Access Holdings Explains Dividend Pause Despite Strong 2025 Earnings

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Access Holdings Plc has reaffirmed its commitment to delivering long-term shareholder value following a strong financial performance in 2025, while providing clarity on the temporary non-payment of dividends for the financial year ended December 31, 2025.

The company reiterated this position during an investor call on its full-year 2025 financial statement, noting shareholder concerns over the absence of a dividend declaration despite robust earnings and balance sheet growth.

Management explained that the decision was not performance-driven but based on regulatory and prudential considerations, taken in the best interest of shareholders and the long-term sustainability of the Group.

Commenting on the development, Group Managing Director/Chief Executive Officer of Access Holdings Plc, Innocent Ike, said: “We recognise the importance of dividends to our shareholders and fully understand the expectations created by the Group’s strong financial performance in 2025. The Board’s decision not to declare a dividend was not a reflection of earnings weakness or cash flow constraints, but a deliberate and responsible response to specific regulatory requirements.”

For the 2025 financial year, the Group recorded a resilient performance, with gross earnings rising by 13.3 per cent to ₦5.53 trillion. This was supported by strong growth in net interest income and a 40.9 per cent increase in fees and commissions to ₦585.07 billion.

Profit before tax grew by 16.2 per cent to ₦1.01 trillion, crossing the ₦1 trillion mark for the first time, while total assets expanded by 24.2 per cent to ₦51.56 trillion, reflecting scale growth and the integration of recent acquisitions.

The cost-to-income ratio improved from 56.7 per cent to 51.7 per cent, indicating enhanced efficiency and disciplined cost management. Capital adequacy at the Group level remained stable at 18.2 per cent, while the banking subsidiary strengthened to 20.2 per cent.

“These results clearly demonstrate the strength, resilience and cash-generating capacity of our franchise,” Ike said, adding that the Group retains the ability to reward shareholders once regulatory conditions are fully met.

Despite the strong performance, dividend payments remain subject to ongoing regulatory considerations affecting the banking subsidiary. These include requirements under Sections 7.1 and 19(8)(c), which mandate the completion of remedial actions, strengthening of capital and liquidity buffers, and full regulatory alignment before approvals can be granted.

According to Ike, maintaining the confidence of regulators, depositors and other stakeholders is fundamental to the Group’s operations, noting that the decision reflects a commitment to prudence and sound governance.

The company said it is already implementing agreed measures with regulators and the Board to resolve the constraints within the current financial year. These steps include addressing outstanding regulatory issues, strengthening subsidiary-level buffers, and enhancing readiness to resume dividend payments.

“We are working closely with our regulators and remain confident that, upon the successful completion of the agreed remedial actions and receipt of the necessary approvals, dividend payments will resume within the year. Our commitment to rewarding shareholders remains unchanged,” Ike stated.

Looking ahead, Access Holdings said it is targeting improved performance metrics, including a 20 per cent exit return on equity, return on assets above 2 per cent, and a cost of risk below 3 per cent, driven by digital expansion, efficiency gains, and disciplined growth.

“The temporary dividend pause reflects strategic restraint, not diminished capacity,” Ike added. “Access Holdings is strongly positioned to convert its scale, geographic diversification and franchise strength into predictable earnings, resilient capital and sustainable shareholder returns.”