Access Holdings sees 133.5% revenue growth in H1’24 to N2.2trn 

Onome Amuge

Access Holdings Plc, one of Nigeria’s leading financial heavyweights, has proven its mettle yet again by delivering a triple-digit punch to its profitability metrics. In a display of financial fortitude, the group’s gross revenue skyrocketed 133.5 percent year-on-year, from N940 billion in half year 2023 to N2.2 trillion in half year 2024, buoyed by stronger interest and non-interest earnings. 

The financial performance, which speaks volumes about the group’s unwavering resilience, commitment to sustainability and drive to generate long-term value for shareholders, was revealed in the recently released audited financial results for the period ended 30 June 2024.

Access Holdings’ financials made available to Business a.m, reveal an unprecedented growth across all key balance sheet indicators. From its solid banking operations spanning twenty-two markets on four continents to its non-banking subsidiaries including Access Pensions, Hydrogen Payments, and Access Insurance Brokers, the group showcased a level of diversification that is the envy of its peers, ensuring a healthy and robust financial position even in the face of market turbulence.

Access Holdings’ financial prowess was on full display in half year 2024, with total assets swelling to N36.5 trillion and shareholders’ equity rising to an equally impressive N2.8 trillion, representing year to date growth of 37.1 percent and 29.8 percent respectively.

Driven by organic growth and strengthened by the impact of foreign currency-denominated loans, Access Holdings Plc’s customer deposits appreciated 31.3 percent from N15.3 trillion in December 2023 to N20.1 trillion by half year 2024.

Similarly, gross loans and advances soared to N12.3 trillion, a 37.6 percent increase from the previous year-end figure of N8.9 trillion.

Access Holdings’ interest income went into overdrive, blasting past the N1 trillion mark with a 142 percent growth from N606.8 billion in half year 2023 to N1.47 trillion in half year 2024. This was fueled by a combination of risk asset expansion and savvy pricing strategies.

The group also witnessed a 117 percent surge in non-interest income, rising from N333.4 billion in half year 2023 to N723.6 billion by half year 2024.

Access Holdings continued its positive streak with a 108.2 percent jump in profit before tax, skyrocketing from N167.6 billion in half year 2023 to N348.97 billion by half year 2024. The group’s profit after tax followed suit, soaring by an equally impressive 107.7 percent, from N135.4 billion to N281.3 billion over the same period.

The impressive financial performance was further reflected in the group’s earnings per share (EPS), which exploded by 103 percent, shooting up from N3.74 in half year 2023 to N7.58 in half year 2024.

The financials showed that Access Holdings displayed its trademark financial discipline as it maintained a steadfast cost-to-income ratio (CIR) of 60.4 percent in half year 2024, despite a turbulent economic landscape characterised by double-digit inflation and currency devaluation.

The group explained that the increase in operating expenses was primarily from ongoing IT upgrade and integration, double-digit growth in AMCON levy and NDIC premium which increased by 63.1 percent and 37 percent, respectively, and will normalise in the second half of the year, inflation-related cost-of-living adjustments, higher energy expenses, and the currency conversion impact of subsidiaries’ operating costs. 

Access Holdings Plc also demonstrated its unwavering commitment to maximising value for its shareholders, as it announced a robust 45 kobo per share interim dividend for half year 2024, representing a 50 percent increase from the 30 kobo dividend declared in the previous half year.

In a similar upward trajectory, Access Holdings Plc’s banking group showcased its enduring strength and resilience in half year 2024, delivering robust year-on-year growth across all performance metrics, despite the challenging operating environment and the Central Bank of Nigeria’s (CBN) tight monetary policy stance. The banking group’s success was driven by strong contributions from both interest and non-interest income, which together fueled an impressive growth in gross earnings

Notably, the bank’s net interest income was up 131 percent from N232.2 billion in half year 2023 to N536.7 billion in half year 2024. The financials also showed that fees and commissions increased by 94 percent year on year from N119.8 billion to N232.5 billion from higher transaction volumes on Access Bank’s digital channels, credit related fees and card payments.

The banking group subsidiaries were also significant, contributing 55 percent to the group’s Profit Before Tax (PBT), demonstrating the significant impact of their operations and growing importance in driving overall profitability. Year-on-year, their PBT performance grew by 218 percent from N63.3 billion to N201.7 billion.

“As part of our ongoing strategic expansion beyond Nigeria, we have successfully completed the full integration of the merged entities in Zambia and Tanzania operations. These developments not only enhance our presence in key markets but also create significant value by expanding our customer base, strengthening cross-border banking capabilities, and fostering increased operational efficiency across our subsidiaries,” the company noted. 

Access Holdings Plc’s proactive risk management approach in half year 2024 ensured that all regulatory ratios remained well within prescribed limits, keeping its non-performing loan (NPL) ratio at a lean 2.72 percent, well below the regulatory limit of five percent.

The group’s robust capital position was further validated by its Capital Adequacy Ratio (CAR) of 19.8 percent, while loan-to-funding and liquidity ratios both exhibited notable improvements, reaching 63.9 percent and 57.2 percent respectively.

Access Holdings noted  that its non-banking subsidiaries have been on a consistent growth path, with Access Pensions leading the charge with a 162.1 percent increase in Assets Under Management (AUM) from N1.1 trillion in December 2023 to N2.9 trillion in the first half of 2024. The phenomenal growth, the company explained, was powered by organic expansion of its Retirement Savings Account (RSA) base, new pension mandates, and the strategic benefits of the ARM Pensions merger, positioning Access Pensions as a premier pension service provider.

The company stated: “As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts. Furthermore, the operating income for the pension business saw a substantial increase of 190%, climbing from N5.6 billion in H1 2023 to N16.2 billion in H1 2024.”

Access Holdings Plc’s Hydrogen Payments also proved to be a game-changer, delivering 1,871 percent growth in top-line revenue compared to H1 2023. Bolstered by its exceptional performance, the subsidiary processed a 306 percent increase in total payment volume (TPV), reaching N13.8 trillion in H1 2024, a remarkable jump from the N3.4 trillion recorded in H1 2023.

According to the group, 90 percent of the transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria. This is as the platform’s ability to handle large transaction volumes with minimal downtime improved its operational efficiency, contributing to a stronger profit outlook for the group.

Access Holdings Plc’s Access Insurance Brokers subsidiary also made waves, posting an 83 percent increase in gross premiums written and a 60 percent surge in commission income, while gross written premiums jumped from N2.3 billion to N5.9 billion by half year 2024.

In its outlook for the rest of the year, Access Holdings Plc has set its sails towards continued growth, expressing firm confidence in its ability to outpace the impressive performance recorded in the first half of the year as it sails into the second half.

The group noted that its strategic focus on scaling non-banking segments, bolstering its digital presence, and strengthening its foothold in high-growth markets across Africa and beyond will continue to propel its diversification efforts, ensuring a more balanced and sustainable revenue stream that will result in long-term value creation for its shareholders.

Access Holdings Plc, also stated that it is wasting no time in its quest for technological advancement and operational excellence, pressing the fast-forward button on the completion of its technology infrastructure upgrades, which will turbocharge operational efficiency across the group.

This comprehensive technological transformation, the group explained, will not only strengthen its digital capabilities, enabling it to provide top-notch services to its customers, but also drive synergies and cost optimisation throughout the organisation.

“Our strategic focus on non-banking segments, digital expansion, and geographic diversification will continue to create lasting value for shareholders, positioning the group to capitalise on emerging opportunities and sustain growth in the long term,” the group stated.