Table of Contents
Key Points
- Access Holdings' gross earnings surged to N3.4 trillion ($2.07 billion) in the first nine months of 2024, driven by a 114.5% year-on-year increase in interest income.
- The group's profit before tax grew by 89.6% to N558.2 billion ($339.4 million), while total assets rose to N41.1 trillion ($24.99 billion), reinforcing its position as Nigeria's largest bank by assets
- Non-banking subsidiaries, including Access ARM Pensions and Hydrogen Payments, posted great growth.
Access Holdings Plc, led by Nigerian banker and investor Aigboje Aig-Imoukhuede, has reported a significant rise in gross earnings, reaching N3.4 trillion ($2.07 billion) for the first nine months of 2024.
This marks a 114.5-percent year-on-year increase, up from N1.6 trillion ($973.1 million) during the same period in 2023. The strong growth was primarily driven by a surge in interest income and strategic expansion across banking and non-banking subsidiaries.
Interest income fuels strong growth
Access Holdings, the parent company of Access Bank, attributed much of its success to rising interest income, which made up 70 percent of gross revenue, amounting to N2.4 trillion ($1.46 billion). Non-interest income also saw a substantial increase, contributing N1 trillion ($608.1 million) to the group’s revenue, an 87.2-percent rise from the previous year. The increase was largely driven by higher transaction volumes across digital platforms and alternative channels, highlighting the group's successful pivot towards digitalization and financial technology.
The company’s diversified growth strategy has delivered robust results despite inflationary pressures, maintaining a stable cost-to-income ratio of 60.8 percent.
Strong profit growth and asset expansion
Profit before tax surged by 89.6 percent to N558.2 billion ($339.4 million), while profit after tax rose by 82.8 percent to N457.7 billion ($278.3 million). Access Holdings also experienced a substantial 54.0 percent year-to-date increase in total assets, reaching N41.1 trillion ($24.99 billion). Customer deposits saw a significant rise of 45.4 percent, growing to N22.3 trillion ($13.56 billion) by the third quarter of 2024, compared to N15.3 trillion ($9.3 billion) at the end of 2023.
Gross loans and advances grew by 56.2 percent to N13.9 trillion ($8.45 billion), reflecting Access Holdings’ focus on increasing lending across key sectors.
Performance across banking and non-banking subsidiaries
Access Bank, the group’s core banking unit, continued to perform strongly, with both interest and non-interest income contributing to overall growth. The international banking subsidiaries, especially those in the United Kingdom and across Africa, contributed 54.8 percent to the group’s profit before tax, representing a year-on-year increase of 185.8 percent.
Non-banking subsidiaries thrive
Access Holdings’ non-banking subsidiaries also recorded impressive growth. Access ARM Pensions, formed after a merger with ARM Pensions, now manages N3.1 trillion ($1.88 billion) in assets under management. Hydrogen Payments, the group's payments platform, processed N27.5 trillion ($16.72 billion) in transactions, leading to a 516-percent increase in operating profit, which reached N5.7 billion ($3.46 million).
Newer ventures such as Access Insurance Brokers reported strong first-year results, with a gross written premium of N8.3 billion ($5.05 million) and a profit before tax of N641 million ($389.7 thousand). Additionally, Oxygen X Finance, the group's digital lending subsidiary, saw N2.1 billion ($1.28 million) in operating income and N412 million ($250.5 thousand) in profit before tax.
Access Holdings’ impressive financial performance in the first nine months of 2024 positions the company as a key leader in Nigeria's financial sector. Its diversified strategy, focus on digital innovation, and expansion across borders highlight the group’s potential for sustained growth, benefiting shareholders and customers alike.
