Access Holdings Achieves 1 Trillion Naira Profit Amid Rising Impairment Charges
Access Holdings has reported a pre-tax profit exceeding 1 trillion Naira for the first time, totaling 1.001 trillion Naira for the financial year ending December 31, 2025. This marks a notable 16.2% increase from the previous year’s profit of N867.02 billion, as disclosed in the financial statements released by the Nigeria Exchange Group (NGX).
This financial milestone comes at a time when the banking sector faces new challenges, with nine banks reporting a cumulative N3.2 trillion in loan loss provisions for the fiscal year. The increase in provisioning is attributed to stricter regulations imposed by the Central Bank of Nigeria (CBN), aimed at de-risking financial assets, which has had a corresponding negative impact on shareholder dividend payouts.
Despite the impressive profit figures, Access Holdings experienced a significant increase in its net impairment charge on financial assets, which climbed to N523 billion from N245 billion in 2024. The total impaired loans rose from N368.22 billion to N468.04 billion. Interestingly, the impaired loans to total risk assets ratio improved slightly, decreasing from 2.76% to 2.68%, suggesting the growth in overall assets outpaced the increase in non-performing loans.
The regulatory pressures in fiscal year 2025 compelled banks to adhere to revised prudential loan classification standards, ending the previous regulatory moratorium. Among the nine banks analyzed, which include prominent names such as Guaranty Trust Holdings Plc (GTCO), Wema Bank Plc, and Zenith Bank Plc, most reported heightened impairment charges. Zenith Bank’s impairment surged to N742.19 billion, marking a 12.97% increase from the N657 billion reported in 2024. Meanwhile, FCMB Group’s unaudited figures showed an alarming rise in impairment charges to N748.13 billion, a drastic increase of 75% from the N42.29 billion reported the previous year.
Access Holdings itself declared a markedly higher impairment charge of N523.55 billion, representing a 113% jump from 2024. In comparison, United Bank for Africa (UBA) reported a 53% rise in its impairment charges, totaling N331.07 billion, while Ecobank Transnational Incorporated (ETI) recorded an increase of 47%, amounting to N707.53 billion for the fiscal year.
Despite the overall increase in impairment charges across the sector, a positive trend was noted for GTCO and Stanbic IBTC Holdings, both of which reported reductions in their respective impairment figures. GTCO’s impairment charges rose only to N66.42 billion in 2025 from N136.66 billion in 2024, a noteworthy improvement, while Stanbic IBTC Holdings recorded a dramatic decrease of 86%, showcasing its solid position in a challenging environment.
Analysts attribute the surge in impairment charges to prevailing economic headwinds, including elevated inflation and currency fluctuations. David Adonoli, Vice President of HiCap Securities, noted that while the Nigerian economy shows signs of recovery, the banking sector must remain vigilant in addressing non-performing loans and their related risks. As lending increases, especially due to the CBN’s deposit-to-deposit ratio policy, banks must prepare for potential uncertainties while maintaining robust governance structures.
In its financial performance summary, Access Holdings underscored its transition from a growth model focused on scale to one centered on value creation and operational efficiency. The Group experienced a substantial increase in profit after tax, rising to N743.05 billion, alongside significant growth in net interest income and commissions. Enhanced cost discipline allowed a reduction in the cost-to-income ratio from 56.7% to 51.7%. With a strong balance sheet reflecting a 24.3% rise in total assets to N51.57 trillion and a 53.4% surge in customer deposits, Access Holdings is uniquely positioned to capitalize on the evolving macroeconomic landscape.
