Access Holdings, Nigeria’s largest financial group, posted a record N4.9 trillion in gross earnings for 2024, marking a major milestone in its 35-year journey. But despite the revenue surge—up 88% from the previous year—profit after tax inched up by just 3.7%, revealing a tough year behind the headline numbers.
The bank managed to convert only 13.2% of its earnings into profit, a sharp drop from the previous year’s 24% margin. This stands in stark contrast to its peers in the Big Five, where GTCO, Zenith, UBA, and First Bank posted significantly stronger profit margins—47.4%, 26%, 24.1%, and 21.6%, respectively.
What Dragged Profit Down?
One major pressure point was interest expenses, which soared 130.7% to N2.2 trillion, eating up 63.6% of the total interest income. Rising borrowing costs squeezed the bank’s profitability, even as it aggressively expanded across Africa.
Expansion in Full Gear
Access Holdings went big on continental expansion in 2024:
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Completed acquisitions in Angola, Sierra Leone, Tanzania, and Zambia
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Finalized buyouts in Kenya, Mauritius, and Uganda
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Secured approval to launch operations in Namibia
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Established new arms, including Oxygen, its consumer lending unit, and merged its pensions business with ARM Pensions Manager
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Acquired Megatech Insurance Brokers
CEO Roosevelt Ogbonna said around 70% of the acquisitions were funded using shareholder equity, showing the group’s commitment to sustainable expansion.
Access Holdings, currently valued at N41.5 trillion ($25.9 billion), slipped out of Africa’s top ten banks in 2023 due to the naira’s devaluation. But it’s now targeting a spot among the top five lenders on the continent by 2027, with its sights set on Southern Africa, the most profitable region for banking in Africa.
Financial Highlights
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Net Interest Income: Rose to N1 trillion, up from N555.8 billion
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Loan Loss Provisions: Jumped 75.8%, as high interest rates strained borrowers
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Pre-Tax Profit: Increased 18.9%
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Profit After Tax: N642.2 billion, up from N619.3 billion
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Return on Equity (ROE): Fell to 17.1% from 29.4%
Looking Ahead
To support further expansion, Access Bank plans to raise new capital in two phases through debt sales to development finance institutions and retail investors, with the first tranche expected by June 2025.
As the group sets its sights on continental dominance, its ability to balance rapid growth with stronger margins will be key to climbing back up the African banking leaderboard.
