By Aduragbemi Omiyale
The management of Access Holdings Plc intends to pay special attention to its non-banking segments in the second half of 2024.
The flagship banking subsidiary of the group has enjoyed the spotlight within the organisation, particularly with its expansion drive across Africa.
This time, it is the turn of the other businesses of Access Holdings in the fintech, pension, asset management and other sectors.
The firm believes its non-banking segments will create lasting value for shareholders, position Access Holdings to capitalise on emerging opportunities and sustain growth in the long term.
“Our strategic priorities will remain focused on scaling non-banking segments, expanding our digital footprint, and solidifying our presence in high-growth African and international markets.
“These are geared towards accelerating revenue diversification and ensuring long-term sustainable value creation for our shareholders,” the group stated in a statement issued to comment on its audited financial statements for the first half of the year.
In the period under review, the non-banking subsidiaries demonstrated a consistent growth trajectory, with Access Pensions recording a 162.1 per cent rise in Assets Under Management (AUM), rising from N1.1 trillion in December 2023 to N2.9 trillion in the first half of 2024, driven by organic expansion in RSA accounts, new mandates, and synergies from the merger with ARM Pensions.
As a result, Access Pensions has positioned itself as one of the top two largest pension fund administrators (PFAs) in Nigeria, with over 2.8 million RSA accounts.
Furthermore, the operating income for the pension business saw a substantial increase of 190 per cent, climbing from N5.6 billion in H1 2023 to B16.2 billion in H1 2024.
Also, Hydrogen Payments achieved a remarkable 1,871 per cent 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 per cent, reaching N13.8 trillion in H1 2024, up from N3.4 trillion in H1 2023.
Notably, 90 per cent of these transactions were processed through the Hydrogen switching platform, underscoring its reliability and dependability, particularly for small businesses across Nigeria.
The platform’s ability to handle large transaction volumes with minimal downtime has significantly improved operational efficiency, contributing to a stronger profit outlook for the group.
Between January and June 2024, Access Insurance Brokers posted significant growth with an 83 per cent increase in gross premiums written and a 60 per cent rise in commission income in the first year of operations, with the gross written premiums surging from N2.3 billion to N5.9 billion by half year 2024.
