MON NOV 02 2026-theGBJournal| Access Holdings Plc reported a 5.9% increase in nine-month profit after tax, as a sharp decline in loan impairment charges offset weaker trading income and rising funding costs.
Profit after tax rose to N474.17 billion in the nine months through September 2026, from N447.55 billion a year earlier, according to the lender’s unaudited financial results published on Monday. Profit before tax increased 8.3% to NGN667.36 billion.
Access Holdings earnings growth was largely supported by a 73.5% decline in impairment charges to N92.91 billion, reducing the cost of risk to 0.9% from 3.8% a year earlier.
Consequently, net interest income after loan-loss expenses increased 32.1% to N1.20 trillion.
Interest income rose 6.9% to N3.10 trillion, supported by an 11.5% increase in income from customer loans and a 66.6% rise in returns from cash balances. The growth in lending income reflected a 7.4% year-to-date expansion in the loan book.
However, rising funding costs continued to weigh on the bank’s margins. Interest expenses increased 10.1% to NGN1.81 trillion, outpacing the growth in interest income, as interest paid on customer deposits surged 54.5% to NGN1.25 trillion.
Customer deposits expanded 6.6% to N36.85 trillion, while the cost of customer deposits increased to 4.6% from 3.9% a year earlier. The bank’s current and savings account ratio also weakened to 59.9% from 63.7% at the end of June.
Net interest income consequently grew by a more modest 2.7% to NGN1.29 trillion. Net interest margin contracted 40 basis points to 4.4%, reflecting lower asset yields and higher deposit costs, although the overall cost of funds remained unchanged at 5.7%.
Non-interest income declined 11.8% to N769.47 billion, reflecting weaker trading and foreign-exchange gains. Net gains on financial instruments at fair value swung to a loss of N19.91 billion from a gain of N146.89 billion a year earlier, while net foreign-exchange gains fell 38.7% to N66.51 billion.
The decline was partly offset by a 12.4% increase in net fees and commission income to NGN534.94 billion. Overall, operating income rose 10.6% to N1.97 trillion.
Operating expenses increased 11.8% to N1.30 trillion, driven by higher personnel costs, depreciation and amortisation, and professional fees. Personnel expenses rose 20.5%, while depreciation and amortisation increased 22.9%. Professional fees surged 110.1%.
The increase in expenses pushed the cost-to-income ratio to 66.1% from 65.4% a year earlier.
Higher income tax charges also moderated the growth in bottom-line earnings. Tax expenses rose 14.5% to N193.20 billion, lifting the effective tax rate to 28.9% from 27.4% in the corresponding period of 2025.
X-@theGBJournal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
