Access Holdings Plc’s financial report for the first half of 2025 reveals a mixed performance – strong revenue growth but weaker profitability, raising concerns among investors and analysts.
Newsonspot reports that according to its audited H1 2025 results released to the Nigerian Exchange Limited (NGX), the Group’s profit after tax (PAT) dropped sharply by 23.3 percent, falling to ₦215.9 billion from ₦281.3 billion recorded in the same period last year. Profit before tax (PBT) also declined by 8.1 percent to ₦320.6 billion, signaling reduced profitability despite a rise in gross earnings.
While gross earnings climbed by 13.8 percent year-on-year to ₦2.5 trillion, analysts believe the growth was largely driven by inflationary pressures and higher interest rates rather than genuine business expansion.
Even more troubling is the sharp fall in return on average equity (ROAE) – which plunged to 11.4 percent in 2025 from 22.4 percent in 2024. This suggests that Access Bank is generating less value for shareholders despite its expanding asset base.
Although the Group recorded gains in net interest income and moderate growth in fees and commissions, mounting costs and challenging market conditions appear to be eating into profit margins.
The results come at a time when Nigerian banks are facing intense regulatory scrutiny, rising funding costs, and stiff competition in digital banking. Despite Access Holdings’ optimism about its subsidiaries – including ARM Pensions and Hydrogen Payments – the overall picture shows the Group struggling to convert its massive revenues into sustainable profit growth.
Analysts warn that if the profit slump continues, the company’s aggressive expansion strategy could begin to undermine investor confidence.
