Access Holdings Plc commenced 2025 on a strong financial footing, reporting a 14.7% year-on-year surge in profit after tax for the first quarter, reaching N182.8 billion compared to N159.3 billion in Q1 2024. This impressive growth, despite a challenging economic environment, underscores the group’s robust business model and strategic initiatives. The performance was anchored by a significant increase in top-line figures, particularly in interest and non-interest income streams. However, the accompanying surge in expenses, especially interest expenses, slightly dampened the overall impact on profitability. A closer examination of the financials reveals a complex interplay of factors influencing the group’s bottom line.
A deeper dive into the income statement reveals the dynamics driving Access Holdings’ performance. The group witnessed substantial growth in interest income, soaring by 58.6% to N964.6 billion, fueled by a larger loan book and favorable interest rate movements. However, this was offset by a steeper 71.3% increase in interest expenses to N760.5 billion. This surge in interest expense likely reflects the higher cost of funds in the current economic climate, impacting the net interest income, which declined by 20.1% to N220.2 billion. Despite this contraction, the group demonstrated resilience by bolstering its non-interest income sources. Fees and commission income experienced significant growth, jumping to N174.5 billion, contributing significantly to offsetting the decline in net interest income.
Furthermore, Access Holdings benefited from substantial gains in fair value and foreign exchange, amounting to N214.4 billion, a notable increase compared to the prior year. This gain likely reflects the group’s strategic positioning to capitalize on market volatilities and currency fluctuations. However, this positive impact was partially counterbalanced by a decline in other operating income. On the expense side, the group faced increased personnel costs, rising to N105.6 billion, likely due to inflationary pressures and investments in human capital. Other operating expenses also climbed to N213.8 billion, reflecting the rising cost of doing business. Despite these cost pressures, the group managed to improve its profit before tax to N222.8 billion, showcasing its ability to navigate a challenging operating environment.
While the profit figures present a positive picture, the comprehensive income statement tells a different story. Access Holdings reported a total comprehensive loss of N39.6 billion in Q1 2025, a stark contrast to the substantial gain recorded in the same period of the previous year. This reversal was primarily driven by significant unrealised foreign currency translation differences, a consequence of the volatile exchange rate environment, and a marked decline in the fair value of debt financial instruments. This emphasizes the impact of external factors, particularly currency fluctuations and market valuations, on the group’s overall financial position. It highlights the inherent risks associated with international operations and investments in volatile financial instruments.
Despite the comprehensive loss, the group’s core operations remained robust, reflected in the increased earnings per share, which rose to 488 kobo from 435 kobo in Q1 2024. This signals continued value creation for shareholders, even amidst external pressures. The group’s balance sheet also reflects its strong financial standing. Total assets grew to a substantial N39.1 trillion, driven by significant growth in customer deposits, reaching N23 trillion, indicating continued customer trust and confidence. Furthermore, the group’s loan book expanded to N11 trillion, reflecting its active role in supporting economic activities through lending. Concurrently, total equity attributable to shareholders increased, further strengthening the group’s financial base.
Looking at the broader context, Access Holdings’ Q1 2025 performance builds upon a successful financial year in 2024, where the group reported a profit after tax of N642.2 billion, a 4% increase compared to 2023. This sustained growth trajectory underlines the group’s consistent profitability and its ability to adapt to changing market dynamics. The group’s strategic focus on diversifying income streams, expanding its customer base, and managing operational efficiency has proven crucial in navigating economic uncertainties and delivering value to stakeholders. While the comprehensive loss in Q1 2025 warrants attention, it is important to view it within the context of the group’s overall strong financial performance and the broader economic landscape. The future performance of Access Holdings will likely depend on its ability to manage external risks, particularly currency fluctuations and market volatility, while continuing to strengthen its core operations and drive sustainable growth.
