In a remarkable tale of ambition and strategic expansion, Access Holdings has catapulted itself to the top of Nigeria’s banking landscape, becoming the country’s largest bank by total assets. Founded over two decades ago, the bank’s meteoric rise to prominence was spearheaded by its visionary leadership, who dared to dream big. With a proven track record of achieving ambitious goals, having risen from 80th to 10th position in Nigeria’s banking sector in just three years, Access Holdings has set its sights on the broader African market. Through a series of strategic acquisitions and calculated risks, the bank has successfully expanded its footprint, solidifying its position as a continental banking powerhouse. As Access Holdings continues to push the boundaries of its growth, its sights are firmly set on becoming one of the top 5 banks in Africa.
But the chasm between corporate image and substance starkly illustrated in the case of Access Holdings, where grandiose appearances belie underlying challenges is raising heated concerns . Despite its meteoric rise to become Nigeria’s largest bank by total assets, the company’s recent performance raises questions about the alignment between its ambitious pursuits and operational realities. While Access Holdings’ expansive reach and prominent brand may project an aura of success, a closer examination reveals potential disparities between strategic decisions, innovation, and operational efficiency. As the company continues to pursue its ambitious goals, the disconnect between its aspirational image and fundamental performance may ultimately determine whether its growth is built on solid ground or fragile facade.
The problem with Access Holdings is clear: Hat head but a dull brain. The bank grew its assets and revenue to become the industry leader but a laggard in profitability and associated value creation. First, let’s go its assets and revenue leadership .No doubt about it , Access Holdings’ strategic acquisition spree has yielded impressive results with the bank emerging as the biggest in the industry in terms of assets. Its 2024 full-year figures confirm this, showcasing its significant growth across key metrics. The bank’s total assets surged by 55.5% to ₦41.498 trillion, driven by a robust deposit mobilization strategy, with customer deposits rising by 47% to ₦22.525 trillion. Access Holdings’ half-year 2025 results demonstrate continued growth, with total assets reaching ₦42.447 trillion and customer deposits hitting ₦22.905 trillion.
Access Holdings has continued to justify its asset superior position over other players in the industry , raking in the biggest revenue continually. At the end of 2024 financial year, its gross earnings skyrocketed by 88% year-on-year to ₦4.878 trillion, while shareholders’ funds grew by 72% to ₦3.760 trillion. No other bank hit that height.
But what is the essence of having a big head with a dull brain?Access Holdings, Nigeria’s largest bank by assets, is facing a valuation gap with its peers despite its aggressive expansion strategy that delivered the above asset advantage over others. The bank’s market capitalization and share price continue to raise questions as its price-to-earnings and price-to-book ratios reveal a valuation that is substantially lower than that of its peers; its performance metrics and industry trends raise questions about the company’s ability to stay competitive in a rapidly evolving market.
A comparison of Access Holdings, Guaranty Trust Holding (GTCO), and Zenith Bank reveals interesting insights into their relative performance. Access Holdings’ valuation lags behind its peers just as it ranks last in terms of the price-to-earnings (P/E) and price to book multiples despite its size advantage.
Access Holdings’ stock price in absolute term remains far below its peers among tier 1 banks .Currently , it is trading price at NGN 24.45. It registered a 2.20% decline over the last week and a 7.74% drop over the last four weeks, although the company’s long-term performance has been positive, with an 11.14% increase in stock price over the past year. In comparison, GTCO’s stock price has been more impressive, with a 57% gain year-to-date and a 61.84% increase over the past year, trading at NGN 89.50.
Other Tier 1 banks are equally displaying their superior power over Access Holdings . Zenith Bank’s stock price has also demonstrated strong growth, with a 38.5% gain year-to-date and a 57.89% increase over the past year, trading at NGN 63.00; First HoldCo Plc (FIRSTHOLDCO) demonstrated a relatively stable performance in the Nigerian stock market, with its shares trading at NGN 31.50. Despite a 0.6% drop from its previous closing price of NGN 31.70, the company’s year-to-date performance remains positive, with a 12.3% gain since the beginning of the year.
