Access Holdings Plc is gearing up for a significant increase in shareholder returns in 2025, following mounting pressure from investors to improve dividend payouts in light of the bank’s strong financial performance.Â
During its third Annual General Meeting held on May 15, 2025, the leadership of the financial services group made a public commitment to raise the interim dividend to N1 per share, representing a 122 percent increase compared to the 45 kobo paid in the previous year.
This strategic pledge, delivered by Acting Group Chief Executive Officer Bolaji Agbede, comes when investor confidence in the bank’s long-term growth is reinforced by solid fundamentals and expanding international earnings. Agbede assured attendees that the bank was well-positioned to meet this new dividend target, pointing to the consistent income streams across its African subsidiaries and beyond. This move marks a milestone in the group’s dividend history and reflects a proactive approach to enhancing shareholder value amid a challenging macroeconomic environment.
In recent years, Access Holdings has steadily strengthened its balance sheet and broadened its earnings base, thanks to diversified operations and strategic acquisitions. The 2024 financial year closed with a profit after tax of N642.2 billion, a 3.7 percent increase from the N619.3 billion reported in 2023. Shareholders also endorsed a final dividend of N2.05 per share for 2024, following a prior announcement by the board in April. When combined with the interim dividend, the total payout for the year stood at N2.50 per share, yielding 11.36 percent at a market price of N22. This underscores the group’s ability to sustain dividend payments while pursuing long-term growth.
Access Holdings’ dividend policy continues to attract comparisons with its peers in Nigeria’s tier-one banking space. While Zenith Bank, GTCO, and UBA paid N1 per share in interim dividends for 2024, Access Holdings trailed with 45 kobo. Yet, this upcoming adjustment to N1 per share aims to close that gap, and potentially set a new benchmark for the group moving forward.
Notably, the surge in interim payouts across the banking sector last year was largely fueled by gains from exchange rate adjustments following the naira’s devaluation. While these windfalls contributed to short-term profit boosts, the sustainability of such payouts depends on the quality of earnings. Access Holdings appears mindful of this, balancing its dividend ambitions with prudent management of both cash and non-cash income components.
Beyond dividend announcements, the AGM also spotlighted governance matters. A proposed composite resolution for director elections was split into individual motions, allowing shareholders to vote separately on each nominee. This approach reflected the company’s responsiveness to investor feedback and commitment to transparency in corporate governance.
Access Holdings’ latest financial updates also signal a positive outlook for the current year. The unaudited results for Q1 2025 reveal a profit after tax of N182.75 billion, marking a 14.7 percent year-on-year increase. This figure already represents nearly 29 percent of the group’s total earnings for 2024, suggesting that the bank is on track to exceed its previous performance.
Over the past five years, Access Holdings has paid out N317.2 billion in dividends, with an average payout ratio of 23 percent and a compound annual growth rate of 44.9 percent in dividend payments. These figures illustrate the group’s consistent effort to reward investors, even amid broader economic uncertainty.
Access Holdings’ bold dividend target and solid earnings momentum as the year progresses are expected to reinforce investor trust and enhance its reputation as a shareholder-focused institution.
