Access Holdings Q1 Profit Rises to ₦216.54 Billion as Impairment Charges Surge, Earnings Quality Remains Under Pressure

Access Holdings Plc reported a profit after tax of ₦216.54 billion for the first quarter ended March 31, 2026, representing an 18.5 percent increase from ₦182.75 billion recorded in the corresponding period of 2025 as stronger non-interest income and lower funding costs offset rising credit risk.

The results come shortly after the Group released its delayed 2025 audited financial statements, placing additional scrutiny on the sustainability and quality of earnings in the current financial year.

Interest income declined to ₦824.75 billion from ₦964.57 billion in Q1 2025 on lower yields or reduced earning asset base.

However, interest income on financial assets at fair value through profit or loss rose sharply to ₦70.28 billion from ₦16.10 billion, indicating increased trading activity.

Interest expense dropped significantly to ₦556.17 billion from ₦760.47 billion, driving net interest income higher to ₦338.86 billion from ₦220.21 billion. This improvement reflects a more efficient funding structure and lower cost of funds.

Despite the stronger net interest income, impairment charges on financial assets more than tripled to ₦73.81 billion from ₦21.77 billion.

As a result, net interest income after impairment stood at ₦265.05 billion, up from ₦198.44 billion but showing clear pressure from deteriorating asset quality.

Non-interest income remained a key driver of performance. Net fee and commission income rose to ₦169.24 billion from ₦146.22 billion, supported by transaction growth and digital banking activities.

Net gains on financial instruments also increased to ₦223.76 billion from ₦214.39 billion, further boosting earnings.

Other operating income rose significantly to ₦51.68 billion from ₦12.83 billion, providing additional support to revenue.

However, operating costs continued to trend upward. Personnel expenses increased to ₦131.64 billion from ₦105.56 billion, while other operating expenses rose sharply to ₦271.57 billion from ₦213.76 billion.

Depreciation and amortisation expenses also increased, reflecting ongoing investment in infrastructure and technology.

Profit before tax rose to ₦272.21 billion from ₦222.78 billion, while total tax expenses, including minimum tax of ₦6.60 billion, brought profit after tax to ₦216.54 billion.

Despite the improvement in profit, total comprehensive income came in at ₦126.02 billion, a sharp contrast to a loss of ₦39.58 billion recorded in Q1 2025, but still significantly below profit levels.

The gap reflects continued volatility in other comprehensive income, particularly from foreign exchange translation and fair value movements.

Profit attributable to equity holders stood at ₦200.53 billion, while non-controlling interest accounted for ₦16.01 billion.

Earnings per share declined to 369 kobo from 488 kobo, indicating dilution or increased share base despite higher earnings.

A critical review of the results shows a familiar pattern emerging. While headline profitability improved, the quality of earnings remains mixed with increased reliance on trading gains and fee income, rising impairment charges, and persistent cost pressures.

The Group’s ability to sustain earnings momentum will depend on improving asset quality, stabilizing core interest income, and containing operating expenses, particularly in a macroeconomic environment characterized by elevated interest rates and currency volatility.