Access Holdings Plc may not pay an interim dividend for the first half of 2026, as the group works to resolve a regulatory breach tied to its foreign investments.
This was disclosed during the Group’s earnings call held on May 5, 2026, where insights into its full-year 2025 financial performance were presented.
Under BOFIA Section 19(8)(c), Nigerian banks are not permitted to invest more than 10% of shareholders’ funds in foreign banking subsidiaries.
However, Management disclosed during the call that Access Holdings’ exposure currently stands at about 19.3%, almost double the regulatory threshold.
This development, the Group said, has now become the key hurdle preventing dividend payments despite the bank delivering record profitability in 2025.
What management is saying
In response to a question on why Access Holdings did not pay a dividend for the 2025 financial year, the Group Managing Director/CEO, Mr. Innocent Ike stated that while the group recommended dividends for both half-year and full-year 2025, regulatory approvals were not obtained due to “specific regulatory alignment matters.”
According to him, the earlier half-year 2025 dividend constraint linked to Section 7.1 of the CBN Guidelines for Financial Holding Companies was resolved following the completion of its approved private placement.
However, a fresh issue emerged at the full-year stage relating to the foreign subsidiary investment limit.
- “At full year 2025, a further matter was flagged under BOFIA Section 19(8)(c), which limits investment in foreign banking subsidiaries to 10% of shareholders’ funds.
- “Management has been given a 12-month window to fully remediate this position,” he explained
He added that the bank is currently undertaking “capital optimization initiatives, balance sheet actions, and a review of relevant policies and governance frameworks” to cure the breach.
This suggests that Access Holdings may be unable to declare an H1 2026 interim dividend until regulators are satisfied that the group has reduced its foreign investment exposure back within the allowable threshold.
Aggressive expansion strategy now under scrutiny
The development follows years of aggressive pan-African expansion by Access Bank, which significantly increased the group’s international footprint across Africa and other markets.
Presentation materials from the earnings call showed that international operations now account for:
- 33% of loans
- 23% of shareholders’ funds
- 52% of profit before tax contribution combined with Rest of Africa operations.
The group also disclosed that Nigeria’s contribution to profit before tax declined to 48% in FY 2025, while Rest of Africa and international operations contributed a combined 52%, highlighting how important offshore businesses have become to the group’s earnings diversification strategy.
Management repeatedly emphasized during the call that consolidation of most acquisitions has now been substantially completed, with only Kenya still awaiting final regulatory alignment.
- Foreign subsidiaries largely operate independently, management noted, with local capital structures and separate profitability profiles.
- However, the cumulative capital committed outside Nigeria has now triggered regulatory concerns over concentration and capital allocation.
Strong earnings despite dividend uncertainty
The dividend uncertainty comes despite Access Holdings posting one of its strongest earnings performances on record.
According to its FY 2025 presentation:
- Gross earnings rose 13.3% to N5.53 trillion
- Profit before tax crossed N1 trillion for the first time, rising 16.2% to N1.01 trillion
- Profit after tax increased 15.7% to N743 billion
- Customer deposits surged 53.4% to N34.6 trillion
- Total assets rose 24.2% to N51.6 trillion
However, management acknowledged that margin pressure, elevated impairments, and regulatory capital constraints weighed on returns.
The bank’s impairment charges more than doubled to N523.6 billion in 2025, largely due to the full exit from CBN forbearance exposures.
Management disclosed during the call that most of the problematic oil and gas names under forbearance, including exposures linked to firms such as Nestoil, have now been substantially resolved, with only two names remaining.
Capital position remains strong
Despite the regulatory breach, Access Holdings maintained that its capital position remains strong.
- The group’s Capital Adequacy Ratio stood at 18.3% in FY 2025, while the banking subsidiary’s CAR improved to 21%.
- Management also highlighted that the group completed a N40 billion private placement as part of broader recapitalization and capital optimization efforts.
What you should know
Going forward, investors will be closely watching how quickly Access Holdings can rebalance its foreign exposure, as this will determine the timeline for the resumption of dividend payments
Some other key plans and strategies mentioned were the repatriation of dividends from foreign subsidiaries and potential divestment or restructuring of some foreign holdings.
However, until the 10% foreign investment threshold is cured, uncertainty may remain around interim dividend payments, particularly income-focused shareholders accustomed to Access Holdings’ historically consistent payout profile.
