Access Holdings Plc has reassured investors of its commitment to sustainable shareholder returns after reporting record earnings for the 2025 financial year, while clarifying why no dividend was paid despite strong profitability and balance sheet growth.
The explanation came during the Group’s Full-Year 2025 Investors and Earnings Call, where management addressed concerns from shareholders over the absence of dividend payments for the year ended December 31, 2025.
According to the company, the temporary suspension of dividends was driven by regulatory and prudential compliance considerations rather than weak earnings performance or liquidity constraints.
Record Profit Growth and Balance Sheet Expansion
Access Holdings reported one of its strongest financial performances to date in 2025, reflecting continued expansion across its banking and non-banking operations.
Key highlights included:
- Gross earnings rising 13.3% to ₦5.53 trillion
- Profit before tax increasing 16.2% to ₦1.01 trillion
- Fees and commissions growing 40.9% to ₦585.07 billion
- Total assets expanding 24.2% to ₦51.56 trillion
The Group also improved operational efficiency, with its cost-to-income ratio declining from 56.7% to 51.7%.
Capital adequacy remained above regulatory thresholds, with the holding company reporting an 18.2% capital adequacy ratio while its flagship banking subsidiary closed the year at 20.2%.
The performance underscores the growing scale of Access Holdings following recent acquisitions and regional expansion initiatives across Africa and other international markets.
Regulatory Constraints Behind Dividend Decision
Speaking during the earnings call, Group Managing Director and Chief Executive Officer Innocent C. Ike said the company remains committed to maintaining its long-standing dividend culture.
“Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the Board and Management,” Ike said.
He explained that the dividend delay stemmed from regulatory alignment issues involving the Central Bank of Nigeria guidelines for financial holding companies and provisions under the Banks and Other Financial Institutions Act (BOFIA).
According to the Group:
- An earlier regulatory issue linked to CBN holding company guidelines has already been resolved following a private placement transaction.
- A second issue relates to limits on investments in foreign banking subsidiaries relative to shareholder funds under BOFIA provisions.
The company disclosed that regulators have granted a 12-month remediation period to address the matter.
As part of the process, Access Holdings plans partial divestments in some foreign banking subsidiaries while retaining majority ownership positions.
Focus on Capital Strength and Long-Term Shareholder Value
Management said the decision reflects a conservative capital management approach designed to preserve regulatory confidence, balance sheet resilience and long-term sustainability.
The Group stated it is strengthening capital and liquidity buffers to support future dividend resumption once all regulatory conditions and approvals are fully satisfied.
“We remain actively engaged with the investment community and focused on resolving the matters raised within the prescribed timeline,” Ike said.
“Our priority remains delivering sustainable long-term value to shareholders through stronger execution, improved financial performance and disciplined growth.”
Investor Confidence and African Banking Expansion
The clarification comes at a time when investors are closely monitoring capital adequacy, cross-border exposure and regulatory compliance among major African financial institutions amid tighter global financial conditions.
Access Holdings has expanded aggressively in recent years through acquisitions and regional diversification, positioning itself as one of Africa’s largest banking groups by assets.
Analysts say the Group’s ability to maintain strong profitability while addressing regulatory requirements will remain critical to investor sentiment, dividend expectations and future valuation performance.
For international investors, the episode also highlights increasing regulatory scrutiny around capital management and foreign subsidiary exposure within Nigeria’s rapidly evolving banking sector.