United Bank for Africa (UBA) with its shares trading at NGN 40.05 confirms the investors preference compared to Access. The bank recorded a 0.8% gain over its previous closing price, closing at NGN 40.05 on October 31, 2025. Despite this recent gain, UBA’s year-to-date performance remains positive, with a 17.8% gain.
In terms of market capitalization, GTCO leads with a market capitalization of approximately NGN 2.84 trillion or NGN 3.26 trillion, followed by Zenith Bank with a market capitalization of approximately NGN 2.59 trillion while Access Holdings lags behind with a market capitalization of approximately NGN 1.28 trillion.
Key valuation metrics also follow the above trends with Access Holdings remaining a laggard .The stock valuation of Access Holdings, Guaranty Trust Holding Company (GTCO), and Zenith Bank presents an interesting comparison. Let’s dive into the key metrics that can help investors make informed decisions.
. The price-to-earnings (P/E) ratio of 1.94 and price-to-book (P/B) ratio of 0.36 indicate that investors are buying the company’s stock at a discount to its earnings and book value. This could present a buying opportunity for investors looking to capitalize on the company’s strong financial performance and growth prospects.To some analysts, Access Holdings’ valuation metrics suggest that the stock might be undervalued compared to its earnings and book value
GTCO’s valuation metrics, on the other hand, present a mixed picture. The P/E ratio ranges from 4.6x to 6.55x, depending on the source, while the P/B ratio is approximately 0.74x to 1.0x. This suggests that investors are willing to pay a premium for GTCO’s earnings, while the stock is trading close to its book value. With a strong presence in the Nigerian banking sector and a history of delivering robust financial results, GTCO’s stock might be an attractive investment opportunity for those looking for value.
Zenith Bank’s valuation metrics indicate that the stock might be undervalued compared to its peers and the sector average. The P/E ratio of approximately 2.6x and P/B ratio of around 0.6x suggest that investors are valuing Zenith Bank’s earnings and book value at a discount. This could present a buying opportunity for investors looking to capitalize on the bank’s strong financial performance and growth prospects. n.
However , beyond the crucial metrics of undervaluation and overvaluation, investors must also consider a multitude of factors that can significantly impact a company’s stock price and valuation. These include market sentiment and investor emotions, economic conditions and industry trends, company-specific factors such as management quality, financial health, and competitive position, as well as macroeconomic factors like interest rates and inflation. Additionally, investors should scrutinize industry-specific challenges and opportunities, regulatory changes, quality of earnings, growth prospects, market competition, and external factors such as geopolitical events and global economic trends. By looking beyond simple valuation metrics, investors can gain a more comprehensive understanding of a company’s potential for long-term success and make more informed investment decisions.
The above issues are what the leadership of Access Bank is expected to address .Unfortunately, the bank is more engrossed by resource accumulation as against resourcefulness .In its recent facts behind the figures presentation for its planned N350 billion rights issue held at the NGX, the bank’s managing director and chief executive Roosevelt Ogbonna stated that the bank is not only the largest lender in the country by total assets, loans and advances, and deposits, but is also the ‘fastest growing bank’ on the continent.
