Access Bank declares dividend as profit narrows despite bumper revenue

Access Holdings Plc, the parent company of Access Bank, has posted a significant jump in gross earnings for the full-year 2024, rising to N4.9 trillion from N2.6 trillion the previous year, buoyed by aggressive expansion and increased lending.

However, the bank’s profit growth remained modest due to soaring expenses.

Profit after tax stood at N642 billion, marginally up from N619 billion in 2023. Earnings per share, however, dropped to N16.71 from N17.23, reflecting the impact of cost pressures on shareholder returns.

A key driver of the bank’s ballooning expenses was interest cost, which more than doubled to N2.2 trillion, mirroring the rising interest rate environment and increased cost of funds. Net impairment charges on financial assets nearly doubled to N245 billion, while personnel expenses climbed to almost N400 billion, also doubling year-on-year.

Despite these cost pressures, Access Holdings pursued an aggressive growth strategy, expanding its asset base significantly. Total assets surged to N41.5 trillion from N26.7 trillion, reflecting a wave of acquisitions across Africa.

Just last week, Kenya’s central bank approved Access Bank’s acquisition of National Bank of Kenya, adding to its continental footprint.

The bank’s liabilities also grew sharply to N37.7 trillion from N24.5 trillion, leaving a slimmer equity base, a signal of the bank’s heavy leveraging in pursuit of growth.

Dividend Boost for Shareholders

Access Holdings’ board declared a final dividend of N2.05 per share, up from N1.80 per share a year earlier. This will be paid on the company’s expanded share base of 53.3 billion ordinary shares.

The final dividend complements an earlier interim dividend of 45 Kobo per share, which had already been paid for the half-year 2024 period, up from 30 Kobo in the same period of 2023.

Both dividends are subject to withholding tax at the point of payment.