In order to reaffirm its position as a leading tier-1 Nigerian bank in terms of profitability and shareholder returns, ACCESSCORP must overcome the significant challenge of rising costs amid slower income growth. The Q1’25 financial results underscore this challenge: interest expenses surged by 71.3% year-on-year, outpacing the 36.3% increase in interest income and leading to a 20.1% decline in Net Interest Income (NII). Additionally, operating expenses grew faster than operating income, driving a 3.5ppts rise in the Cost-to- Income Ratio (CIR) to 58.8%
To address this concern, management has reiterated its commitment to cost optimization. This position is further bolstered by the imminent shift in its strategic cycle from investment to consolidation, where the focus would be on driving value creation that could boost income and moderate cost pass- through to the bottom line. We expect this initiative to provide support and lift profitability over the medium term.