But growing assets or organisation by acquisition spree is a no brainier strategy. Two banks , Zenith Bank and GTCO understand this better .While Zenith Bank grew its assets too ,but more organically, GT prioritizes resourcefulness over resources. As of the end of the 2024 financial year, Zenith ‘s total assets stood at an impressive N30 trillion, underscoring its dominant position in the banking industry.Zenith Bank has demonstrated remarkable financial strength, growing organically to challenge Access Bank acquisition mentality . Customer deposits totaled N22 trillion, reflecting the bank’s strong customer base and trust. Zenith Bank’s shareholders’ funds stood at approximately ₦4.03 trillion as at the end of the 2024 financial year. Zenith bank’s gross earnings for the year reached N3.97 trillion, showcasing its ability to generate revenue across various business lines within the same period in 2024. From the above analysis, Access Holdings leads the industry by assets and revenue in absolute terms ,but Zenith Bank is close matching it. Moreover, unlike Access, Zenith has continued to balance its assets growth with resourcefulness
Guaranty Trust Holding Company (GTCO) Plc has demonstrated remarkable growth and financial strength, as evident from its full-year results for 2024 but more by superior profit machine than by resource growth. The company’s total assets surged by 52.7% to ₦14.80 trillion, driven by a significant increase in customer deposits, which rose by 37.8% to ₦10.40 trillion. GTCO’s shareholders’ funds also witnessed substantial growth, reaching ₦2.71 trillion. The company’s net loans and advances to customers stood at ₦2.79 trillion, reflecting its commitment to supporting the growth of its customers’ businesses. These impressive results underscore GTCO’s strong market position and its ability to navigate the dynamic banking landscape effectively.
Access Bank Leadership Dangerous Misconceptions As Its Rivals Joker
But Access Holdings notion that starting resource positions dictate future industry leadership is a misconception. Companies can possess vast resources, including financial wealth and talented personnel, yet still lose their prominent position. Conversely, firms with limited resources can overcome significant handicaps and achieve industry leadership through resourcefulness, which stems from a deeply felt sense of purpose, a shared dream, and a compelling vision of future opportunities. Strategic intent, the emotional and intellectual driving force behind a company’s journey, is what sets successful organizations apart. It creates a deliberate misfit between current resources and aspirations, pushing the organization to stretch beyond its existing capabilities. By embracing this approach, companies can unlock their full potential and achieve greatness, proving that getting to the future first is more about resourcefulness than resources.
The Wiser Peers Options
Zenith and Guaranty Trust Holding Company, GTCO are wiser . They grow more organically and prioritize resourceful over mere resources accumulation. Their choices may not be farfetched. While an acquisition as a strategy could yield impressive growth, it also poses significant challenges . A reliance on big, bold acquisitions as a means of corporate regeneration poses significant dangers. Rather than fostering genuine growth and innovation, acquisitions often serve as a shortcut for senior executives lacking the intellectual rigor to envision a prosperous future for their core business. The harsh reality is that few acquisitions benefit the acquiring company’s shareholders, yet this strategy remains a tempting escape route for executives who shy away from the challenge of discovering new ways to leverage existing capabilities. By prioritizing acquisitions over industry foresight and organic growth, companies risk undermining their long-term potential and neglecting the development of sustainable competitive advantage
Profit Engine: The Critical Success Factor Employed By the Rivals
A critical challenge confronting Access; leadership is its inability translate its huge resources and revenues to consummate profit. The issue is that how profitable a company is depends on the quality of its profit engine,the underlying logic and key drivers that enable a company to create value and generate profits that encompasses deep-seated beliefs about the business, what is delivered to customers, how money is made, critical assets and skills, and competitors.
A company’s profit engine is crucial in defining its fortunes, and it’s essential to constantly assess and adapt to industry trends, technological advancements, and changing customer needs to maintain efficiency and competitiveness. Failure to do so can lead to stagnation and eventual obsolescence, as seen in the case of companies that fail to evolve. By understanding and innovating their profit engine, companies can create a sustainable competitive advantage and achieve long-term success.
ACCESS HOLDINGS:THE BIGGEST, TURNS LAGGARD
A comparative analysis of Access Holdings profitability in 2024 financial year indicates its leadership misplaced ambition on the road to the industry leadership . Access Holdings’ 2024 financial results show a 4% increase in profit after tax to N642.2 billion, despite having massive assets and revenue. . Its 14% net profit margin suggests that the company’s costs are relatively high, eating into its profits; Its return on equity (ROE) of 17.1%, and the return on assets (ROA) of 1.55% are below what it’s rivals recorded , indicating its leadership ineptitude; the company’s operations are less relatively efficient, with a cost-to-income ratio of 56.8%relative to its rivals lower figures.
