Emmanuel OchayiAccess Holdings Reports Q3 Revenue Growth
Access Holdings Plc, a prominent African financial services group, recently released its unaudited Q3 2024 results, highlighting a strong revenue increase.
The Group’s total revenue for the first nine months surged by 114.5%, rising from N1.6 trillion in 2023 to an impressive N3.4 trillion in 2024.
Join our WhatsApp ChannelThis significant growth reflects Access Holdings’ strategic expansion across its banking and non-banking subsidiaries, boosting shareholder returns and establishing its position as a leader in the financial sector.
Strong Growth in Interest Income
Interest income played a central role in Access Holdings’ Q3 performance, accounting for 70% of total revenue. The Group recorded N2.4 trillion in interest income, a testament to increased customer activity and a well-executed growth strategy.
Non-interest income also saw substantial growth, reaching N1 trillion, an 87.2% increase year-on-year.
The surge in non-interest income is attributed to higher transaction volumes on digital platforms and alternative channels, showcasing Access Holdings’ emphasis on digital innovation.
Profitability and Efficiency
Despite challenges such as inflation, Access Holdings maintained a stable cost-to-income ratio at 60.8%, highlighting the Group’s operational efficiency.
Profit before tax (PBT) grew by 89.6%, reaching N558.2 billion, while profit after tax (PAT) rose by 82.8% to N457.7 billion. This profitability translated into an annualised return on equity of 22.2%, with earnings per share increasing to N12.40.
Asset and Deposit Growth
Access Holdings reported a 54% year-to-date increase in total assets, reaching N41.1 trillion by Q3 2024. Shareholders’ equity rose by 51%, totaling N3.3 trillion.
Customer deposits saw a 45.4% boost, climbing from N15.3 trillion in December 2023 to N22.3 trillion in September 2024.
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Gross loans and advances also rose by 56.2%, amounting to N13.9 trillion, underscoring Access Holdings’ strong market presence and customer trust.
Subsidiary Performance Across Regions
Subsidiaries contributed significantly to the Group’s overall profit, especially in the UK and African regions, where they accounted for 54.8% of the banking sector’s profit before tax. Year-on-year, these subsidiaries saw a profit increase of 185.8%, driven by Access Bank’s continued success in meeting regional financial needs.
Non-Banking Subsidiaries’ Consistent Growth
Access Holdings’ non-banking subsidiaries also demonstrated remarkable progress. Access ARM Pensions, which recently merged with ARM Pensions, now manages assets totalling N3.1 trillion.
Hydrogen Payments, another key subsidiary, processed N27.5 trillion in transactions, boosting its operating profit by 516% to N5.7 billion.
Access Insurance Brokers, in its first operational year, recorded a gross written premium of N8.3 billion and a profit before tax of N641 million.
New Digital Ventures and Future Growth
The Group’s latest addition, Oxygen X Finance, focuses on digital lending and reported N2.1 billion in operating income and a profit before tax of N412 million.
Access Holdings is determined to expand its market reach through these diversified subsidiaries, each contributing to the Group’s sustained profitability and cross-border capabilities.
Focus on Long-Term Strategy
Looking forward, Access Holdings has reaffirmed its commitment to enhancing profitability across all markets through diversified revenue streams.
By strengthening its core banking services and expanding digital services, the Group aims to maintain its upward trajectory and solidify its position as a leading player in African and global financial markets.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
