Access Holdings Plc has disclosed that its investment in subsidiaries stood at N446.6 billion as of September 30, 2026, representing 19.29 per cent of shareholders’ funds, almost double the 10 per cent limit stipulated by the Banks and Other Financial Institutions Act (BOFIA).
The financial services group said it was implementing a capital restructuring programme involving capital recalls from subsidiaries, minority stake sales and the establishment of a new holding structure to address the regulatory gap ahead of the March 2027 deadline set by the Central Bank of Nigeria (CBN).
The disclosure featured prominently at the Group’s nine-month 2026 earnings call held on November 5, where management outlined its regulatory compliance strategy, earnings performance and operational challenges.
Access Holdings said capital recalls were ongoing in seven markets, comprising six African countries and one market within its international operations.
The programme has received shareholders’ approval in all seven markets, while regulatory approval has been secured in four.
According to the Group, capital from one market was returned in October, with three additional recalls expected in November, two before the end of December and the final one possibly in early 2027.
The Group is also pursuing minority stake sales in five countries while retaining at least 80 per cent ownership in each subsidiary.
The sale of a 7.44 per cent stake in Access Bank Ghana was completed in July 2026.
Based on the disclosed investment value and ratio, Access Holdings would need to reduce its investment in subsidiaries by approximately N215 billion to meet the 10 per cent statutory threshold, assuming shareholders’ funds remain unchanged.
However, management did not disclose the exact amount expected from the capital recalls.
The Group said the CBN’s March 2027 deadline would guide the implementation of the programme, adding that the restructuring was designed to provide sufficient buffer against foreign exchange movements.
The development is particularly significant for shareholders because the BOFIA restriction remains the outstanding regulatory obstacle to dividend payments.
Access Holdings Group Managing Director, Innocent Ike, said the Group was now compliant with Section 7.1 of the CBN’s financial holding company guidelines, leaving Section 19(8)(c) of BOFIA as the remaining regulatory constraint.
The Group’s paid-up capital of N616.02 billion is now above the combined paid-up capital of its subsidiaries, which stands at N608.74 billion, satisfying the requirement under Section 7.1.
Ike explained that the Group’s 2025 dividend was withheld because of the BOFIA restriction. He said dividend payments would be considered after compliance, subject to the recommendation of the Board and approval of the CBN.
Access Bank Managing Director, Roosevelt Ogbonna, said the Group operates a residual dividend policy and would not provide guidance on its payout ratio until the regulatory position on distributions becomes clearer.
Meanwhile, Access Holdings reported profit before tax of N667.36 billion for the nine months ended September 30, 2026, representing an increase of 8.3 per cent, while profit after tax rose by 5.9 per cent to N474.17 billion.
However, management acknowledged that four of its seven original full-year 2026 performance targets were unlikely to be achieved, particularly in shareholder returns, profitability and operating efficiency.
Return on average equity stood at 14.1 per cent, against the full-year target of above 20 per cent, while return on average assets was 1.2 per cent compared with the target of above 2.0 per cent.
Net interest margin declined to 4.4 per cent, below the guidance of above five per cent, while the cost-to-income ratio improved from 65.2 per cent in the first half to 63.1 per cent but remained outside the targeted range of 50 to 55 per cent.
Cost of risk, however, stood at 0.51 per cent, comfortably within the Group’s guidance of below three per cent. The non-performing loan ratio increased to 3.55 per cent from 3.35 per cent in the first half, marginally exceeding the 3.5 per cent target.
The Group attributed pressure on its net interest margin to wholesale-funded international subsidiaries, reinvestment at lower yields and cash held for large transaction mandates.
It said the benefits of integrating its expanded network were expected to become more evident in its 2027 financial performance.
On earnings quality, management disclosed that core income, comprising interest income and fees, accounted for 95.2 per cent of the Bank’s gross earnings, compared with 90.9 per cent in the corresponding period of 2025.
Group operating expenses increased by 11.8 per cent to N1.30 trillion, reflecting higher staff costs and amortisation expenses associated with the integration of businesses acquired in 2025.
