Access Holdings Plc has moved to calm investor concerns over its decision not to declare dividends for the 2025 financial year, insisting that the temporary suspension was driven by regulatory compliance requirements rather than weak earnings or liquidity constraints.
The clarification came during the Group’s Full Year 2025 Investors and Earnings Call, where management addressed mounting shareholder questions following the company’s strongest financial performance on record.
Despite delivering over ₦1 trillion in profit before tax for the first time in its history, the financial services group was unable to secure the regulatory approvals required to pay dividends for the year ended December 31, 2025.
Management maintained that the Group remains financially strong and strategically positioned for sustained long-term growth, while assuring investors that dividend payments would resume once all prudential and regulatory conditions are fully resolved.
“Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the Board and Management. The nonpayment of dividend for 2025 was not due to earnings weakness or cash flow constraints, but an alignment with regulatory and prudential guidelines,” said Innocent C. Ike, group managing director/chief executive officer, Access Holdings Plc.
The statement comes at a sensitive time for Nigerian banking investors, many of whom depend on annual dividends as a key component of returns amid inflationary pressures and volatile macroeconomic conditions. Analysts say the absence of a dividend declaration from one of the country’s largest banking groups inevitably triggered concern, particularly given the Group’s strong earnings trajectory.
Access Holdings, however, argued that its fundamentals remain intact.
For the 2025 financial year, the Group posted gross earnings of ₦5.53 trillion, representing a 13.3 percent increase year-on-year. The growth was supported by robust net interest income and a sharp rise in non-interest revenue streams.
Fees and commissions surged by 40.9 percent to ₦585.07 billion, reflecting stronger transaction volumes and expanded digital banking activity across its African operations.
Profit before tax rose by 16.2 percent to ₦ 1.01 trillion, crossing the trillion-naira threshold for the first time in the company’s history and reinforcing the scale of the Group’s earnings expansion.
The balance sheet also recorded significant growth. Total assets climbed by 24.2 percent to ₦ 51.56 trillion, driven largely by business expansion, acquisition integration and growing regional operations.
Operational efficiency improved considerably during the year, with the Group’s cost-to-income ratio declining from 56.7 percent to 51.7 percent. Industry observers note that the improvement signals stronger cost discipline and the benefits of operating leverage following the consolidation of subsidiaries acquired in recent years.
Capital buffers also remained above regulatory thresholds. Access Holdings reported a capital adequacy ratio of 18.2 percent at the holding company level, while its flagship banking subsidiary closed the year with a stronger 20.2 percent capital adequacy ratio.
“Our performance in 2025 demonstrates the strength of the franchise and its capacity to generate value for shareholders. Our focus is to ensure that shareholder distributions resume on a sustainable basis once all regulatory conditions are satisfied and the required approvals are obtained,” Ike added.
The Group explained that the dividend issue evolved in two phases during the year.
According to management, dividend recommendations were made at both the half-year and full-year stages in 2025, but approvals were withheld due to separate regulatory considerations.
At the half-year stage, the challenge arose from Section 7.1 of the Central Bank of Nigeria (CBN) guidelines governing financial holding companies. The company stated that this issue has since been resolved following the successful completion of an approved private placement aimed at strengthening capital buffers.
However, a second regulatory issue emerged at year-end under Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA), which imposes limits on investments in foreign banking subsidiaries relative to shareholders’ funds.
To address the issue, regulators granted the Group a twelve-month remediation window.
Access Holdings disclosed that part of its response strategy would involve partial divestments from some foreign banking subsidiaries, although it emphasised that it would retain super-majority ownership positions in those entities.
The development also reflects the increasing regulatory scrutiny facing financial holding companies as African banking groups continue expanding beyond domestic markets.
According to Ike, preserving regulatory confidence remains central to the Group’s operating philosophy.
“Maintaining the confidence of our regulators, depositors and stakeholders is fundamental to our operating philosophy. In line with our long-standing culture of prudence and sound governance, the Board remains committed to balance sheet strength and capital resilience, as the basis for sustainable shareholder distributions,” he said.
The Group further reassured investors that active engagements with regulators and relevant stakeholders are ongoing to ensure full compliance within the stipulated timeframe.
Management pledged to maintain transparent communication with the market as discussions progress, noting that timely disclosures and investor updates would continue throughout the remediation process.
In addition, Access Holdings said it is strengthening both its capital and liquidity buffers to support the eventual restoration of dividend payments once all conditions and approvals are fulfilled.
The assurance appears aimed at preserving investor confidence amid concerns that prolonged dividend suspensions could affect market sentiment toward the stock.
Still, management expressed confidence that the underlying business remains resilient and capable of delivering stronger long-term returns.
“We remain actively engaged with the investment community and focused on resolving the matters raised within the prescribed timeline. Our priority remains delivering sustainable long-term value to shareholders through stronger execution, improved financial performance and disciplined growth. Subject to the successful conclusion of this process and the necessary approvals, our objective is to restore dividend payments on a sustainable basis,” Ike stated.
Concluding, Ike said: “Access Holdings is uniquely positioned to leverage its scale, geographic diversification and strong franchise to deliver resilient earnings growth, stronger returns and enhanced long-term shareholder value.”
