KEY POINTS
- Access Holdings recorded N667.36 billion in profit before tax for the nine months ended September 2026, an 8.29% increase year on year.
- Profit after tax rose 5.95% to N474.17 billion.
- Impairment charges fell 73.45% to N92.91 billion, providing substantial support for earnings.
- Third-quarter profit before tax increased 78.43% from the second quarter but remained 14.35% below the corresponding period of 2025.
- Interest expenses grew faster than interest income, limiting growth in net interest income.
MAIN STORY
Access Holdings Plc recorded an 8.29% increase in profit before tax to N667.36 billion for the nine months ended September 30, 2026, supported by lower impairment charges and growth in interest and fee income.
The financial results, jointly released on November 2, showed that profit before tax increased from N616.25 billion in the corresponding period of 2025. Profit after tax also rose by 5.95% to N474.17 billion from N447.55 billion.
Interest income grew by 6.91% to N3.10 trillion, while fee and commission income increased by 8.40% to N650.87 billion. However, higher funding costs limited the benefit of increased interest income, with net interest income rising by just 2.74% to N1.29 trillion.
A major contributor to the group’s earnings was the reduction in impairment charges, which fell by 73.45% to N92.91 billion from N349.99 billion. This represented a reduction of N257.08 billion in the expense compared with the previous year.
The group’s third-quarter results showed a recovery from the preceding quarter, although earnings remained below the level recorded a year earlier.
Profit before tax rose to N253.23 billion in Q3 2026 from N141.92 billion in Q2, representing a 78.43% quarter-on-quarter increase. However, it was 14.35% lower than the N295.68 billion recorded in Q3 2025.
Profit after tax increased by 313.41% quarter on quarter to N207.45 billion from N50.18 billion, but remained 10.44% below the N231.63 billion recorded in the corresponding quarter of 2025.
The stronger sequential increase in after-tax profit also reflected a lower tax charge. The group’s tax charge declined from N91.74 billion in Q2 to N45.78 billion in Q3.
THE ISSUES
The fall in impairment charges was central to Access Holdings’ nine-month profit growth. The N257.08 billion reduction in impairment expenses helped offset pressure from rising funding costs and operating expenses.
Interest expense increased by 10.09% to N1.81 trillion, exceeding the 6.91% growth in interest income. This meant that the group’s net interest income grew more slowly than its overall interest earnings.
The pressure was also visible in the cost of customer deposits. Interest paid on customer deposits rose to N1.25 trillion from N805.62 billion, while interest earned on customer loans increased to N1.54 trillion from N1.38 trillion.
Fee income provided another source of support. Net fee income increased by 12.40% to N534.94 billion, as fee and commission income rose while related expenses declined to N115.93 billion from N124.49 billion.
However, other income movements were mixed. The group recorded a N138.81 billion fair-value hedge loss and a N19.91 billion loss on financial instruments measured at fair value. A N27.28 billion bargain-purchase gain provided some support.
Operating costs also increased. Personnel expenses rose by 20.51% to N432.12 billion, while other operating expenses grew by 6.03% to N757.26 billion.
The third-quarter comparison also shows that the recovery from Q2 did not fully restore the previous year’s earnings level. Quarterly fee and commission income declined by 23.72% to N215.79 billion, while other operating income fell to N11.61 billion from N49.86 billion.
The group’s total assets stood at N52.60 trillion, up 0.78% from N52.20 trillion a year earlier. Cash and cash equivalents declined by 27.54% to N6.53 trillion, while debt securities and interest-bearing borrowings fell by 37.44% to N2.05 trillion. The latter figure excludes deposits, lease liabilities and Additional Tier 1 capital.
Basic earnings per share increased marginally by 0.25% to N8.02 from N8.00.
MARKET REACTION
Access Holdings shares were unchanged at N28.60 in early trading on November 2, according to the trading information supplied. The price reflects the position during the early trading session, not the market’s closing reaction to the results.
The stock was up 39% year to date but down 5.25% over the preceding month.
Stock market reports also showed that the board did not propose an interim dividend in its half-year directors’ report.
WHAT’S NEXT
Investors will be watching whether Access Holdings can sustain the reduction in impairment charges while managing rising funding and operating costs.
The pace of growth in interest income relative to interest expenses will also remain important, particularly as the group seeks to improve earnings from its lending activities.
BOTTOM LINE
Access Holdings increased its nine-month profit before tax by 8.29%, with lower impairment charges providing significant support. However, rising funding and operating costs, alongside weaker third-quarter earnings compared with 2025, show that the improvement in profitability faces continuing pressures.
