Access Holdings PLC is expanding its digital footprint and strengthening its banking footprints to accelerate revenue diversification and ensure long-term sustainable value creation for its stakeholders, according to the banking group.
This was highlighted in its recently released first half of the year (H1) report, which showed remarkable growth compared to the previous year.
In half year 2024, Access Holding says its total assets and shareholders’ equity stood at ₦36.5 trillion and ₦2.8 trillion, respectively. This represents a year to date of growth of 37.1% and 29.8%, respectively. Customer deposits increased by 31.3%, from ₦15.3 trillion in December 2023 to ₦20.1 trillion by half year 2024. Gross loans and advances also saw an increase of 37.6%, growing from ₦8.9 trillion in December 2023 to ₦12.3 trillion by half year 2024, from organic loan growth and the impact of foreign currency-denominated loans.
According to the banking group, the strong growth is evident in the resilient half year results from the banking franchise operating in 22 markets across four continents and the non-banking subsidiaries including Access Pensions, Hydrogen Payments, and Access Insurance Brokers.
The Access Bank fintech unit, Hydrogen Payments, also achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company.
Hydrogen, Access Bank’s fintech records ‘remarkable growth’
The Access Bank fintech unit, Hydrogen Payments, also achieved a remarkable 1,871% growth in top-line revenue compared to H1 2023, reflecting its exceptional performance and contribution to the profitability of the holding company.
The total payment volume (TPV) processed surged by 306%, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023. Notably, 90% of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria.
The ability of Hydrogen Payments “to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group,” Olakunle Aderinokun, Head, Media Relations, Access Holdings Plc, says in a statement.
Access Bank says it aims to speed up the completion of its technology infrastructure, noting that upgrading it “will significantly enhance operational efficiency across the group and strengthen our digital capabilities, allowing us to deliver superior services to our customers.” The bank reckons that the approach will drive operational collaborations and optimise cost.
According to the report, focusing on digital expansion will “create lasting value” for shareholders, enabling the company to capitalise on new opportunities and sustain long-term growth.
Access bank attributes its H1 2024 success to its investment in technology that has driven increased transactions from digital channels, including mobile banking and card payments, a development it sees as underscoring the importance of technology in banking.
Despite significant investments in IT upgrades and the pressures of inflation and currency devaluation, the bank says that the cost-to-income ratio (CIR) remained stable at 60.4%.
This stability was achieved as revenue growth surpassed operational costs. The report states that “cost to income was moderated as revenue outpaced operating expenses,” meaning that costs were effectively managed despite rising operational expenses. This also shows that Access Holdings PLC’s new plans to expand its digital reach are feasible, as its generated income is sufficient to cover expenses.
Furthermore, the company’s non-interest income growth increased by 117%, rising from N333.4 billion in H1 2023 to N723.6 billion in H1 2024. Fees and commissions also grew by 94% from N119.8 billion to N232.5 billion, all linked to increased usage of digital platforms for transactions.
The combination of its tech-driven efforts, particularly in digital platforms and IT infrastructure, played a key role in the company’s impressive financial results, leading to its proposed digital expansion. These technological advancements have not only helped it remain competitive but have also directly contributed to its revenue growth, particularly in digital banking and payment services.
By expanding digital capabilities and enhancing operational efficiency, Access Holdings Plc aims to create substantial value for its shareholders, customers, and employees, fostering long-term relationships and ensuring sustainable growth that benefits all parties involved.
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