Even its relatively higher interest expense of 63.6% of interest income) and significant impairment charge (38.2% of profit after tax) are concerns.Access Holdings’ earnings per share (EPS) stood at N16.71 in 2024, down from N17.23 in 2023, indicating a slight decline in profitability per share despite the company’s overall profit growth.. All the above figures confirm its laggard position relative its peers and its inability to justify its size advantage delivered its acquisition spree.
When Access Holdings , the so called biggest bank with assets almost three times that of GTCO and two times greater revenue is compared with GTCO, one needs no further explanation to say its acquisition spree is miserable endeavor . There is nothing unusual about growing assets but a player must be resourceful as well . Zenith Bank with huge assets and revenue like GTCO delivered competitive profit to justify them. The inability of Access Holdings to live up to the above expectations is what its more savvy rivals have continued to exploit at expense of it . Zenith Bank’s profit before tax (PBT) was N1.3 trillion, and profit after tax crossed the trillion-naira mark to hit was N1.03 trillion at the end of 2024 financial year .This is a big confirmation to the saying that bigness without stretch and leverage is obesity just as smallness without stretch and leverage is impotence.
GTCO proved the above fact better to Access Holdings leadership. GTCO, has demonstrated robust financial performance, with its total assets standing at N14.8 trillion, underscoring its strong market position. The bank’s shareholders’ funds reached N2.7 trillion, highlighting its solid capital base and ability to absorb potential losses. GTCO’s loan book grew by 12.3% to N2.79 trillion, driven by strategic lending initiatives. Deposit liabilities surged 37.8% to N10.40 trillion, reflecting increased customer confidence and trust in the bank .
Despite the fact that it’s asset was less than N15trillion , about a third of what Access Holdings controlled, its capability to translate earning to profit more efficiently confirms its highly superior profit engine.GTCO’s financial performance for the 2024 fiscal year showcases remarkable growth and resilience, with gross earnings reaching N2.148 trillion, an 81.07% year-on-year increase. The bank’s profit before tax (PBT) surged 107.8% to N1.266 trillion, while profit after tax (PAT) rose 88.4% to N1.017 trillion.
GTCO demonstrated its superb profit engine with certain profitability ratios, unlike Access. The company’s EPS was N35.44, indicating a significant increase in profitability per share. Its ROE was 37.5%, which showed that the company generated strong returns for its shareholders. The company’s ROA was 6.9%, indicating effective use of assets to generate profits, and its net profit margin was 48.1%, highlighting its ability to maintain profitability.
The company’s cost-to-income ratio was 19%, indicating efficient operations and cost management. The company’s interest expense to interest income ratio was 21.1%, indicating a relatively low interest burden. The company’s impairment charge was N136.7 billion, which accounted for 13.4% of profit after tax. While this was a significant amount, it was a manageable portion of the company’s overall profit.
GTCO’s financial performance in 2024 demonstrated the company’s strong revenue generation capabilities, efficient operations, and effective risk management. With a strong capital base and liquidity position, the company was well-positioned to support its customers and drive growth initiatives. The company’s ability to maintain profitability amidst challenging economic conditions was a testament to its resilience and strategic positioning
The Key Challenges Before Access Leadership
The low valuation despite the bank’s growth raises several questions about investor sentiment and market perception. While Access Holdings has expanded its assets and footprint across Africa, these achievements have not translated into higher market valuation. The disparity is perplexing given the bank’s impressive growth trajectory and operational achievements. The answer may lie in a combination of factors, including high debt levels, relatively lower dividend payouts, and perhaps lingering concerns over the sustainability of its aggressive expansion strategy.
