Access Holdings Profit Crosses N1 Trillion as Impairment Charges Surge 113% to N523 Billion

Key facts

• Access Holdings profit before tax rose 16.2% to N1.01 trillion in FY 2025, the first time above N1 trillion.
• Net impairment charges on financial assets surged 113% to N523.55 billion from N245.32 billion in 2024.
• Total impaired loans increased to N468.04 billion from N368.22 billion, but the impaired loan ratio fell to 2.68% from 2.76%.
• Nine Nigerian banks collectively declared N3.2 trillion in loan loss provisions in 2025, up 40% from N2.33 trillion in 2024.
• The Central Bank of Nigeria required banks to exit regulatory forbearance and align with prudential loan classification standards.
• Access Holdings gross earnings grew 13.3% to N5.53 trillion in FY 2025.
• CEO Innocent C. Ike said the group has completed its expansion phase and will now focus on efficiency and returns.

Record Profit Amid Rising Provisions

a profit before tax of N1.01 trillion for the financial year ended December 31, 2025, crossing the trillion-naira mark for the first time. The figure represents a 16.2 percent increase from the N867.02 billion recorded in 2024. However, the lender’s net impairment charges on financial assets more than doubled, rising 113 percent to N523.55 billion from N245.32 billion a year earlier. Total impaired loans climbed to N468.04 billion from N368.22 billion, though the ratio of impaired loans to gross risk assets improved slightly to 2.68 percent from 2.76 percent, indicating that asset growth outpaced the rise in non-performing exposures.

Regulatory Shift Drives Provisioning Surge

The sharp increase in impairment charges reflects a broader industry trend driven by regulatory changes. The Central Bank of Nigeria directed banks to exit the regulatory forbearance loan window and fully comply with prudential loan classification standards, forcing lenders to set aside larger buffers against potential defaults. Across the sector, nine banks declared a combined N3.2 trillion in loan loss provisions in 2025, a 40 percent jump from the N2.33 trillion recorded in 2024. The banks include Access Holdings, Guaranty Trust Holdings, Wema Bank, Stanbic IBTC Holdings, Ecobank Transnational Incorporated, United Bank for Africa, Zenith Bank, First Holdco, and FCMB Group.

Peer Comparison: Impairment Charges Across the Sector

Among the nine banks, the highest impairment charge in its unaudited results at N748.13 billion, a 75 percent increase from N42.29 billion in 2024. Zenith Bank recorded N742.19 billion, up 12.97 percent from N657 billion. Ecobank Transnational Incorporated posted N707.53 billion, a 47 percent rise from N480.57 billion. United Bank for Africa declared N331.07 billion, up 53 percent from N217 billion. FCMB Group’s impairment charge jumped 109 percent to N86 billion, while Wema Bank’s rose 19 percent to N25.7 billion.

Strategic Pivot: From Expansion to Efficiency

Alongside its financial results, Access Holdings announced a strategic shift in its growth agenda, moving from an expansion-led model to one focused on efficiency, returns, and sustainable value creation. Gross earnings rose 13.3 percent to N5.53 trillion, but the group signaled that building scale is no longer the primary objective. Innocent C. Ike, group chief executive officer, said the expansion phase has largely been completed. “Over the last decade, we deliberately built scale across markets and segments. That phase has largely been achieved,” Ike stated. “Our focus now is on converting that scale into consistent, high-quality value for our shareholders.”

Disciplined Capital Allocation and Cost Efficiency

The next phase of execution will emphasize disciplined capital allocation, improved cost efficiency, and stronger performance across all business lines. Ike noted that in the current environment, size alone is no longer a competitive advantage. “What matters is how effectively that size translates into returns, resilience, and long-term value,” he added. Access Holdings reaffirmed its commitment to optimizing its platform to ensure every segment contributes meaningfully to overall performance. “The platform is in place,” Ike said. “The opportunity now is to make it work harder, smarter, and more efficiently.”

Market and Dividend Implications

The surge in impairment charges has weighed on shareholders’ dividend payouts across the sector. While Access Holdings’ profit before tax crossed the N1 trillion threshold, the higher provisioning costs reduced net income available for distribution. Trading on the Nigerian Exchange Group rose to N287 billion, and the stock market capitalization crossed N150 trillion, but concerns over banking stability persist. Nestoil’s bad debts have been implicated in three banks’ failure to pay dividends, highlighting the ripple effects of asset quality deterioration.

Outlook: Converting Scale into Value

Access Holdings enters 2026 with a clear mandate to improve returns on its expanded platform. The group’s ability to manage credit risk while maintaining earnings growth will be critical as the CBN’s tighter provisioning rules continue to reshape the banking landscape. Ike’s emphasis on efficiency and value creation signals a departure from the rapid expansion that characterized the past decade. Whether the lender can deliver on that promise will depend on its success in translating its N5.53 trillion gross earnings base into higher profitability and shareholder returns.

The bottom line

• Access Holdings became the first profit before tax above N1 trillion, but impairment charges doubled to N523 billion.
• The CBN’s directive to exit regulatory forbearance forced nine banks to set aside N3.2 trillion in loan loss provisions in 2025.
• The impaired loan ratio improved to 2.68% from 2.76%, indicating asset growth outpaced non-performing exposures.
• CEO Innocent C. Ike announced a strategic pivot from expansion to efficiency, focusing on capital allocation and cost discipline.
• Higher provisioning costs are squeezing dividend payouts, with some banks unable to pay dividends due to bad debts.
• Access Holdings’ next challenge is converting its scale into consistent returns and long-term shareholder value.