October 31, 2025/Cordros Report
Access Holdings Plc (ACCESSCORP) recorded a strong rebound in Q3-25, with earnings per share (EPS) rising by 34.6% y/y, reversing the 51.3% y/y decline recorded in H1-25. The recovery was driven by a significant rebound in investment gains and resilient core income. Notably, gains on fixed income securities, which had declined sharply in Q2-25, increased substantially in Q3-25 following the bank’s decision to expand its investment securities portfolio by 36.6% q/q to NGN15.25 trillion. However, on a 9M-25 basis, EPS declined by 35.5% y/y to NGN8.00 (9M-24: NGN12.40), reflecting the impact of earlier earnings pressure in the first half of the year.
Gross earnings rose by 12.8% y/y to NGN3.78 trillion, driven by a 21.1% y/y increase in interest income to NGN2.90 trillion. The growth was underpinned by higher returns on loans to customers (+22.0% y/y to NGN1.38 trillion) and investment securities (+20.3% y/y to NGN1.30 trillion), with the latter benefiting from an enlarged portfolio base. However, income from loans to banks declined by 10.9% y/y, reflecting lower interbank placements.
As expected, funding costs remained elevated, rising by 6.0% y/y to NGN1.65 trillion, primarily due to higher customer deposit costs (+24.6% y/y), which offset reduced costs on deposits from financial institutions (-18.1% y/y). Nonetheless, the group’s net interest income surged by 48.9% y/y to NGN1.26 trillion. Credit impairment charges rose sharply by 141.5% y/y to NGN349.99 billion, reflecting continued loan loss provisioning. Consequently, net interest income ex-LLE grew by 29.7% y/y to NGN907.96 billion.
Non-interest income declined moderately by 8.1% y/y to NGN872.37 billion, as higher net fees and commissions (+44.3% y/y to NGN475.92 billion) and FX gains (+28.5% y/y) partly offset earlier fair value losses recorded in H1-25. The rebound in Q3-25 investment gains (+106.0% y/y) was particularly supportive of this segment, reversing part of the weakness recorded in H1-25. Overall, operating income increased by 8.0% y/y to NGN1.78 trillion.
Operating expenses grew by 6.7% y/y to NGN1.16 trillion, driven by higher personnel costs (+27.1% y/y), AMCON levy (+37.5% y/y), and depreciation expenses (+22.7% y/y), which undermined the moderation in administrative (-51.5% y/y) and IT (-9.2% y/y) costs.
Consequently, profit before tax (PBT) rose by 10.4% y/y to NGN616.25 billion. However, a 68.0% y/y increase in income tax expense to NGN168.70 billion tempered the impact of stronger pre-tax earnings, resulting in a 2.2% y/y decline in PAT to NGN447.55 billlion.
Comment: Access Holdings Plc delivered a resilient performance in 9M-25, supported by sustained interest income growth and a notable rebound in investment securities gains in Q3-25. While cost pressures and elevated credit impairment charges continued to weigh on margins, the group’s expanding balance sheet and increased investment holdings reinforced profitability compared to H1-25. We expect the positive momentum to continue, driven by the still elevated yield environment and earnings assets expansion. Our estimates remain under review.