High debt burdens and integration costs associated with the acquisitions have continued to make the strategy an albatross of sorts. Access Bank’s aggressive expansion strategy has seen the bank make substantial financial investments in various acquisitions, significantly increasing its operational footprint across Africa and beyond. In 2024, the bank spent N252.83 billion on strategic acquisitions, including ARM Pensions and Atlas Mara Bank in Zambia.
This trend continued with the recent acquisition of Bidvest Bank for approximately $159 million and the National Bank of Kenya for about N179.1 billion (US$109.6 million). Additionally, Access Bank secured a 76% stake in AfrAsia Bank, further solidifying its presence in key markets.
These strategic moves have not only expanded the bank’s reach to 20 countries in Sub-Saharan Africa, Europe, and the Middle East but also reinforced its commitment to becoming the World’s Most Respected African Bank. With a total of 14 acquisitions across eight countries, including Kenya and South Africa, Access Bank is poised to drive commerce and prosperity through its diverse and robust financial services.
Access Holdings’ high debt levels, with over N3.1 trillion in debt securities and interest-bearing debts, have strained its shareholders’ funds and impacted dividend payouts. The bank’s valuation is also relatively low compared to its peers, with a price-to-earnings (P/E) ratio of 1x and a price-to-book (P/B) ratio at a 70% discount to book value.
Access Bank founders always had an ambition of taking the bank to the number one position in terms of total assets. This means the focus would always be on organic and inorganic growth, requiring that it acquire just about any financial institution that fits its growth plans. Proponents of aggressive growth often suggest the tradeoff for lower profits lies in a brighter future, which is why they often have high valuation multiples. However, this is not the case for Access Corporation. It has continued to deliver profits every year, but its valuation has remained subdued in most parameters, especially when compared to its peers.
Perhaps where it may be lagging is in dividend payouts. Access Bank averages a paltry 23% in average (5 years) dividend payout ratio (per Nairalytics data), one of the least when compared to its tier-one peers. The bank knows this well and tried to address it in its facts behind the presentation of the figures, where Roosevelt claimed other banks that “pay big dividends have zero positive NPV projects,” alluding that its inability to compete in the area of dividends is because it has been investing in projects of the future that will deliver dividends.
The bank stated they were now in the consolidation stage of their growth plan, suggesting the era of mergers may be coming to a slow end. It appears the bank has realized valuation still matters to shareholders despite its aggressive growth strategy. Another plausible reason why the bank is likely undervalued could be its low shareholder yield, which indicates whether a company is returning enough value to its shareholders. It is the combination of cash dividends paid, share buybacks, and debt repayments as a ratio of a company’s market valuation.
While Access Bank ranks high in terms of dividend yield, it ranks low in terms of shareholder yield largely because of its large debt accumulation. Access Holdings is the most leveraged financial institution in Nigeria with over N3.1 trillion in debt securities and interest-bearing debts compared to a net asset of N2.46 trillion. Thus, while it has expanded rapidly in assets, most of its acquisitions have been funded by debt, which will come at a cost to shareholder return.
Achieving that status requires more than aggressive acquisitions and balance sheet expansion; it demands a clear strategy for enhancing shareholder value. As Access Holdings proceeds on its massive rights issue, the jury will be out on the management’s ability to deliver returns to shareholders in terms of share price valuation and superior returns.
Access Holdings, the parent company of Access Bank, has been on a remarkable acquisition spree, signaling its ambition to become a dominant pan-African bank. Through strategic deals worth hundreds of millions of dollars, the bank has expanded its footprint across the continent, solidifying its position as a leading financial services provider. Recent acquisitions, including National Bank of Kenya, Standard Chartered’s operations in Tanzania, Angola, Sierra Leone, and The Gambia, as well as stakes in AfrAsia Bank and Finance Trust Bank, demonstrate the bank’s relentless pursuit of growth and expansio
