Access Holdings has built scale; now comes the test of creating value
After two decades of acquisition-led growth, one of Africa's most widely spread banking groups has made returns, not reach, its measure of success. The post Access Holdings has built scale; now comes the test of creating value appeared first on Nairametrics .
Access Holdings, Africa's widely spread banking group, has reached a critical juncture: the transition from sheer scale to sustainable value creation. For much of its existence, the group measured progress primarily by its size, amassing ₦51.56 trillion in total assets by the end of 2025. However, the company has now acknowledged that simply growing larger is no longer the sole indicator of success.
Management has shifted its strategy, emphasizing a move "from scale to value." The central aim is now to deliver stronger earnings per share and generate returns on equity that consistently exceed the cost of capital. While scale offers numerous advantages, such as attracting more deposits, serving bigger corporate clients, and spreading the cost of technology and compliance, it also brings significant costs that tend to surface later in the company's expansion. These costs include new systems, staff, regulators, and risks associated with each new market.
In 2025, Access Holdings reported a pre-tax profit of ₦1 trillion, with the cost-to-income ratio improving to 51.7%, indicating a more efficient operation. However, return on average equity declined from 21.6% to 18.4%, primarily due to higher impairment charges and accelerated provisions on legacy loans and other exposures covered by regulatory forbearance.
The Group's results reveal both sides of the scale-versus-value equation. While assets, deposits, and customer numbers continue to rise, earnings per share from these assets are not keeping pace.
Access Holdings operates in markets with diverse economies, competitors, and regulatory environments. Its subsidiaries differ significantly in maturity, profitability, and stage of development. Establishing clear economic purposes, target returns, and timelines for each subsidiary is crucial. While restructuring or exiting struggling businesses may be necessary, the overarching goal is to ensure every naira of capital has a clear commercial reason for its presence.
Nigeria remains the Group's core, with pre-tax profit increasing by 8% in 2025 despite higher provisions and pressure on interest margins. The true test will be whether the Group can deepen customer relationships and grow fee-based income from existing businesses, particularly in the non-banking ventures like Access Pensions, Access Insurance Brokers, and Hydrogen Payments.
These businesses, along with Oxygen X Finance, which focuses on digital consumer lending, hold the potential to broaden the Group's earnings base and support stronger returns. Ultimately, the success of this shift from scale to value will be evident in the Group's ability to strengthen its balance sheet, improve profitability, and deliver consistent returns to investors.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
