Access Holdings puts disclosure, BOFIA compliance at centre...
AI Executive Briefing
Gemini Flash AI~45s readAccess Holdings Plc is actively realigning its business operations to meet regulatory compliance standards, specifically the BOFIA requirement regarding subsidiary investment limits. Despite reporting a profit before tax of N667.36bn, the group is addressing performance gaps and working to improve operating efficiency and shareholder returns.
Context & Background
- ✦The Central Bank of Nigeria (CBN) mandates that investments in subsidiaries must not exceed 10% of shareholders' funds under Section 19(8)(c) of BOFIA.
- ✦Access Holdings is currently navigating a transition period involving capital recalls and minority stake sales to ensure regulatory alignment by March 2027.
Key Figures & Named Entities
•Innocent Ike, Group Managing Director, emphasized the need for progress in operating efficiency and shareholder returns.•Roosevelt Ogbonna, Access Bank Managing Director, confirmed capital recalls are ongoing across seven markets.•The group's investment in subsidiaries was reported at N446.6bn, or 19.29% of shareholders' funds.
Outlook & Next Steps
The group is executing a capital recall program across seven markets and pursuing minority stake sales, with a target to achieve a return on equity above 20% in 2027.
Key Takeaways
AI Summary- Access Holdings is restructuring its subsidiary investments to comply with the BOFIA 10% limit on shareholders' funds by the March 2027 deadline.
- The group reported a profit before tax of N667.36bn for the nine months ended September 2026, though several key performance indicators fell short of full-year guidance.
- Strategic measures to meet regulatory requirements include capital recalls from seven markets and the sale of minority stakes in selected international subsidiaries.
Key Facts:November 5, 2026: Access Holdings reported its investment in subsidiaries at N446.6bn, exceeding the 10% limit set by BOFIA.March 2027: The group must bring its subsidiary investment ratio within the statutory 10% limit.January 7, 2027: Access Holdings faces a call date for a perpetual bond.
Editorial Excerpt
Access Holdings Plc has placed regulatory compliance, transparency and shareholder returns at the centre of its business priorities as it works to address gaps...
Frequently Asked Questions About This Story
Why is Access Holdings recalling capital from its subsidiaries?
The group is recalling capital to comply with Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA), which limits investment in subsidiaries to 10% of shareholders' funds.
What is the status of the group's dividend payments?
The group has satisfied Section 7.1 of the CBN’s financial holding company guidelines, but future dividend payments remain dependent on BOFIA compliance, board recommendation, and CBN approval.
