BY NKECHI NAECHE-ESEZOBOR— Access Holdings Plc on Thursday reaffirmed its commitment to long-term shareholder value following a strong financial performance in 2025, while explaining the reason for not declaring dividends for the year ended December 31, 2025.
The clarification was made during the Group’s Full Year 2025 Investors and Earnings Call, where management addressed shareholder concerns over the absence of dividend payments despite strong earnings growth.
The Group stated that the decision not to pay dividends was not due to weak earnings or cash flow challenges, but was tied to regulatory and prudential compliance issues that must be resolved before approvals can be granted. Group Managing Director/CEO, Innocent C. Ike, noted that the company remains committed to rewarding shareholders and maintaining its long-standing record of consistent dividend payments.
Access Holdings recorded strong growth in its 2025 financial results. Gross earnings rose by 13.3 percent to ₦5.53 trillion, driven by growth in net interest income and a 40.9 percent increase in fees and commissions to ₦585.07 billion. Profit before tax grew by 16.2 percent to ₦1.01 trillion, marking the first time the Group crossed the ₦1 trillion threshold in profit before tax.
The Group’s total assets expanded by 24.2 percent to ₦51.56 trillion, supported by the successful integration of newly acquired subsidiaries. Its cost-to-income ratio improved from 56.7 percent to 51.7 percent due to disciplined cost management, while capital adequacy remained strong at 18.2 percent at the holding company level and 20.2 percent for the banking subsidiary.
Access Holdings explained that while dividends were proposed at both half-year and full-year stages in 2025, regulatory approvals were not secured. The half-year issue related to Section 7.1 of the CBN Guidelines for Financial Holding Companies, which has now been resolved through a successful private placement. However, at full-year, another issue arose under Section 19(8)(c) of BOFIA concerning limits on investments in foreign banking subsidiaries relative to shareholders’ funds.
The Group said it has been granted a 12-month window to address the issue and plans to partially divest from some banking subsidiaries while retaining majority ownership. Management assured investors that Access Holdings remains focused on regulatory compliance, capital strength, and sustainable long-term value creation, with the goal of restoring dividend payments once all conditions and approvals are satisfied.
