Access Holdings Reports 79.1% Surge in Net Profits to N440.6 Billion for 9M 2024

Access Holdings (ACCESSCORP) has released its unaudited financial results for the first nine months of 2024, posting a remarkable 79.1% year-over-year increase in net profits to N440.6 billion. This growth was largely fueled by a 128.7% year-over-year rise in interest income and a 122.1% increase in fees and commission income.

The company’s performance was supported by a substantial 69.0% year-to-date growth in interest-earning assets, with total assets climbing 54.0% to N41.09 trillion. Both loan and deposit growth contributed significantly to this expansion.

Interest income reached N2.40 trillion, up from N1.05 trillion in the same period last year, driven by a 69.0% increase in interest-earning assets, which reached N29.62 trillion as of September 2024. However, interest expenses also grew by 135.9% to N1.55 trillion, primarily due to a rise in the Cost of Funds from 5.6% to 7.1%.

Despite the increase in interest expenses, net interest income surged by 116.7% to N844.8 billion, with the Net Interest Margin rising to 4.8% from 4.1% year-over-year.

Other income streams also contributed to the company's strong performance. Fee and commission income increased by 122.1% to N329.9 billion, while trading revenues rose 74.3% to N548.4 billion, supported by gains from financial instruments marked at fair value. Other income saw a significant increase of 217.1% to N70.1 billion, although there was a slight sequential decline in Q3, likely due to shifting market conditions.

Operating expenses grew by 110.0% year-over-year to N1.09 trillion, primarily due to rising personnel, AMCON charges, and IT-related costs, resulting in a Cost-to-Income ratio of 60.8%, up from 59.3% last year.

Pre-provision earnings reached N702.6 billion, marking a 97.5% increase, while after accounting for N144.9 billion in loan impairment provisions (up 134.5% year-over-year), pre-tax profits stood at N558.2 billion, an 89.6% increase. Net profits ultimately rose to N440.6 billion, translating to an EPS of N12.40. Despite a slight dip in Return on Average Equity (ROAE) to 22.2%, Return on Average Assets (ROAA) remained stable at 1.8%, underscoring solid asset-based profitability.