Access Holdings Plc reported revenues of N2.2 trillion in its half-year audited financial results for the period ended 30 June 2024 to underscore the company’s continued resilience, sustainable performance and commitment to creating long-term value for shareholders.
The results according to a media statement showed strong performance across all key balance sheet indicators and demonstrates company’s the well-structured, healthy, and diversified financial position.
This is evident in the resilient half year results from the banking franchise operating in 22 markets across four continents and the non-banking subsidiaries including Access Pensions, Hydrogen Payments, and Access Insurance Brokers.
In half year 2024, total assets and shareholders’ equity stood at ₦36.5 trillion and ₦2.8 trillion, respectively. This represents a year to date of growth of 37.1 percent and 29.8 percent respectively. Customer deposits increased by 31.3 percent, from ₦15.3 trillion in December 2023 to ₦20.1 trillion by half year 2024. Gross loans and advances also saw an increase of 37.6 percent, from ₦8.9 trillion in December 2023 to ₦12.3 trillion by half year 2024, arising from organic loan growth and the impact of foreign currency-denominated loans.
Access Holdings reported triple-digit growth across all profitability metrics, with gross revenue rising by 133.5 percent year-on-year, from ₦940 billion in half year 2023 to ₦2.2 trillion in half year 2024. This increase was supported by higher interest and non-interest earnings in the period. Interest income surpassed the ₦1 trillion mark, from the expansion of risk assets and effective pricing, leading to a 142 percent growth from ₦606.8 billion in half year 2023 to ₦1.47 trillion by half year 2024. Non-interest income also grew by 117 percent, rising from ₦333.4 billion in half year 2023 to ₦723.6 billion in half year 2024.
Profit before tax increased by 108.2 prcent year-on-year, from ₦167.6 billion in half year 2023 to ₦348.97 billion in half year 2024, while profit after tax rose by 107.7 percent, from ₦135.4 billion to ₦281.3 billion over the same period. This resulted in a 103 percent growth in earnings per share (EPS), which increased from ₦3.74 in half year 2023 to ₦7.58 in half year 2024.
Cost-to-income ratio (CIR) remained relatively flat at 60.4 percent in half year 2024 despite double digit growth in inflation and devaluation in the same period. Cost to income was moderated as revenue outpaced operating expenses.
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.
To maximise value for shareholders, Access Holdings Plc has declared an interim dividend of 45 kobo per share (half year 2023, 30 Kobo), representing a 50 percent increase in dividend payout.
Banking Group Performance
Despite the challenging operating environment and tight monetary policy stance, Access Banking Group recorded strong year-on-year growth across all performance metrics, with Interest and non-interest income contributed significantly to gross earnings. Net interest income grew by 131 percent from N232.2 billion in half year 2023 to N536.7 billion in half year 2024. Fees and commissions increased by 94 percent year on year from N119.8 billion to N232.5 billion from higher transaction volumes on digital channels, credit related fees and card payments.
It said the banking group subsidiaries contributed 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 the company’s ongoing strategic expansion beyond Nigeria, it reported the successful completion of the full integration of the merged entities in Zambia and Tanzania operations. These developments not only enhance its presence in key markets but also create significant value by expanding customer base, strengthening cross-border banking capabilities, and fostering increased operational efficiency across its subsidiaries.
The company’s pro-active risk management approach ensured that the non-performing loan (NPL) ratio closed at 2.72 percent in half year 2024, below the regulatory threshold of 5 percent. Capital Adequacy Ratio (CAR) remained strong at 19.8 percent while loan-to-funding and liquidity ratios also improved to 63.9 percent and 57.2 percent, respectively.
Non-Banking Subsidiaries
The company’s non-banking subsidiaries also demonstrated a consistent growth trajectory. Access Pensions achieved a remarkable 162.1 percent increase in Assets Under Management (AUM), rising from ₦1.1 trillion in December 2023 to ₦2.9 trillion in the first half of 2024. This growth was driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions. 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 percent, climbing from ₦5.6 billion in H1 2023 to ₦16.2 billion in H1 2024.
Hydrogen Payments achieved a remarkable 1,871 percent growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company. The total payment volume (TPV) processed surged by 306 percent, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023. Notably, 90 percent of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria. The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.
Access Insurance Brokers posted significant growth with an 83 percent increase in gross premiums written and a 60 percent rise in commission income in the first year of operations. Specifically, gross written premiums surged from N2.3 billion to N5.9 billion by half year 2024.
Access Holdings said its agile execution strategy and customer-centric approach position the company as a market leader in Nigeria, while simultaneously enabling it to consolidate market share in existing locations beyond Nigeria and explore opportunities in new geographies under consideration for expansion.
Outlook for H2
Access Holdings expressed confidence that it would surpass the growth momentum achieved in the first half of the year in the second half.
“Our strategic priorities will remain focused on scaling non-banking segments, expanding our digital footprint, and solidifying our presence in high-growth African and international markets. These are geared towards accelerating revenue diversification and ensuring long-term sustainable value creation for our shareholders.
“Furthermore, we are fast-tracking the completion of our technology infrastructure integration and upgrades, which will significantly enhance operational efficiency across the group. This technology transformation will strengthen our digital capabilities, allowing us to deliver superior services to our customers, drive operational synergies, and optimise cost”, it said.
The company stated that its 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.
It also said it was awaiting the Central Bank of Nigeria (CBN) capital verification and the Securities and Exchange Commission (SEC) approval for the allotment of rights after the conclusion of its N351 billion rights issue.
