Access Holdings Plc, led by Nigerian banker and investor Aigboje Aig-Imoukhuede, unveiled staggering contingent liabilities totaling N11.3 trillion ($8.47 billion) in its latest annual financial report. This marks a shift from prior practices, providing the first public disclosure of the extent of legal claims and litigation the company faces.
The 2023 audited financial report of Access Holdings shed light on the substantial legal challenges looming over the financial giant. These liabilities far exceed previous estimates, with the company acknowledging being embroiled in two cases as defendants and facing a daunting 265 claims. The total claimed amount against Access Holdings stands at a monumental N11.3 trillion.
Critics have previously expressed concerns that Access Holdings’ historical reporting practices may have obscured the true scale of its legal issues. From 2014 to 2022, the company opted to set aside provisions for potential losses rather than detailing specific legal cases or financial demands from plaintiffs. Analysts argue this approach could have misled investors and stakeholders, falling short of the transparency standards mandated by International Financial Reporting Standards (IFRS).
Access Holdings flexes muscle despite contingent liabilities
Despite the shadow cast by its contingent liabilities, Access Holdings has continued its strategic expansion across Africa’s financial landscape, boasting a presence in 12 African nations and venturing into European markets. The conglomerate operates as a holding company for various financial entities, encompassing banking, asset management, payments, pensions, and insurance.
In a remarkable performance, Access Holdings reported a 307-percent surge in profit after tax for 2023, reaching N619.32 billion ($451.7 million) from N152.2 billion ($111 million) the prior year. This stellar performance extended to total comprehensive income, which skyrocketed to N1.031 trillion ($752 million) from N233.3 billion ($170.17 million) in 2022. The impressive gains were driven by significant increases in both interest and non-interest income, along with substantial net foreign exchange gains.
Access Holdings boasts surging assets, profit
Underscoring its financial strength, Access Holdings Plc saw total assets balloon to N26.69 trillion ($19.47 billion) by year-end 2023, up from N14.99 trillion ($10.93 billion) in 2022. Equity attributable to owners climbed in tandem, reaching N2.11 trillion ($1.54 billion) compared to N1.208 trillion ($881 million) a year earlier.
Buoyed by this robust financial performance, the company’s board proposed a final dividend of N1.80 ($0.00131) per share, a significant increase from the prior year’s N1.30 ($0.00095) per share. (Convert per-share dividend amounts to U.S. dollars only if contextually relevant.)
As Access Holdings navigates ongoing legal challenges while delivering impressive financial growth, stakeholders remain keenly focused on the conglomerate’s risk mitigation strategies and commitment to transparency as it pursues its expansion ambitions.
