Access Holdings Plc has explained why it failed to pay dividends to shareholders for the 2025 financial year despite posting over ₦1 trillion in profit before tax for the first time in its history.
In a statement issued on Thursday, the company said the non-payment of dividends was caused “solely by outstanding regulatory compliance requirements” and not because of weak financial performance.
Earlier, Pinnacle Daily reported that despite Access Holdings’ strong financial performance, the group faced pressure from regulatory fines, legal battles, and rising costs, even as its shareholders recorded lower returns, with earnings per share declining due to an increase in shares.
The group paid ₦1.82 billion in regulatory fines, including a ₦1 billion penalty for breaching financial holding company guidelines, according to Pinnacle Daily’s analysis.
Access Holdings also battled lawsuits valued at about ₦1.05 trillion and faced a governance dispute, with some shareholders calling for leadership changes.
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In its statement on Thursday, the bank said dividend payments remain a priority and would resume once all regulatory conditions and approvals are completed.
It stated that although dividends were proposed at both the half-year and full-year stages in 2025, approvals were delayed because of specific regulatory issues.
According to the company, the earlier challenge linked to Section 7.1 of the Central Bank of Nigeria guidelines for financial holding companies has now been resolved after it completed an approved private placement.
However, it said the remaining issue relates to Section 19(8)(c) of the Banks and Other Financial Institutions Act, which deals with limits on investments in foreign subsidiaries.
“The absence of a dividend declaration despite the strong financial performance and fortress balance sheet was driven solely by outstanding regulatory compliance requirements,” the company said.
Access Holdings added that it has already started taking steps to meet the requirements, including capital optimisation, balance sheet adjustments, and improvements to governance and policy frameworks.
The company also said it is building stronger capital and liquidity buffers to support the future return of dividend payments after regulatory approval is secured.
Despite the dividend setback, the group reported strong financial results for the 2025 financial year.
Gross earnings rose by 13.3 per cent to ₦4.53 trillion, while profit before tax increased by 16.2 per cent to ₦1.01 trillion. Total assets also grew by 24.2 per cent to ₦51.56 trillion.
Access Holdings said its cost-to-income ratio improved to 51.7 per cent from 56.7 percent, while capital adequacy remained strong across the group and its banking subsidiary.
Looking ahead, the company said it expects further improvement in key performance indicators, including return on equity above 20 per cent and return on assets above two per cent.
Management expressed confidence in the group’s ability to continue delivering “predictable earnings, resilient capital, and enhanced long-term shareholder value.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X