November 2, 2026/Cordros Report
Access Holdings Plc (ACCESSCORP) published its unaudited 9M-26 financial results today, reporting a 5.9% y/y increase in profit after tax (PAT) to NGN474.17 billion (9M-25: NGN447.55 billion). The growth was driven by a significant reduction in impairment charges, which outweighed the decline in non core income.
Interest income grew by 6.9% y/y to NGN3.10 trillion (9M-25: NGN2.90 trillion), supported by an 11.5% increase in income from customer loans and a 66.6% rise in income from cash balances. This offset declines of 2.8% in income from investment securities and 4.0% in income from loans to banks. Growth in customer loan income was supported by a 7.4% YTD expansion in the loan book, reflecting improved credit creation during the period.
Interest expense increased at a faster pace, rising by 10.1% y/y to NGN1.81 trillion (9M-25: NGN1.65 trillion), primarily driven by a 54.5% increase in interest on customer deposits to NGN1.25 trillion. This reflected a 6.6% YTD expansion in customer deposits to NGN36.85 trillion, alongside higher deposit pricing, which pushed the cost of customer deposits to 4.6% from 3.9% in 9M-25. The funding mix also weakened, with the CASA ratio declining to 59.9% in 9M-26 (H1-26: 63.7%). These increases more than offset lower interest expenses on deposits from financial institutions (-36.1% y/y to NGN370.48 billion), debt securities issued (-59.3% y/y to NGN37.87 billion) and borrowings (-4.1% y/y to NGN156.15 billion). Despite the higher deposit costs, the overall cost of funds remained unchanged at 5.7%.
Although interest expense grew faster than interest income in percentage terms, the larger absolute increase in interest income lifted net interest income by 2.7% y/y to NGN1.29 trillion (9M-25: NGN1.26 trillion). Earnings were further supported by a 73.5% decline in impairment charges to NGN92.91 billion, which reduced the cost of risk to 0.9% from 3.8% in 9M-25. Consequently, net interest income after loan loss expenses rose by 32.1% y/y to NGN1.20 trillion (9M-25: NGN907.96 billion). However, net interest margin contracted by 40bps to 4.4% from 4.8%, reflecting lower asset yields and rising deposit cost.
Non-interest income declined by 11.8% y/y to NGN769.47 billion (9M-25: NGN872.37 billion), largely due to weaker trading and foreign exchange gains. Net gains on financial instruments at fair value swung from a gain of NGN146.89 billion in 9M-25 to a loss of NGN19.91 billion, while net foreign exchange gains declined by 38.7% y/y to NGN66.51 billion. These collectively undermined the 12.4% y/y increase in net fees and commission income to NGN534.94 billion. Nonetheless, the strong growth in net interest income after loan loss expenses more than offset weaker non-interest income, lifting operating income by 10.6% y/y to NGN1.97 trillion (9M-25: NGN1.78 trillion).
Meanwhile, OPEX expanded by 11.8% y/y to NGN1.30 trillion (9M-25: NGN1.16 trillion), driven by higher personnel (+20.5% y/y), depreciation and amortisation (+22.9% y/y) and professional fees (+110.1% y/y) expenses. Accordingly, the cost-to-income ratio deteriorated to 66.1% from 65.4%.
Overall, profit before tax increased by 8.3% y/y to NGN667.36 billion (9M-25: NGN616.25 billion). However, the 14.5% y/y increase in income tax expense to NGN193.20 billion (9M-25: NGN168.70 billion), with the effective tax rate rising to 28.9% (9M-25: 27.4%), moderated profit after tax growth to 5.9% y/y at NGN474.17 billion (9M-25: NGN447.55 billion).
Comments: ACCESSCORP recorded strong growth in net interest income after loan loss expense, supported by a significant reduction in impairment charges. However, losses on financial instruments, higher fair value hedge losses and rising operating costs weighed on earnings. Looking ahead, lower yields on investment securities and loans and elevated deposit costs are likely to constrain margins, although continued growth in the loan book should provide some support. Additionally, sustained growth in fee income and moderating impairment charges could support near-term earnings. Our estimates are under review.
