May 4, 2026/Cordros Report
Access Holdings Plc (ACCESSCORP) published their unaudited Q1-26 financials on Friday (May 1), reporting an 18.5% y/y increase in PAT to NGN216.54 billion. The growth in the bottom line was primarily driven by a sizable decline in interest costs (-26.9% y/y) and a 19.1% y/y expansion in non-interest income.
Interest income fell by 8.7% y/y to NGN895.03 billion. The contraction was broad-based, with income from loans to customers declining 26.5% y/y to NGN427.82 billion and income from financial assets at FVOCI declining by 59.1% y/y to NGN67.23 billion. These declines were partially offset by strong growth in income from cash and bank balances (+773.9% y/y to NGN79.25 billion), financial assets at FVPL (+336.5% y/y to NGN70.28 billion), and loans to banks (+23.1% y/y to NGN47.24 billion).
The more significant development was on the funding side. Interest expense declined sharply by 26.9% y/y to NGN556.17 billion, driven by a 58.4% y/y reduction in costs on deposits from financial institutions to NGN103.98 billion and a 13.3% y/y decline in customer deposit costs to NGN387.97 billion, indicating proactive deleveraging efforts and the downward repricing of liabilities. Consequently, NII surged by 53.9% y/y to NGN338.86 billion. Credit impairment charges remained a concern, rising sharply by 239.0% y/y to NGN73.81 billion, reflecting continued provisioning pressure on the loan book and receivables across the group. As a result, net interest income ex-LLE grew at a more measured pace of 33.6% y/y to NGN265.05 billion.
Non-interest income rose by 19.1% y/y to NGN444.68 billion, driven by a rebound in investment securities gains, which swung from a net loss position in Q1-25 to a gain of NGN47.33 billion in Q1-26. This was further supported by higher fees and commission (+15.7% y/y) and improved dividend income from the group’s subsidiaries. Together, these components more than compensated for the lower FX gains (-16.1% y/y), pushing operating income 24.1% y/y higher to NGN709.74 billion.
Overall, gross earnings declined marginally by 1.1% y/y to NGN1.34 trillion, as the larger absolute contraction in interest income more than offset the growth in non-interest income.
Operating expenses rose by 25.3% y/y to NGN437.53 billion, with the AMCON levy more than doubling (+103.5% y/y to NGN79.28 billion). This was further weighed by higher personnel costs (+24.7% y/y), and professional fees (+132.8% y/y). Consequently, the cost to income ratio declined to 55.8% in Q1-26 (Q1-25: 58.8%).
Profit before tax (PBT) increased by 22.2% y/y to NGN272.21 billion, while a 39.1% y/y rise in income tax expense partially diluted earnings growth, resulting in PAT growth of 18.5% y/y.
Comment: While ACCESSCORP recorded bottom line growth, earnings quality remains a concern as profitability remains propped up by highly volatile fair value gains. Additionally, impairment charges rose sharply during the quarter, reflecting not only pressures within the loan book but also provisioning on selected investment securities. Looking ahead, while relatively lower rates are expected to weigh on asset yields, we believe the group’s ongoing deleveraging, improved funding efficiency, and resilient non-interest income profile should continue to underpin profitability. Our estimates remain under review.
