Access Holdings Clarifies Profit Gap as Group PBT Hits ₦320.6bn, Bank Posts ₦303bn

When Access Holdings Plc released its half-year 2025 results, financial analysts and shareholders quickly noted an interesting trend. The Group’s Profit Before Tax (PBT) stood at ₦320.6 billion, only slightly higher than Access Bank’s standalone PBT of ₦303 billion. Similarly, the Group’s Profit After Tax (PAT) was ₦215.9 billion, compared to the Bank’s ₦199.3 billion.

At first glance, this narrow margin raised eyebrows across financial circles, sparking discussions about whether the holding company might be under-reporting profit. But a deeper examination shows the figures are not inconsistent, they are a reflection of accounting consolidation principles, regulatory prudence, and strategic financial discipline.

The Holding Company reported a Profit Before Tax (PBT) of ₦320.6 billion and Profit After Tax (PAT) of ₦215.9 billion, while its flagship subsidiary, Access Bank, recorded a PBT of ₦303 billion and PAT of ₦199.3 billion within the same reporting period.

Adding his perspective, Mr. Peter Adebayo, a chartered accountant and financial consultant, emphasized that the Group’s reporting approach reflects international best practices under IFRS standards and should not be misconstrued as under-reporting.

“What Access Holdings is doing is prudent financial governance. The minor differences between Group and Bank profits result from consolidation adjustments, tax considerations, and the varying maturity levels of its non-banking subsidiaries,” Adebayo explained.

“If anything, this shows Access Holdings’ growing strength in diversification. The Bank’s dominant contribution reflects efficiency, while the emerging businesses demonstrate long-term value creation,” he added.

This close performance range between the HoldCo and the Bank has raised questions among investors and analysts about whether the Group may be under-reporting or consolidating profits conservatively.

However, financial analysts explain that the apparent discrepancy is not an indicator of under-reporting but rather a reflection of consolidated accounting practices, which include intra-group adjustments, taxation effects, and performance variations across subsidiaries.

“Access Holdings operates as a diversified financial services group. What we see here is the combined effect of its non-banking subsidiaries’ performance and inter-company eliminations during consolidation. It’s a standard reporting framework under IFRS accounting rules,” said Abdul Haruna Olayinka, a Lagos-based capital market analyst.

He added that the strong performance of Access Bank, contributing over 94% of the Group’s total profit, underscores the banking arm’s continued dominance in Access Holdings’ overall portfolio.

“The HoldCo structure is designed to allow diversification across asset management, insurance, pensions, and payments. But Access Bank still drives the bulk of earnings, which means most revenue and cost lines pass through the Bank before consolidation,” Olayinka noted.

Pull-Out Statistics

Key Performance Indicators (H1 2025)

• Access Holdings Gross Earnings: ₦2.5 trillion (+13.8% YoY)
• Group Profit Before Tax (PBT): ₦320.6 billion
• Group Profit After Tax (PAT): ₦215.9 billion
• Access Bank (Standalone) PBT: ₦303 billion
• Access Bank (Standalone) PAT: ₦199.3 billion
• Total Assets: ₦42.4 trillion
• Customer Deposits: ₦22.9 trillion
• Loans & Advances: ₦13.2 trillion
• Shareholders’ Equity: ₦3.8 trillion

Why the Numbers Differ

The gap between Access Holdings’ consolidated results and Access Bank’s standalone performance is not about manipulation or understatement. It is the result of how group financial statements are prepared under International Financial Reporting Standards (IFRS).

1. Consolidation Accounting

Access Holdings operates as a financial conglomerate, owning subsidiaries across banking, pensions, insurance, payments, and digital lending.
When it reports its results, it consolidates all subsidiaries’ performances but eliminates intra-group transactions, such as loans, service fees, and dividends between subsidiaries, to prevent double counting.

In effect, profits recorded by Access Bank in its standalone accounts may be partly eliminated when consolidated, since they include intra-company activities within the Group structure.

“What looks like under-reporting is actually the removal of internal profits to comply with IFRS standards,” explained a Lagos-based financial analyst familiar with the Group’s reporting structure.

2. Tax and Deferred Adjustments

Access Bank pays tax at the entity level. When its profits are rolled up to Access Holdings, additional tax adjustments — including deferred tax assets and liabilities — are made to reflect the Group’s full fiscal exposure.
This can lead to a lower consolidated PAT figure, as the Group accounts for aggregate tax liabilities across all jurisdictions in which it operates.

3. Non-Banking Subsidiaries’ Minority Interests

Subsidiaries like Access ARM Pensions, Hydrogen Payments, and Access Insurance Brokers recorded strong growth in H1 2025. However, because Access Holdings does not own 100% of these businesses, only its ownership share of profits is consolidated.
The remainder “called non-controlling interest” belongs to other investors and is not included in the Group’s reported PAT.

4. Currency Translation and FX Volatility

Access Holdings operates across multiple African markets and the United Kingdom, exposing it to foreign exchange translation differences.
When foreign subsidiaries’ results are converted to naira, fluctuations in exchange rates can create valuation losses that reduce consolidated profit, even if those subsidiaries perform well in their local currencies.

5. Regulatory Prudence and Capital Preservation

As a financial holding company regulated by the Central Bank of Nigeria (CBN), Access Holdings must maintain higher capital and liquidity buffers than a single bank entity.
This means some income streams are deferred or reinvested for regulatory capital purposes, rather than fully recognized as profit in the reporting period.

“Access Holdings’ approach to profit recognition is conservative by design. It strengthens investor confidence and ensures long-term sustainability,” noted an investment expert from Proshare Research.

Pull-Out Chart: Profit Comparison (₦ Billion)

Beyond the Numbers: The Strategic View

Access Holdings’ model is built on diversification and scale, blending traditional banking strength with high-growth opportunities in pensions, insurance, and digital finance.
Its subsidiaries like Hydrogen Payments processed ₦41.1 trillion in transactions, up 211% year-on-year, while Access ARM Pensions and Access Insurance Brokers posted 65% and 161% PBT growth, respectively.

Despite the accounting nuances, these performances show that Access Holdings’ multi-vertical strategy is working, delivering steady profits, balanced risk, and sustainable shareholder value across its portfolio.

Analyst Insight: Clarity in Consolidation

Analysts agree that the slight variation between the Group’s and Bank’s results is a technical accounting issue, not a red flag. The numbers highlight how Access Holdings is balancing rapid growth with financial discipline, ensuring it remains compliant with CBN and IFRS standards while strengthening investor trust.

“What matters isn’t just the headline profit,” said an Abuja-based economist.
“It’s that Access Holdings is managing risk prudently, diversifying earnings, and maintaining resilience in volatile markets. That’s what investors want to see.”

Transparency Over Speculation

According to the report, the perceived “profit gap” between Access Bank and Access Holdings is a reflection of how large, diversified financial groups operate under global accounting standards.
Far from under-reporting, the Group’s results reflect prudence, transparency, and strong governance, qualities that enhance its reputation as one of Africa’s most trusted financial institutions.

With total assets surpassing ₦42 trillion, and strong performances across fintech, pensions, and insurance, Access Holdings continues to prove that innovation, discipline, and scale can coexist in Africa’s fast-evolving financial landscape.

Access Holdings Plc’s ₦320.6bn PBT in H1 2025 appears close to Access Bank’s ₦303bn, but analysts explain the difference arises from IFRS consolidation, tax adjustments, and prudent group reporting, not under-reporting.