Access Holdings Plc has crossed the ₦1 trillion profit threshold. But beneath the headline numbers lies a more nuanced story of transformation, risk, and strategic repositioning. Here are ten critical things every investor and market watcher must note.
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The ₦1 Trillion Profit Milestone Is Historically Significant
For the first time in its corporate history, Access Holdings delivered a Profit Before Tax (PBT) of ₦1.007 trillion, a 16.2% year-on-year increase from ₦867 billion in 2024. This places the group firmly among Nigeria’s elite financial institutions capable of crossing the trillion-naira earnings threshold. While the figure is impressive on its face, investors should note that the growth rate of 16.2% — though positive — represents a deceleration relative to the explosive growth recorded in prior years, signalling a maturing earnings cycle rather than an acceleration.
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Impairment Charges More Than Doubled — A Red Flag
Perhaps the single most alarming figure buried in the financials is the 113.4% surge in impairment charges, jumping from ₦245.3 billion in 2024 to ₦523.6 billion in 2025. This means the bank nearly doubled the amount it set aside to cover bad and doubtful loans in just one year. In absolute terms, impairment charges now represent over half the Group’s entire net interest income. This raises serious questions about credit quality, loan book stress, and the true health of the asset portfolio — an area regulators, analysts, and shareholders must scrutinise closely.
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Customer Deposits Surged 53.4% — But the Cost Must Be Watched
Customer deposits rose dramatically from ₦22.5 trillion to ₦34.6 trillion, a 53.4% increase that reflects remarkable deposit mobilisation. This is a vote of confidence by customers and the market. However, this figure warrants caution: rapid deposit growth often comes with higher funding costs. Interestingly, interest expense actually declined marginally by 1.0% to ₦2.19 trillion, suggesting the group managed its cost of funds efficiently. The CASA (Current and Savings Account) base also grew 39.1% to ₦21.7 trillion, which is favourable for managing funding costs going forward.
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The Fair Value and FX Gain Story: Extraordinary, Not Recurring
One of the most striking line items is the 152.5% explosion in fair value and foreign exchange gains, rising from ₦415.8 billion to ₦1.05 trillion. This single line item now accounts for a substantial portion of operating income. The critical concern here is sustainability. FX and fair value gains are largely market-driven and non-recurring in nature. Should naira volatility stabilise or reverse, or should interest rate dynamics shift, this income stream could evaporate sharply, exposing the underlying earnings quality of the institution.
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Return on Equity Declined Despite Record Profits
Here lies one of the most telling contradictions in this report. Despite delivering over ₦1 trillion in pre-tax profit, the after-tax return on average equity (ROAE) actually fell from 21.6% in 2024 to 18.4% in 2025 — a 320 basis point decline. This means shareholders’ capital is generating less return per naira deployed, even as absolute profits grow. The reason is straightforward: shareholders’ funds grew 15% to ₦4.33 trillion, outpacing the rate of return improvement. For equity investors, this dilution of returns is a critical signal that demands attention.
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Cost Efficiency Improved Significantly — A Genuine Bright Spot
The cost-to-income ratio improved meaningfully from 56.7% in 2024 to 51.7% in 2025, a 500 basis point improvement. This is one of the most unambiguously positive developments in the results. Operating expenses grew at only 12.7% while operating income expanded at 23.9%, demonstrating genuine operating leverage. If the group sustains this trajectory and pushes the ratio toward the 45–48% range typical of top-tier African banks, it would represent a structural improvement in profitability that markets should reward.
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Total Assets Crossed ₦51 Trillion — Scale Now Demands Better Returns
Total assets grew 24.2% to ₦51.56 trillion, cementing Access Holdings as one of the largest financial institutions on the African continent by balance sheet size. However, with an ROAA of just 1.6% — down from 1.9% in 2024 — the Group is generating progressively less return per naira of assets deployed. The institution’s own strategic narrative acknowledges this, describing a deliberate shift “from scale to value”. The market will be watching whether management can translate the sheer size of this balance sheet into superior, risk-adjusted returns.
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Net Fees and Commission Income Grew 40.9% — A Strategic Win
The 40.9% growth in Net Fees and Commission Income to ₦585.1 billion is strategically significant and deserves more attention than it typically receives. Unlike interest income, fee-based revenue is capital-light, more predictable, and less sensitive to interest rate cycles. This growth signals that the group’s transactional banking, digital payments, and financial services ecosystem is gaining meaningful traction. The continued scaling of platforms like Hydrogen Payment Services and Oxygen X Finance will be critical to sustaining this momentum and reducing over-reliance on net interest income.
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The Banking Subsidiary Still Contributes 97% of Revenue — Diversification Is Incomplete
For all the strategic language around building a diversified financial services group, the banking subsidiary still accounts for approximately 97% of group revenue. Subsidiaries including Access ARM Pensions and Access Insurance Brokers, while strategically sound, remain marginal contributors. This concentration risk means the group’s fortunes remain tightly coupled to the commercial banking environment. True holding company value — where multiple businesses contribute meaningfully to group earnings — remains a work in progress and a medium-term aspiration rather than a current reality.
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The Macro Tailwind Was Real — But Will It Last Into 2026?
The Group benefited from a significantly improved Nigerian macroeconomic environment in 2025: GDP growth of approximately 3.9%, moderating inflation, FX reserves exceeding US$45 billion, and a NGX All Share Index that rose over 51%. These conditions created a fertile environment for financial institutions. The critical question for 2026 is durability. If inflation re-accelerates, oil revenues disappoint, or FX pressures resurface, the operating environment could tighten materially. Access Holdings’ performance in 2026 will be a true test of institutional resilience — stripped of the exceptional macro tailwind that partly inflated 2025 numbers.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.