Access Holdings has posted a pre-tax profit of ₦222.78 billion for the first quarter of 2025, reflecting a year-on-year increase of 9.89%. This rise was propelled by a substantial surge in interest income, which jumped by 58.28% to ₦980.68 billion. However, the bank’s core profitability was dampened by a sharp rise in interest expenses, which soared by 71.32% to ₦760.47 billion, resulting in a 20.13% decline in net interest income to ₦220.21 billion.
Access Holdings was able to retain only 22.45% of its interest income after accounting for funding costs—a figure significantly below its peers. GTCO retained 80.11% of its interest income, while Zenith Bank managed 70.58%, highlighting Access’s relatively high cost of funds. This margin pressure underscores challenges in managing its liabilities amidst a rising interest rate environment.
Nevertheless, the group benefited from a strong showing in non-interest income. A notable increase in fee and commission income, coupled with sizeable fair value and foreign exchange gains, helped stabilise overall earnings. These factors showcased Access Holdings’ diversified income streams, even as higher funding costs squeezed its core lending profitability.
The key growth driver behind the interest income was earnings from loans and advances to customers and banks, which accounted for 63.29% of the total—up from 61% in the same period last year. Interest income from investment securities also saw a marginal rise in its share, contributing 34.14% compared to 33.89% in Q1 2024.
Still, funding expenses exerted considerable pressure. The cost of servicing deposits—both from customers and interbank sources—exceeded ₦696.89 billion, representing an increase of more than 80%. In addition, interest expenses on borrowings and debt securities climbed to ₦63.58 billion.
Where Access Holdings found some relief was in non-interest income. Fee and commission income rose by 55.26% to ₦174.48 billion, with credit-related charges contributing ₦75.52 billion—an increase of 70.11%—and electronic banking income generating ₦48.35 billion, up 44.83%. Meanwhile, gains from fair value changes and foreign exchange transactions surged by nearly 80%, totalling ₦214.39 billion.
Despite a 5.81% drop in total assets, which stood at ₦39.09 trillion at the end of March, the bank retained its position as one of the largest financial institutions by asset size. The contraction stemmed mainly from a reduction in loans, investment securities, and cash balances held with the Central Bank.
Yet, the bank showed resilience in deposit mobilisation. In a quarter marked by tightening liquidity, customer deposits grew by ₦507.56 billion, bringing the total to ₦23.03 trillion. This expansion in the deposit base helped support the balance sheet, despite declines in other areas.