Access Holdings Plc has bowed to shareholder pressure, pledging to pay an interim dividend of N1 per share in 2025, more than double the 45 kobo interim payout recorded last year.
The commitment was made during the company’s 3rd Annual General Meeting (AGM), held on May 15, 2025, where shareholders had pushed for higher dividends following the bank’s robust 2024 performance.
The Acting Group CEO, Bolaji Agbede, made the promise after several shareholders demanded better returns in the current financial year, citing improved fundamentals and the group’s growing international earnings.
What the shareholders are saying
At the meeting, several shareholders had called for an increase in dividend payout for the 2025 financial year, citing the bank’s strong 2024 performance and expectations of continued momentum in 2025.
Addressing the calls, Agbede stated, “We will be able to do N1 interim dividend, and we will go the extra mile in delivering,” while stressing the sustainability of the bank’s income base across its subsidiaries in Africa and beyond.
If implemented, the N1 interim dividend would represent a 122% increase from the prior year and mark a record interim payout for the bank.
Access Holdings’ interim dividend of 45 kobo paid in 2024 was the highest on record for the Group, according to Nairametrics research.
By comparison, Zenith Bank and GTCO each paid N1 per share in interim dividends—also a record for both institutions—while UBA led the pack with an interim dividend of N1, the highest among the tier-one banks that year.
In terms of earnings performance, Zenith Bank, GTCO, and UBA reported earnings per share of N32.87, N35.44, and N21.73, respectively. Access Holdings, by contrast, posted an EPS of N16.71.
The sharp rise in interim payouts by Nigerian banks in 2024 was largely driven by windfall profits from exchange rate gains following the naira devaluation.
However, it’s important to note that dividend decisions are not solely based on earnings, but also on the composition of profits, particularly the share of cash versus non-cash earnings.
For detailed dividend history by company, visit the Nairametrics Dividend Tracker: https://dividends.nairametrics.com/
Other AGM Matters
Meanwhile, shareholders at the AGM formally approved a final dividend of N2.05 per ordinary share for the 2024 financial year.
- This follows the Board’s earlier announcement on April 16, with the payment made electronically to qualified shareholders on May 15, 2025.
- The N2.05 final dividend brings the total dividend for 2024 to N2.50 per share, including the interim dividend of 45 kobo paid earlier.
- At a current share price of N22, the total dividend implies a yield of 11.36% and a payout ratio of 19.51%, reflecting Access Holdings’ continued effort to return value to investors despite macroeconomic headwinds.
A notable moment during the AGM was the failed attempt to pass a composite resolution on the election and re-election of directors.
The resolution was eventually broken into separate motions, allowing the directors to be voted on individually.
Key numbers
- The N2.05 final dividend translates to a total payout of N109.3 billion.
- Combined with the earlier interim dividend, the total 2024 dividend of N2.50 is consistent with Access Holdings’ dividend policy.
- Over the past five years, the Group has paid a cumulative dividend of N317.2 billion, with an average payout ratio of 23% and a 44.9% CAGR in dividend growth.
Performance snapshot
- Access Holdings reported a profit after tax of N642.2 billion in 2024, up 3.7% from the N619.3 billion posted in 2023.
- The Group also released unaudited Q1 2025 results showing N182.75 billion in post-tax profit, a 14.7% increase year-on-year and already 28.5% of 2024’s full-year profit.
- The combination of strong quarterly results and the CEO’s assurance of a higher interim dividend points to an optimistic earnings trajectory and signals continued shareholder-friendly policies from the bank in 2025.
