October 27, 2025/InvestmentOne Report

The much-awaited financial result for ACCESSCORP s H1:2025 was released last Friday, showing a notable improvement in core business income from the same period in 2024. Accordingly, interest income grew by 38.90% YoY to 2.04trn in the first half of 2025, triggered majorly by the rise in interest earned on loans and advances (+31.11% YoY to NGN1.02trn) and investment securities (+82.30% YoY to NGN857.91bn).

The higher interest income on loans reflects the elevated interest rate environment, as the central bank left benchmark interest rates unchanged all through the period before cutting by 50bps to 27.00% in September. Similarly, interest expense increased by 10.53% YoY to NGN1.06trn, bringing net interest income to NGN984.63bn, representing a 91.79% YoY increase. 

Going forward, we expect earnings to improve by year-end and beyond, supported majorly by higher interest income from loans and securities holdings. Non-interest income is expected to slow down YoY, reflecting lower fair value gains and FX gains amid stable exchange rates.

However, we expect fee and commission income to remain resilient and provide cushion for non-interest income. Furthermore, we highlight that higher cost pressures, which have compressed bottom-line in recent quarters remain a downside risk for the financial institution. Nevertheless, we remain optimistic about stronger earnings potential, underpinned by the just concluded capital raise, which is expected to drive expansion of asset base. Hence, we maintain a STRONG BUY recommendation on the ticker.

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