Access Holdings Reports N209.2bn Q3 Profit

Access Holdings PLC has reported robust financial results for the third quarter (Q3) of 2024, recording a pre-tax profit of N209.2 billion—a 65.01 percent increase over the N126.8 billion posted during the same period last year.

This growth contributed to a nine-month cumulative pre-tax profit of N558.1 billion as of September 30, marking an impressive year-over-year rise of 89.59 percent.

Key to the performance was the bank’s net interest income, which doubled to N331.4 billion from N165.7 billion in the previous year’s third quarter, a 100.01 percent increase. This surge was driven by core banking revenues, primarily from interest income and commissions. Interest income reached N867.6 billion, reflecting a substantial 142.87 percent year-over-year growth, while interest expenses also rose significantly by 115.42 percent, totalling N594.3 billion.

Fee and commission income contributed N150.5 billion, marking an 81.07 percent increase compared to last year, largely bolstered by credit-related fees and income from channel and e-business services, which accounted for N151 billion and N121.1 billion, respectively.

The bank also saw modest gains in fair value and foreign exchange, increasing by 15.43 percent year-over-year. Earnings per share (EPS) for the quarter rose by 50.63 percent, reaching N4.79.

Access Holdings’ balance sheet remains strong, with total assets climbing to N41 trillion as of the end of the quarter, up 53.96 percent from the previous year. This asset growth was fuelled by increased cash holdings, customer loans, and investment securities. Cash balances grew from N2.0 trillion to N4.2 trillion, while customer loans surged, with overdrafts contributing significantly. Investment securities, particularly Treasury bills and federal government bonds, played a crucial role in the asset base, with total debt securities at fair value reaching N6.8 trillion.

Geographically, Nigeria remained the largest contributor to Access Holdings’ gross earnings, with N2.47 trillion. The rest of Africa followed with N752.9 billion, and Europe contributed N38.8 billion. Although European earnings were lower, the region’s pre-tax profits of N185.29 billion outpaced those from Africa, which stood at N143.7 billion. Nigeria maintained the lead in pre-tax earnings, contributing N377.3 billion.

On the liabilities side, Access Holdings reported total liabilities of N3.7 trillion, primarily due to an uptick in deposits from customers and financial institutions. Deposits from customers amounted to N22.8 trillion, with term deposits making up N9.0 trillion and demand deposits comprising N9.3 trillion. Deposits from financial institutions included significant trade obligations to foreign banks, highlighting Access Holdings’ diverse funding base and international exposure.

Access Holdings’ strong performance across multiple revenue streams, geographic segments, and a well-managed asset base highlights its strategic growth trajectory as it seeks to consolidate its position as one of Nigeria’s foremost financial institutions.