Investors Bet on Access Holdings’ Long-Term Play as Group Eyes Sustainable Returns

Investors Bet on Access Holdings’ Long-Term Play as Group Eyes Sustainable Returns
By prince Benson Davies

Investor sentiment toward Access Holdings Plc remains strong as shareholders endorse the financial group’s pivot to long-term value creation, even after the board held back on dividends for the 2025 financial year.

At the company’s annual general meeting in Lagos, shareholders said the decision not to pay dividends did not shake their confidence in the group’s direction. Instead, many described it as a necessary step to strengthen compliance and position Access Holdings for higher returns in future years. The group, Nigeria’s largest financial services company by assets, is moving from aggressive expansion to a strategy it calls “From Scale to Value”.

The Nation newspaper reported that shareholders at the AGM pointed to the group’s 15-month performance as evidence of underlying strength. Gross earnings climbed to N5.53 trillion in 2025 while total assets crossed N51.53 trillion. Pre-tax profit grew 16.2% to N1.01 trillion, supported by N1.36 trillion in core interest income and a 41% jump in net fees and commission to N585 billion. Operating income rose 23.9% to N3.17 trillion. Cost to income ratio improved to 51.7% and Return on Average Equity held at 18.4%. Earnings per share stood at N13.48.

With close to one million investors on its register, Access Holdings has one of the widest shareholder bases in Africa. Retail investors make up more than three-quarters of that number and account for nearly half of daily trades on the Nigerian Exchange. Leaders of key shareholder groups said the base understands the trade-off between immediate payouts and compounding value.

Sir Sunny Nwosu, founding coordinator of the Independent Shareholders Association of Nigeria, said the group’s transformation from a mid-tier lender to Nigeria’s biggest bank gives investors little reason to doubt its future. Dr Faruk Umar, president of the Association for the Advancement of Rights of Nigerian Shareholders, compared the dividend pause to keeping funds in a compounding account, adding that shareholders expect a “bumper return at the end”. Mr. Patrick Ajudua of the New Dimension Shareholders Association commended the 2025 performance but urged management to tighten impairment charges and operating costs.

Boniface Okezie, chairman of the Progressive Shareholders Association of Nigeria, acknowledged that the absence of a dividend was notable but stressed that dividend alone should not define performance. He noted that CBN rules constrained payouts because the bank subsidiary, which drives the holding company’s earnings, could not distribute dividends. He urged regulators to weigh the impact of policy on retail investors and asked the board to consider an interim dividend by September to realign shareholder interests.

Mr. Moses Igbrude, national coordinator of ISAN, said Access Holdings is well-structured to deliver substantial value. He expressed confidence that the management team can leverage the group’s N51.56 trillion asset base and N4.33 trillion in shareholders’ funds to meet projections.

The group is already building momentum into 2026. First quarter pre-tax profit hit N272.1 billion, up from N222.78 billion in the same period of 2025. Total assets reached N54.44 trillion and total equity improved to N4.4 trillion by March 2026.

Speaking to shareholders, Chairman Aigboje Aig-Imoukhuede said the institution’s defining test is not growth alone but the ability to grow profitably, sustainably, and with discipline. He explained that the “From Scale to Value” strategy reflects the natural next phase after years of expansion. He added that while the group continues to generate strong returns, ensuring earnings per share consistently exceed the cost of capital remains central to unlocking shareholder value.

Aig-Imoukhuede also addressed the unrealised value in Access Holdings’ international subsidiaries, saying management is focused on improving market recognition of that intrinsic value. He closed by stating that capital retained today must translate into greater value tomorrow, and that the board’s responsibility is to build an institution defined by clarity of purpose, disciplined execution, and sustainable value creation over time.