Access Holdings Plc demonstrated robust financial performance in the fiscal year 2024, reporting a profit after tax of N642.2 billion, a modest 4% increase compared to N619.3 billion in 2023. This positive outcome, achieved despite increased operating expenses and a substantial rise in income tax expenses, underscores the group’s resilience and diversified revenue streams. The impressive 88% surge in gross earnings to N4.88 trillion from N2.59 trillion in the preceding year further bolsters this narrative. This significant growth can be attributed to the group’s strategic expansion and successful penetration of various market segments. While the growth in profit after tax was moderate, the substantial increase in gross earnings lays a strong foundation for future profitability, provided operating expenses and tax liabilities are managed effectively.
The financial results reveal a mixed performance across different metrics. Profit before tax experienced a healthy 19% growth, reaching N867.0 billion compared to N729.0 billion in 2023. However, the surge in income tax expenses, escalating from N109.7 billion to N224.8 billion, significantly moderated the overall profit after tax growth. This substantial tax burden highlights the impact of fiscal policies on the group’s profitability and underscores the need for strategic tax planning. Despite the tax pressures, the total comprehensive income displayed a strong 20% increase, rising to N1.24 trillion from N1.03 trillion. This positive trajectory reflects the group’s ability to generate comprehensive income beyond its core operations, showcasing a diversified and resilient business model.
A closer look at the earnings per share (EPS) reveals a slight decline to 1,671 kobo from 1,723 kobo in 2023. This marginal dip can be attributed to a dilution effect, likely stemming from the issuance of new shares or other equity-related activities. However, the profit attributable to equity holders of the parent company experienced a slight uptick, reaching N618.6 billion compared to N612.5 billion in the previous year. This increase, while modest, indicates sustained profitability for the core shareholders. Furthermore, the profit attributable to non-controlling interests witnessed a substantial jump to N23.6 billion from N6.8 billion. This significant growth reflects improved performance across the group’s subsidiaries and other associated entities, demonstrating the success of the group’s diversified portfolio approach.
Access Holdings further solidified its strong financial position with a substantial expansion of its balance sheet. Total assets grew by an impressive 56%, reaching N41.5 trillion in 2024, up from N26.7 trillion in 2023. This growth was primarily fueled by a 47% increase in loans and advances to customers, reaching N11.5 trillion compared to N8.0 trillion in 2023. This significant expansion of the loan portfolio reflects the group’s proactive approach to lending and its confidence in the market. Concurrently, customer deposits also witnessed a robust 47% growth, soaring to N22.5 trillion in 2024 from N15.3 trillion in the previous year. This substantial increase in deposits underscores the growing trust and confidence customers place in Access Holdings, further solidifying its position as a leading financial institution.
Despite the significant expansion of its loan portfolio, Access Holdings maintained a commendable level of asset quality. The ratio of impaired loans to gross risk assets stood at 2.76%, marginally improving from 2.78% in 2023. This minimal increase in impaired loans despite the significant loan book growth demonstrates the efficacy of the group’s risk management practices and its prudent lending strategies. The group’s proactive approach to risk assessment and mitigation is crucial in maintaining a healthy financial position and ensuring sustainable growth. Furthermore, the group strengthened its capital base, with total equity attributable to equity holders of the parent company increasing to N3.36 trillion from N2.08 trillion. This substantial increase in equity further reinforces the group’s financial stability and provides a strong foundation for future growth and expansion.
In conclusion, Access Holdings’ 2024 financial performance presents a picture of robust growth, strong asset quality, and a healthy capital position. The impressive surge in gross earnings and the growth in total assets and customer deposits highlight the group’s expanding market reach and increasing customer confidence. While the impact of increased tax expenses moderated the growth in profit after tax, the overall financial performance demonstrates the group’s resilience and strategic positioning for future success. However, it’s important to note the reported delay in filing the audited results. While the delay has been attributed to regulatory approval from the Central Bank of Nigeria, it necessitates careful monitoring to ensure full transparency and compliance with regulatory requirements. This transparency is crucial for maintaining investor confidence and ensuring the long-term stability of the financial institution.
