Access Bank UK overtakes Nigeria as biggest earnings contributor for first time

Access Holdings’ United Kingdom subsidiary emerged as the group’s largest earnings contributor in the first quarter of 2026, overtaking its Nigerian operations for the first time, as stronger foreign income and expanding international operations helped cushion the impact of Africa’s most populous economy.

BusinessDay analysis of the banking group’s latest financial statements showed that profit after tax at Access Bank UK Limited rose by 73.5 percent to N83.8 billion from N48.3 billion in the same period of last year.

Operating income nearly doubled to N175.5 billion from N87.4 billion, while profit from the Nigerian operation declined to N52 billion from N79.9 billion. Overall, the group’s net profit increased to N216.5 billion from N182.8 billion.

The performance means Access UK contributed 38.7 percent to group earnings in the quarter, compared with Nigeria’s 24 per cent contribution, underscoring the lender’s growing international diversification strategy.

“If you look at Access Holdings’ strategy, it is aimed at reducing Nigeria’s contribution to the group’s overall earnings — not because the Nigerian business is weakening, but because the group wants to grow its other subsidiaries faster so that earnings are more balanced across markets,” said Ayokunle Olubunmi, head of Financial Institutions Ratings at Agusto & Co.

He noted that Access UK functions more like a regional trade hub within the group than a standalone subsidiary. “Expanding the contribution of subsidiaries outside Nigeria has been part of Access’ long-term strategy to reduce the dominance of the Nigerian business.”

Trade finance fuels growth in UK operations

The strong performance from the UK subsidiary reflects the increasing role of trade finance in Access’ expansion strategy across Africa and international markets.

Major Nigerian lenders, including Access Bank, First Bank and the Nigerian Export-Import Bank (NEXIM), are heavily involved in trade finance, providing credit facilities, payment guarantees and insurance support to importers and exporters. According to the African Development Bank Group (AfDB), trade activities account for nearly 15 per cent of total banking income across the continent.

The latest trade report from the UK government’s Department for Business and Trade revealed that total trade between the UK and Nigeria reached a record £8.1 billion in the third quarter of 2025, representing an 11.4 per cent increase and the highest level in the past decade. Nigeria also retained its position as the UK’s largest African export market.

According to the report, total UK exports to Nigeria rose by 14.2 percent to £5.7 billion in the four quarters to Q3 2025, while imports from Nigeria increased by 5.1 per cent to £2.4 billion.

“This means the UK reported a total trade surplus of £3.4 billion with Nigeria, compared to a trade surplus of £2.8 billion in the four quarters to the end of Q3 2024,” the report said.

Olubunmi said Access UK’s rapid growth is being driven by rising trade flows and the bank’s aggressive push into trade finance across major African markets. “The bank unit has become significant largely because of strong trade inflows. It has been very aggressive in trade finance and is involved in transactions across major ports, not only in Nigeria but also in several African countries,” he said.

“If you look at the broader story, Access is trying to fill the gap being left by foreign banks exiting or scaling back operations in parts of Africa. What they are using to drive this expansion is their trade solutions platform, with Access UK playing a central role. So, it is not surprising that the UK operation is becoming this large.”

African expansion deepens amid foreign banks’ exit

According to the group’s investor presentation, Nigeria’s contribution to group pre-tax profit declined to 37 percent in the first nine months of 2025 from 61 percent in the corresponding period of 2023 — the lowest level in at least three years.

During the same period, earnings contribution from other African subsidiaries rose to 35 percent, while the UK and other international operations contributed 28 percent.

The balance sheet reflects a similar shift. Africa’s share of total group assets increased to 21 percent from 12 percent, while international assets climbed to 32 percent from 13 percent. Nigeria’s share dropped sharply to 47 percent from 75 percent.

The changing earnings structure comes as Nigerian banks accelerate regional expansion to diversify income and reduce dependence on the domestic market amid tighter regulation and moderating earnings growth at home.

In March 2024, the Central Bank of Nigeria raised minimum capital requirements for banks, compelling lenders to raise fresh equity, merge or downgrade licences before the March 2026 deadline. International banks are now required to maintain a minimum capital of N500 billion, compared with N200 billion for national banks and N50 billion for regional lenders.

Access Holdings became the first lender to meet the new threshold after raising N351 billion in December 2024.

“Expansion outside Nigeria is primarily a diversification strategy,” said Gloria Fadipe, head of research at CSL Stockbrokers. “The Nigerian banking market is deeply regulated, which can limit performance.”

Acquisitions and regulation reshape Access strategy

The group’s expansion strategy has also been supported by acquisitions across the continent and other international markets.

Last year, the bank acquired assets of Standard Chartered Bank’s Gambian subsidiary, while Access Bank UK acquired a 76 percent stake in Mauritius-based AfrAsia Bank. The group also completed the acquisition of the National Bank of Kenya from KCB Group.

In the group’s first-quarter earnings report, Access Bank UK recognised provisional goodwill of N16.3 billion from the AfrAsia acquisition. “This primarily reflects the fair value adjustments recognised on acquisition,” the report said, adding that the purchase price allocation would be finalised within 12 months of the transaction date.

The group’s growing international footprint, however, comes amid tighter regulatory scrutiny from the CBN.

Last week, Access Holdings disclosed plans to reduce equity stakes in some foreign banking subsidiaries to comply with a new regulatory limit introduced by the apex bank.

In June 2025, the regulator directed banks to suspend new foreign investments and capped equity exposure in foreign subsidiaries at 10 per cent of shareholders’ funds, giving lenders 12 months to comply.

Roosevelt Ogbonna, managing director and chief executive officer of Access Bank Nigeria, said the group’s current exposure stands at 19.4 percent and that divestments are being considered to meet the new threshold.