Access Holdings Plc reported significant growth in its gross earnings during the first nine months of the year, reaching N3.4 trillion, a notable increase from N1.6 trillion in the same period of the previous year. This remarkable jump represented a 114.5 percent year-on-year increase and was primarily driven by a substantial rise in interest income, which constituted 70 percent of the total gross revenue at N2.4 trillion. Non-interest income also played a pertinent role in this growth, contributing N1 trillion, reflecting an 87.2 percent increase attributed to enhanced transaction volumes across digital and alternative platforms. These results were disclosed in the company’s third-quarter report filed with the Nigerian Exchange Limited, highlighting the robust performance of the firm amid challenging economic conditions.
Despite inflationary pressures, Access Holdings managed to maintain a stable cost-to-income ratio of 60.8 percent. This financial stability allowed the company to demonstrate a strong profit margin, with a profit before tax escalating by 89.6 percent to N558.2 billion and a profit after tax rising 82.8 percent to N457.7 billion. The reporting period showcased Access Holdings’ resilience and effective management strategies through diversified income streams from both its banking and non-banking subsidiaries, effectively cushioning the impact of external economic challenges.
The growth was significantly attributed to strong performances across Access Holdings’ various subsidiaries. Access Bank, being the largest contributor to the group’s earnings, benefited greatly from its operations in Nigeria and across other African nations and the UK. In particular, international operations were noteworthy, producing 54.8 percent of the group’s total profit before tax and achieving an impressive 185.8 percent increase year-on-year. This underlines Access Bank’s commitment to expanding its geographic footprint and improving customer relationship management by providing tailored banking solutions suited to the needs of different regions.
The total assets of Access Holdings surged to N41.1 trillion, marking a growth of 54.0 percent year-to-date, illustrating the company’s expanding operations and market presence. Shareholders’ equity also witnessed an upward trajectory, climbing 51.0 percent to N3.3 trillion. Additionally, customer deposits saw significant growth, rising by 45.4 percent from N15.3 trillion at the end of December 2023 to N22.3 trillion by the third quarter of 2024. This increase indicates strong customer confidence and brand loyalty towards Access Bank and its subsidiaries, contributing to the overall financial health of the group.
In terms of loan disbursement, Access Holdings experienced a growth of 56.2 percent, bringing gross loans and advances to N13.9 trillion. The lending activities were supported by strategic initiatives to enhance service delivery and outreach, particularly within underserved market segments. The organization’s ability to adapt to changing customer needs while maintaining robust risk management frameworks enabled sustained growth in its credit portfolio. This approach not only bolstered Access Bank’s market share but also enhanced its competitive positioning in the banking sector.
Access Holdings’ non-banking subsidiaries also contributed significantly to the overall success of the group. Following its merger with ARM Pensions, Access ARM Pensions now oversees N3.1 trillion in assets under management. Hydrogen Payments saw remarkable growth, processing N27.5 trillion in transactions and increasing its operating profit by 516 percent year-on-year to N5.7 billion. Similarly, Access Insurance Brokers, despite being in its inaugural year, reported a gross written premium of N8.3 billion with a profit before tax of N641 million. New digital ventures like Oxygen X Finance, specializing in lending, added to the group’s diversification and innovation efforts, which are crucial in today’s evolving financial ecosystem, demonstrating Access Holdings’ comprehensive strategy for sustained growth across its business portfolio.
