Access Holdings Explains Absence of Dividends for 2025
Access Holdings Plc has provided clarity regarding its decision to withhold dividends for the fiscal year ending December 31, 2025. The company stated that it had initially recommended dividends for both the first half and the entire year, but these were not approved by regulatory authorities.
Management Addresses Shareholder Concerns
This clarification emerged during the group’s full-year 2025 investor and earnings conference call, where management responded to shareholder inquiries about the absence of a dividend announcement, particularly in light of the group’s notable revenue growth and enhanced balance sheet positioning.
Regulatory Adjustments Behind Dividend Suspension
Access Holdings clarified that the decision not to distribute dividends for the 2025 financial year is tied to regulatory requirements, not financial performance. The suspension arose from prudent regulatory adjustments that must be addressed before dividends can be paid out. At the half-year mark, the company faced limitations under Section 7.1 of the Central Bank of Nigeria (CBN) Guidelines for Financial Holding Companies, which have since been resolved following the completion of an approved private placement.
Ongoing Compliance with Regulatory Requirements
However, new challenges emerged regarding Article 19(8)(c) of the Bank and Other Financial Institutions Act (BOFIA), which imposes restrictions on investments in foreign bank subsidiaries relative to shareholder funds. Access Holdings has received a 12-month grace period to rectify this situation. The group indicated its intention to maintain a super-majority stake while considering partial divestments from some banking subsidiaries.
Financial Performance Indicators Remain Strong
In fiscal year 2025, Access Holdings demonstrated resilience and diversification, achieving sustainable shareholder returns. The group reported a 13.3% increase in gross profit, reaching N5.53 trillion, due to robust growth in net interest income and a significant 40.9% rise in fees and charges, totaling N585.07 billion. Furthermore, pre-tax profit surged by 16.2% to N1.01 trillion, marking the first time that the figure exceeded N1 trillion in the group’s history.
Commitment to Shareholder Value and Regulatory Compliance
Access Holdings also reported total assets growing by 24.2% to N51.56 trillion, reflecting successful integration of new subsidiaries. Notably, the group’s cost-to-income ratio improved from 56.7% to 51.7%, attributed to effective cost management and operational efficiencies. The capital adequacy ratios remained robust, standing at 18.2% at the holding company level and 20.2% for the banking subsidiary.
Engagement with Stakeholders Continues
In response to the ongoing circumstances, Innocent Ike, Group Managing Director and CEO, asserted the board’s commitment to balancing regulatory compliance with the goal of returning to dividend payments. The company remains focused on reinforcing relationships with regulators, shareholders, and other stakeholders as it diligently works towards aligning with all necessary requirements prior to resuming dividends.
