Access Holdings has reported a pre-tax profit of N222.78 billion for the first quarter of 2025, marking a 9.89% increase compared to the same period last year.
This performance was largely supported by strong growth in interest income, which rose by 58.28% year-on-year to N980.68 billion.
While the bank recorded a surge in interest income in Q1 2025, this was heavily offset by a 71.32% jump in interest expenses to N760.47 billion, shrinking net interest income by over 20% to N220.21 billion.
Access retained just 22.45% of its interest income after funding costs, far below GTCO (80.11%), Zenith Bank (70.58%), highlighting pressure on its cost of funds.
Still, strong non-interest income, driven by fee and commission growth and FX/fair value gains, helped cushion the blow, underlining the group’s diversified earnings base even as funding costs eroded core profitability.
Key highlights Q1 2025 vs. Q1 2024):
- Interest Income: N980.675 billion +58.28% YoY
- Interest Expense: N760.469 billion +71.32% YoY
- Net interest income: N220.206 billion -20.13% YoY
- Net fee and commission income: N146.224 billion +68.35% YoY.
- Fair value/FX gains: N214.392 billion +79.82% YoY
- Earnings per share N4.88 +12.18% YoY
- Loans and advances to customers N10.962 trillion -4.58%.
- Total Assets N39.086 trillion -5.81%.
- Customers’ deposits N23.032 trillion +2.25%.
Insight
Access Holdings’ Q1 2025 performance was largely fueled by strong interest income, which surged by 58.28% year-on-year.
This growth was underpinned by two main sources: income from loans and advances to customers and banks, which made up 63.29% of the total interest income (up from 61% in Q1 2024), and interest income from investment securities, which contributed 34.14%, slightly higher than 33.89% last year.
While these numbers appear impressive, rising interest expenses dulled the shine.
- Funding costs soared, with interest paid on customer and interbank deposits rising over 80% to N696.89 billion.
- Expenses on borrowings and debt instruments also climbed to N63.58 billion.
As a result, net interest income dipped 20.13% to N220.21 billion, reflecting the pressure from higher funding costs.
What kept the bottom line afloat was a robust non-interest income performance. Total fee and commission income rose 55.26% to N174.48 billion, driven largely by:
- Credit-related fees and commissions: N75.52 billion (+70.11%)
- Electronic banking income: N48.35 billion (+44.83%)
Additionally, fair value and foreign exchange gains nearly doubled, reaching N214.39 billion, a significant boost to the bank’s earnings resilience.
Balance sheet review
Despite a 5.81% contraction in total assets to N39.09 trillion, Access Holdings maintained its status as one of the largest banks by asset size.
The drop was primarily due to lower balances in loans, investment securities, and cash with the Central Bank.
However, the bank’s ability to grow its deposit base amid tight liquidity stands out.
Customer deposits rose by N507.56 billion in the quarter alone, reaching N23.03 trillion, providing much-needed balance sheet stability and supporting liquidity ratios.
