’s diversified income base.
In addition, foreign exchange and fair value gains rose sharply to ₦214.39 billion, up 79.8% from ₦119.23 billion a year earlier on the back of Naira devaluation and market volatility.
Other operating income declined by 44.3% to ₦12.83 billion compared to ₦23.04 billion in Q1 2024. Still, the gains from FX and fees were sufficient to offset the drop and protect overall revenue.
Rising Operating Costs Reflect Inflationary Pressure and Expansion
Access Holdings’ personnel expenses grew by 32.2% to ₦105.56 billion, up from ₦79.85 billion in Q1 2024.
Depreciation and amortization costs also increased to ₦29.78 billion (2024: ₦22.82 billion), indicating continued investments in infrastructure and digital systems.
Other operating expenses rose by 21% to ₦213.76 billion, up from ₦176.64 billion, driven by inflation, regulatory costs, and IT-related expenditures. These cost increases, though expected, put pressure on the bottom line and highlight the need for tighter cost optimization in subsequent quarters.
Profitability Remains Strong at Group Level
Despite cost escalations, Access Holdings posted a profit before tax of ₦222.78 billion, up from ₦202.74 billion in Q1 2024.
After deducting tax expenses of ₦40.03 billion, the group’s net profit stood at ₦182.75 billion, representing a 14.7% year-on-year growth from ₦159.29 billion.
This performance solidifies Access Holdings’ position among Nigeria’s most profitable financial groups and underscores its ability to generate consistent earnings even in a volatile macroeconomic environment.
Holding Company Still in Loss Territory
At the holding company level, Access Holdings Plc (Company) remained in negative operating territory, recording a profit before tax of just ₦4.43 billion with interest expenses of ₦10.26 billion eating into earnings. After tax, net profit was ₦4.23 billion, up from ₦2.74 billion in Q1 2024.
While this shows an improvement from the previous year, the company-level results remain lower than consolidated group numbers and reveal dependency on its banking subsidiaries and the limited operational income at the holding entity level.
Conclusion
Access Holdings Plc delivered a stable Q1 2025 performance, with strong non-interest income and foreign exchange gains offsetting margin compression from high interest expenses.
The bank remains on a solid footing, but elevated costs, particularly at the operating and personnel levels, need to be closely managed to sustain profitability momentum.
The ongoing challenge at the holding company level, where operations continue to rely on intercompany dividends and investment returns, also underscores the importance of optimizing Access Holdings’ group structure and cost efficiency.
The group’s ability to leverage its diversified income base, maintain robust risk management and adapt to economic headwinds will be critical to its full-year 2025 outlook.
