Access Holdings Slips, Investors React Negatively to Earnings
Access Holdings lost about 9% of its market value over the last seven trading sessions on the Nigerian Exchange (NGX) as investor interest in the financial company waned.
Trading data revealed that Access Bank’s non-operating holdings company closed at N26.50 per share on Friday, down from a 7-day high of N29.50.
The largest Nigerian lender by total assets continues to trade at a low valuation on the Nigerian bourse, lacking a healthy dividend history and a robust profitability track record.
Access Holdings paid its last dividend in 2024 at 2.05 kobo, up from 150 kobo in 2022. The group has not distributed profits in the last 2 years, and investors have been unwinding their positions at a loss.
With the stock trading at a depressed valuation, several equity analysts estimated strong upside for investors, while investors continue to wait for above-average earnings and a revamped dividend policy to boost valuation, both of which remain lacking.
The share price fell 8.81% over 7 days on the Nigerian stock market trading platform to N26.9 on Friday, from N29.50, as investors adjusted positions.
The market value of Access Holdings Plc.’s 54.375 billion outstanding shares fell to N1.462 trillion, according to data from the Nigerian Exchange.
This amount is more than 25% below its all-time high. Access Holdings Plc has N4.486 trillion in net assets, while its market cap is less than N1.5 trillion, suggesting the market is significantly underpricing its assets.
The risk is that a top bank trading this cheaply becomes an attractive acquisition target for larger, healthier banks that can buy its assets at a steep discount and strip out duplicate operating costs.
Access Holdings Plc recorded a 5.95% year-on-year increase in profit after tax to N474.17 billion in 9 months of financial year 2026, supported largely by a significant reduction in impairment charges, despite weaker operating income and rising expenses.
The group’s gross earnings rose 2.28% to N3.99 trillion, while net interest income grew a modest 2.74% to N1.29 trillion, as interest expenses rose 10.09% to N1.81 trillion, outpacing the 6.91% rise in interest income.
Access Holdings’ earnings results revealed that the group’s net fees and commissions provided some support, advancing 12.40% to N534.94 billion, while other operating income rose 14.36% to N160.66 billion.
Analysts noted that net foreign exchange gains and fair value hedge income fell 73.96% to N66.51 billion, reducing operating income by 3.21% to N2.06 trillion.
Operating expenses climbed 11.81% to N1.30 trillion, driven by a 20.51% increase in staff costs and a 22.90% rise in depreciation and amortisation.
Consequently, profit before impairment charges and tax fell 21.32% to N760.27 billion, while the cost-to-income ratio deteriorated to 63% from 55%.
Nevertheless, loan provisions and impairment charges fell 73.45% to N92.91 billion, lifting profit before tax by 8.29% to N667.36 billion. The results showed higher income tax expense, which rose 14.52% to N193.20 billion, moderating net earnings growth.
The balance sheet expanded modestly, with total assets rising 1.73% to N52.60 trillion from December 2025. Loans and advances rose 4.53% to N16.98 trillion, while investment securities declined 2.83% to N15.84 trillion.
According to Cowry Asset Securities Limited, Access Holdings’ managed funds expanded 6.92% to N40.94 trillion, indicating growth in the group’s funding base, although borrowed funds fell 30.43% to N2.05 trillion.
Its unaudited financials showed shareholders’ equity remained broadly stable at N4.49 trillion, up 0.17%, while total liabilities rose 1.88% to N48.12 trillion.
Analysts said asset quality indicators improved, with the loan loss provision ratio declining to 0.5% from 2.2%, while the loan-to-deposit ratio eased to 41.5% from 42.4%.
“The reduction in impairment charges and borrowed funds is positive, but weak net interest income growth, alongside rising operating costs, suggests the group still struggles to translate its expanding balance sheet into stronger operating returns.
“The modest 0.25% increase in earnings per share to N8.02 and the decline in return on assets to 0.82% indicate that earnings growth remains relatively subdued.
“The sharp reduction in impairment charges has helped support the bottom line, while deteriorating cost efficiency and weaker operating income remain key concerns”, Cowry Asset Limited said in its review.
#Access Holdings Slips, Investors React Negatively to Earnings# Access Holdings Loses 6% of Market Value as Bears Strike
