We’ve previously discussed Access Holdings Plc (Accesscorp) twice, with our last blog post on November 21, 2024 (Accesscorp will investors get a second chance). As one of Nigeria’s largest financial institutions, Accesscorp continues to solidify its position in the banking and financial services sector, leveraging its diversified revenue streams and robust digital banking infrastructure.

In its recently released Q3 2024 financial report, Accesscorp posted gross earnings of ₦1.36 trillion, representing a 12% year-over-year growth, driven by higher interest income and non-interest revenue from its digital banking and payment platforms. However, rising operating expenses and inflationary pressures impacted profitability, with the company reporting a net profit of ₦80 billion, down from ₦95 billion in the same period last year. The cost-to-income ratio of 65% underscores the growing cost of operations, particularly in energy and regulatory compliance.

Accesscorp’s capital adequacy ratio remains strong at 20%, well above the regulatory minimum, indicating a stable financial position. Its loan-to-deposit ratio of 65% reflects a balanced lending approach while maintaining liquidity to support future growth.

Currently trading at ₦24.5, Accesscorp’s stock has shown a 7% year-to-date increase, driven by investor confidence in the bank’s ability to navigate Nigeria’s challenging economic climate. 

Accesscorp’s strategic investments in expanding its African footprint and scaling digital operations remain key growth drivers. While short-term profitability challenges persist, its strong fundamentals and focus on innovation position the company for sustainable growth. For investors seeking exposure to Nigeria’s resilient banking sector, Accesscorp remains a compelling choice.