Access Holdings Plc’s 2025 financial year told a clear growth-at-a-cost story. While the banking group delivered strong revenue growth and expanded its balance sheet, pressure on profit margins, weaker shareholder returns and subdued stock performance left it trailing most of Nigeria’s tier-one banking peers on the Nigerian Exchange (NGX).

Despite a broad rally in banking stocks driven by elevated interest rates, revaluation gains and improving sector earnings, Access Holdings’ shares traded largely sideways to lower for much of the year. The stock underperformed the NGX Banking Index and major peers including Zenith Bank, GTCO, United Bank for Africa (UBA) and FBN Holdings, all of which delivered stronger price appreciation supported by cleaner earnings growth and more consistent dividends.

The contrast was particularly stark. Zenith Bank and GTCO recorded double-digit gains during the year, underpinned by robust profitability, disciplined cost structures and predictable capital returns. UBA benefited from earnings diversification across its pan-African operations, while FBN Holdings attracted renewed investor interest following balance-sheet clean-up and improved governance. Against this backdrop, Access Holdings emerged as one of the weakest performers among tier-one banks.

Analysts attribute the lagging share price to sustained earnings pressure from high impairment charges, rising operating costs and cautious investor sentiment around the group’s aggressive expansion strategy across Africa. The absence of an interim dividend also dampened demand for the stock, particularly among income-focused investors who favoured peers with clearer payout visibility.

Operationally, however, the group delivered solid top-line growth. Gross earnings rose strongly in 2025, supported by higher interest income as yields increased and earning assets expanded. Customer deposits and total assets also grew significantly, reinforcing Access Holdings’ position as one of Nigeria’s largest banking franchises by balance-sheet size.

Yet the benefits of this expansion came at a cost. Elevated loan loss provisions, higher operating expenses and a challenging macroeconomic environment eroded bottom-line performance. Although profit before tax improved year on year, profit after tax growth lagged peers such as Zenith Bank and GTCO, which reported stronger margin expansion and tighter cost control.

Earnings per share declined during the year, weighed down by a higher share count following capital-raising activities and the impact of impairments. This contrasted with relatively stable or improving per-share earnings reported by other tier-one lenders, further widening the valuation gap within the sector.

By year-end, Access Holdings traded at a discount to most of its peers on key valuation metrics, including price-to-earnings and price-to-book ratios. While the discount reflects investor concerns about near-term profitability and returns, some analysts see potential upside if asset quality improves and the group’s regional expansion begins to contribute more meaningfully to earnings.

Overall, Access Holdings’ 2025 performance highlighted a widening gap between balance-sheet growth and shareholder returns. As investors look ahead to 2026, attention will remain firmly on impairment trends, cost efficiency and dividend policy. These are critical factors that will determine whether the group can convert scale into sustained value and close the performance gap with Nigeria’s leading banking stocks.

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