May 4, 2026/InvestmentOne Report

The recently released financial report by ACCESSCORP revealed an increase in earnings at the end of 2025. However, this performance was accompanied by a fragile 1.89% YoY rise in interest income to NGN3.55trn despite the higher interest earned on cash and bank balances (+277.40% YoY to NGN248.54bn) and loans and advances (+9.71% YoY to NGN1.35trn). The fragile growth, however, stemmed from the 17.90% YoY decline in interest on investment securities, which resulted from the decrease in the proportion of treasury bills which yields higher than longer term instruments, due to the inverted nature of the Nigerian yield curve.

Meanwhile, interest expense moderated by 1.04% YoY to NGN2.19trn, mostly reflecting lower (-36.86% YoY to NGN602.81bn) interest incurred on deposits from financial institutions following the sharp drop in trade related obligations to foreign banks (NGN553.56bn in FY:2025 vs NGN4.60trn in FY:2024) in the composition of funding from financial institutions. Essentially, net interest income increased by 7.00% YoY to NGN1.36trn. 

Going forward, we envisage higher earnings for FY:2026, which should be supported by better core business and non-interest income. Although interest income started the year slowly in the first quarter (-8.73% YoY), we expect an improvement amid stronger and strategic loan growth in subsequent quarters. For non-interest income, we opine that the bank will maintain the strategy of holding longer term fixed income instruments to take advantage of lower yields later in the year, which should amplify fair value gains.

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