Access Holdings Plc has reported a decline in profit for the half year ended June 30, 2025 as rising impairment charges and lower trading income offset robust growth in interest earnings.
The group’s audited financial results released on Thursday showed profit before tax (PBT) declined by 8.1 percent to ₦320.6 billion, compared to ₦348.9 billion in the corresponding period of 2024, while profit after tax (PAT) fell by 23.3 percent to ₦215.9 billion from ₦281.3 billion a year earlier.
Despite the drop in profitability, gross earnings rose by 13.8 percent year-on-year to ₦2.5 trillion, driven primarily by higher interest income. The bank’s interest income jumped by 38.9 percent to ₦2.04 trillion from ₦1.47 trillion.
However, the group’s bottom line was impacted by a sharp rise in loan impairment charges, which surged by 87.4 percent to ₦230.1 billion compared to ₦122.7 billion in the same period last year.
The spike in provisions suggests heightened credit risk in the lending portfolio amid persistent macroeconomic pressures.
Access Holdings also reported a decline in other income, which fell by 71 percent to ₦137.1 billion from ₦472.7 billion in H1 2024, due mainly to lower trading and revaluation gains.
The drop in non-interest income offset the strong improvement in net interest margins, keeping overall profit growth subdued.
Meanwhile, net interest income rose by 91.8 percent year-on-year to ₦984.6 billion from ₦513.4 billion, supported by the group’s expanding loan book and improved pricing strategy. Net fees and commission income also grew by 16.1 percent on increased transaction volumes and stronger digital engagement across subsidiaries to ₦237.7 billion.
Operating expenses increased by 12.5 percent to ₦808.8 billion, consistent with inflationary trends and the group’s continued expansion in key African markets.
The cost-to-income ratio improved slightly to 59.5 percent, compared to 60.4 percent in the previous period, indicating moderate cost efficiency gains despite a challenging environment.
On the balance sheet, Access Holdings maintained strong fundamentals. Total assets grew by 2.3 percent to ₦42.45 trillion from ₦41.50 trillion as of December 2024.
Customer deposits rose by 1.7 percent to ₦22.90 trillion, while loans and advances increased slightly by 1.1 percent to ₦13.21 trillion, underscoring the group’s cautious risk approach.
Shareholders’ funds also rose by 2 percent to ₦3.83 trillion, reflecting retained earnings and improved capital adequacy.
Performance across business segments remained mixed. The banking group recorded a profit before tax of ₦303 billion and profit after tax of ₦199.3 billion, contributing 65 percent to the group’s total earnings. Non-banking subsidiaries, however, continued to strengthen their presence.
Access ARM Pensions delivered a 29.9 percent increase in revenue to ₦21 billion and a 65.1 percent rise in profit before tax to ₦13.1 billion, achieving a return on average equity (ROAE) of 48.1 percent.
Hydrogen Payments reported 40.5 percent growth in revenue and a 273 percent surge in PBT, processing transactions worth ₦41.1 trillion in H1 2025, compared to ₦13.8 trillion a year earlier.
Access Insurance Brokers and Oxygen X, the group’s digital lending platform, also recorded triple-digit growth, highlighting the success of Access Holdings’ diversification drive.
Key ratios revealed a decline in profitability metrics, with return on average equity (ROAE) falling to 11.4 percent from 22.4 percent and return on average assets (ROAA) dropping to 1.0 percent from 2.0 percent.
The non-performing loan (NPL) ratio, however, improved slightly to 2.68 percent, from 2.76 percent, reflecting sustained credit quality.
Commenting on the results, the Group said its performance reflects the “resilience of our business model, the diversification of our revenue streams, and steady execution of our strategic plan.” It added that the focus remains on scaling transaction-led income, deepening non-banking operations, and maintaining strong governance and risk management standards.
Access Holdings reiterated its commitment to building a more agile and diversified financial services group capable of delivering consistent value to shareholders.
The company said it will continue to pursue growth across pensions, payments, insurance, and digital lending to reduce exposure to earnings volatility from the core banking business.
