Access Holdings Plc has attributed the suspension of its 2025 dividend payout to regulatory compliance requirements, even as the Group reported record earnings that saw profit before tax cross the N1 trillion mark for the first time in its history.
The clarification came during the Group’s Full Year 2025 Investors and Earnings Call, where management addressed concerns from investors over the absence of dividend payments despite what it described as one of the strongest financial performances in the company’s history.
The financial services group posted impressive earnings for the year ended December 31, 2025, with gross earnings rising by 13.3 per cent to N5.53 trillion, supported by growth in net interest income and a sharp increase in non-interest revenue.
Fees and commissions climbed by 40.9 per cent to N585.07 billion, while profit before tax rose by 16.2 per cent to N1.01 trillion, marking the first time the Group crossed the N1 trillion threshold in pre-tax profit.
Total assets also expanded significantly by 24.2 per cent to N51.56 trillion, reflecting the impact of recent acquisitions and the continued expansion of the Group’s pan-African operations.
Despite the strong numbers, shareholders were left disappointed after no dividend was declared for the financial year. Management, however, maintained that the issue was linked strictly to compliance with regulatory requirements.
Speaking during the earnings call, the Group Managing Director/Chief Executive Officer of Access Holdings, Innocent C. Ike, said the company remained firmly committed to rewarding shareholders.
“Access Holdings has a strong history of consistent dividend payments, and rewarding shareholders remains a core priority for the Board and Management. The non-payment of dividend for 2025 was not due to earnings weakness or cash flow constraints, but an alignment with regulatory and prudential guidelines,” he said.
According to the Group, dividend payments had been proposed at both half-year and full-year stages in 2025, but approvals were not secured from regulators.
The company explained that the initial hurdle stemmed from Section 7.1 of the Central Bank of Nigeria’s Guidelines for Financial Holding Companies. That issue, management noted, has now been resolved following the successful completion of an approved private placement aimed at strengthening capital buffers.
However, another challenge emerged at year-end under Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA), which restricts the extent of investments financial holding companies can maintain in foreign banking subsidiaries relative to shareholders’ funds.
To address the issue, Access Holdings disclosed that regulators had granted the Group a 12-month remediation window. As part of the process, the company plans to partially divest from some of its banking subsidiaries, although it stressed that it would retain super-majority ownership in those entities.
Management said the move was designed to ensure full regulatory compliance while preserving the Group’s long-term growth strategy across Africa and other international markets.
“Our performance in 2025 demonstrates the strength of the franchise and its capacity to generate value for shareholders. Our focus is to ensure that shareholder distributions resume on a sustainable basis once all regulatory conditions are satisfied and the required approvals are obtained,” Ike stated.
The company also pointed to notable improvements in operational efficiency during the year, as its cost-to-income ratio improved from 56.7 per cent to 51.7 per cent, driven by tighter cost controls and stronger operating leverage.
Capital adequacy also remained above regulatory thresholds, with the holding company posting a capital adequacy ratio of 18.2 per cent, while the banking subsidiary closed the year at 20.2 per cent.
Analysts say the clarification may help calm investor concerns, particularly given the Group’s history of dividend payments and its reputation as one of Nigeria’s most aggressive expansion-driven financial institutions.
Access Holdings further assured shareholders that discussions with regulators were ongoing and that the company would continue to provide transparent updates to the market as the remediation process progresses.
According to Ike, regulatory confidence and balance-sheet strength remain central to the Group’s operating philosophy.
“Maintaining the confidence of our regulators, depositors and stakeholders is fundamental to our operating philosophy. In line with our long-standing culture of prudence and sound governance, the Board remains committed to balance sheet strength and capital resilience, as the basis for sustainable shareholder distributions,” he said.
The Group added that it is actively strengthening its liquidity and capital position to support the eventual restoration of dividend payments once all conditions are met.
“We remain actively engaged with the investment community and focused on resolving the matters raised within the prescribed timeline. Our priority remains delivering sustainable long-term value to shareholders through stronger execution, improved financial performance and disciplined growth,” Ike added.
He expressed confidence that Access Holdings says it remains strategically positioned to leverage its scale, geographic diversification and expanding franchise to deliver stronger earnings growth and long-term shareholder value in the years ahead.
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