Access Bank UK overtakes Nigeria as biggest earnings contributor for first time – Businessday NG

Access Holdings’ United Kingdom subsidiary has become the group’s largest earnings engine for the first time, surpassing its Nigerian operations in the first quarter of 2026. Stronger foreign income, buoyant trade flows, and the bank’s expanding international footprint helped offset pressures in the domestic market and lifted overall profitability.

UK subsidiary surges on trade finance and cross-border flows

Access Bank UK Limited delivered a standout quarter, with profit after tax rising by 73.5 percent to N83.8 billion from N48.3 billion a year earlier. Operating income nearly doubled to N175.5 billion from N87.4 billion, underscoring the impact of deepening trade-finance activity and increased client flows across Africa–Europe corridors.

In contrast, profit from the Nigerian operation eased to N52 billion from N79.9 billion in the same period, reflecting a tougher operating backdrop at home. Even so, group net profit advanced to N216.5 billion from N182.8 billion, supported by the UK unit’s momentum and contributions from other African subsidiaries.

• Access Bank UK’s share of group earnings in the quarter: 38.7 percent
• Nigeria’s share of group earnings in the quarter: 24 percent
• Group net profit: N216.5 billion (up from N182.8 billion)

Analysts note that the group’s long-running strategy has been to scale non-Nigerian businesses faster, not because the domestic franchise is weakening, but to achieve a more balanced, resilient earnings mix. Within this framework, the UK operation functions as a trade and payments hub for the group, anchoring structured trade solutions across major African markets.

The emphasis on trade finance is central to this outperformance. Major Nigerian lenders, including Access Bank, are active in financing import–export flows, providing facilities and guarantees that underpin commerce. Growing UK–Africa trade volumes have amplified this opportunity set: total trade between the UK and Nigeria reached a record £8.1 billion in the third quarter of 2025, up 11.4 percent year-on-year and the highest in a decade. Over the four quarters to Q3 2025, UK exports to Nigeria climbed 14.2 percent to £5.7 billion, while imports from Nigeria rose 5.1 percent to £2.4 billion, resulting in a trade surplus of £3.4 billion for the UK, compared with £2.8 billion a year earlier.

Diversification gains pace as earnings mix shifts

Access Holdings’ earnings structure has been shifting steadily. Nigeria’s contribution to group pre-tax profit fell to 37 percent in the first nine months of 2025 from 61 percent in the same period of 2023 — the lowest share in at least three years. Over that timeframe, combined contributions from other African subsidiaries rose to 35 percent, while the UK and other international businesses accounted for 28 percent.

The balance sheet tells a similar story. Africa’s share of total group assets grew to 21 percent from 12 percent, and international assets increased to 32 percent from 13 percent. Nigeria’s share of total assets dropped to 47 percent from 75 percent, highlighting the scale of the group’s diversification push and the growing relevance of ex-Nigeria operations.

Capital rules catalyze regional push

Domestic regulatory changes have also influenced strategy. In March 2024, the Central Bank of Nigeria (CBN) raised minimum capital requirements, mandating N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks. Access Holdings moved early to comply, raising N351 billion in December 2024 and becoming the first lender to meet the new threshold. Market participants say a broader expansion outside Nigeria complements this environment by spreading risk and capturing faster-growing profit pools across the continent and beyond.

Acquisitions and regulatory fine-tuning shape the next phase

Acquisitions have been pivotal in accelerating Access Holdings’ international reach. The group completed the purchase of assets from Standard Chartered Bank’s Gambian subsidiary, while Access Bank UK acquired a 76 percent stake in Mauritius-based AfrAsia Bank. It also finalized the acquisition of National Bank of Kenya from KCB Group. In first-quarter reporting, Access Bank UK recognized provisional goodwill of N16.3 billion tied to the AfrAsia transaction, reflecting fair value adjustments on acquisition; the purchase price allocation is expected to be finalized within 12 months of the deal date.

At the same time, new CBN guidelines are prompting portfolio adjustments. The regulator has capped banks’ equity exposure to foreign subsidiaries at 10 percent of shareholders’ funds and temporarily paused new foreign investments, allowing a 12‑month window for compliance. Access Holdings disclosed a current exposure of 19.4 percent and is evaluating selective divestments to meet the new threshold while retaining control and preserving value creation across key franchises.

On the funding side, the bank is considering refinancing a $500 million Eurobond maturing in September, primarily to extend debt maturities rather than address liquidity needs. A decision is also pending on options for a $500 million perpetual bond due in October, with updates expected later this month.

Outlook

Access Bank UK’s rise to the top of the group’s earnings table underscores how trade finance, cross-border connectivity, and disciplined expansion can reshape a bank’s profit engines. With regulatory changes at home, a deepening African footprint, and an increasingly central UK hub, Access Holdings appears set to pursue a more geographically balanced business model — one that continues to reduce concentration risk in Nigeria while leveraging scale across Africa and international markets.