The non-payment of dividends for the year ended December 31, 2025, by Access Holdings Plc has continued to generate reactions from shareholders and others.
The company, in a statement made available to Business Post on Thursday, explained that the cash reward was not given to investors in the fiscal year because it could not get the regulatory clearance.
It dismissed insinuations that the decision not to pay shareholders a dividend was due to weak performance in the period under review.
Last year, Access Holdings delivered a resilient and diversified performance, underscoring its capacity to generate sustainable shareholder returns.
Gross earnings grew by 13.3 per cent to N5.53 trillion, supported by strong growth in net interest income and a 40.9 per cent increase in fees and commissions to N585.07 billion.
Profit before tax rose by 16.2 per cent to N1.01 trillion, while total assets expanded by 24.2 per cent to N51.56 trillion, reflecting scale accretion and the successful integration of recently acquired subsidiaries.
Its cost-to-income ratio improved significantly from 56.7 per cent to 51.7 per cent, driven by disciplined cost management and operating leverage. Capital adequacy remained strong at 18.2 per cent at the holding company level, while the banking subsidiary ended the year with a capital adequacy ratio of 20.2 per cent.
Shareholders would have thought something would drop into their bank accounts, but Access Holdings did not pay a cash reward despite recommending this.
“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,” the chief executive of Access Holdings, Mr Innocent Ike, was quoted as saying in the statement.
“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,” Mr Ike added.
It was explained that while dividends were recommended at both the half-year and full-year in 2025, regulatory approvals were not obtained. At the half-year stage, the constraint related to Section 7.1 of the CBN Guidelines for Financial Holding Companies, which has since been fully resolved following the successful completion of an approved private placement.
At full year, an additional matter arose under Section 19(8)(c) of BOFIA, which places limits on investments in foreign banking subsidiaries relative to shareholders’ funds. The group has been granted a twelve-month window to fully remediate this position. The company noted it will partially divest from some banking subsidiaries but will still retain its super majority shareholding.
According to Mr Ike, “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.”
However, the organisation reassured stakeholders that it remains committed to engaging constructively with all relevant stakeholders to address the matters raised and achieve alignment with applicable requirements within the stipulated timeline.
Reaffirming management’s confidence, Mr Ike stated: “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. Subject to the successful conclusion of this process and the necessary approvals, our objective is to restore dividend payments on a sustainable basis.”
Concluding, he said, “Access Holdings is uniquely positioned to leverage its scale, geographic diversification and strong franchise to deliver resilient earnings growth, stronger returns and enhanced long-term shareholder value.”
