Access Bank (Ghana) PLC has posted a sharp decline in profitability for the first quarter of 2026, sending a strong signal across Ghana’s banking industry as weakening non funded income and rising credit risks begin to test the resilience of lenders in a lower interest rate environment.
The bank’s latest unaudited financial statements for the period ending March 31, 2026, show that profit after tax dropped by 38 percent to GH¢113.9 million, compared to GH¢182.6 million recorded in the same period in 2025. Profit before income tax also fell significantly to GH¢175.3 million from GH¢280.9 million a year earlier.
The disappointing performance comes despite continued expansion in loans, asset growth, and stronger trading income, highlighting the growing pressure on banks to diversify income streams as market conditions evolve.
Fee and Commission Income Takes a Major Hit
The biggest shock to the bank’s earnings came from a sharp decline in fee and commission income, one of the institution’s key revenue drivers.
Net fee and commission income plunged by GH¢100.7 million, falling from GH¢233.8 million in the first quarter of 2025 to GH¢133.1 million in the same period this year.
Industry analysts say this decline reflects slower transactional volumes, weaker corporate deal activities, and changing customer behavior in the digital banking space, where competition among financial institutions continues to intensify.
The collapse in this segment significantly reduced the bank’s ability to offset softer interest income, placing greater pressure on overall earnings.
Lower Interest Rates Squeeze Revenue
Interest income also declined during the quarter, reflecting the impact of Ghana’s changing monetary environment.
The bank recorded interest income of GH¢317 million, down from GH¢384.5 million in the same period last year. The decline mirrors the lower yield environment created by the easing monetary cycle implemented by the Bank of Ghana.
However, there was some relief on the funding side.
Interest expenses also declined, helping net interest income remain relatively stable at GH¢134.6 million, compared with GH¢136.2 million a year earlier.
While this stability offered some support, it was not enough to compensate for the sharp fall in non interest income.
Trading Gains Offer Temporary Relief
One of the few bright spots in the quarter was the bank’s trading business.
Net trading income rose by 29 percent to GH¢75.3 million from GH¢58.3 million in the corresponding period last year.
This improvement reflects stronger treasury operations and effective positioning in financial markets, allowing the bank to capitalize on market opportunities.
Even so, the gains could not fully offset the broader revenue weakness.
Total operating income fell to GH¢353.6 million from GH¢450.8 million in the first quarter of 2025, representing a significant contraction in overall income generation.
Loan Book Expands Despite Profit Pressure
Despite the weaker earnings performance, Access Bank continued to expand its lending activities.
Loans and advances to customers increased by 27 percent to GH¢4.63 billion, up from GH¢3.63 billion in March 2025.
The expansion signals the bank’s continued confidence in Ghana’s economic recovery and its strategy to support businesses and households with credit.
Total assets also grew strongly to GH¢19.76 billion, compared with GH¢18.25 billion a year earlier.
Investment securities posted notable growth, rising to GH¢7.64 billion from GH¢5.54 billion, suggesting an increased allocation toward relatively stable investment instruments.
Customer deposits remained broadly stable at GH¢14.70 billion, compared with GH¢14.47 billion in the previous year.
This reflects sustained customer confidence in the bank despite the earnings decline.
Asset Quality Raises Concern
While growth remains impressive, asset quality showed signs of deterioration.
The bank’s non performing loan ratio rose sharply to 4.77 percent from 2.59 percent in the first quarter of 2025.
This increase points to rising credit risk exposure as the bank expands its lending portfolio.
Analysts note that rapid loan growth often comes with higher monitoring requirements, and banks must strengthen recovery mechanisms to maintain portfolio quality.
The capital adequacy ratio also slipped to 18.60 percent from 19.82 percent.
Although lower, the ratio remains comfortably above regulatory requirements, indicating that the bank still maintains a healthy capital buffer.
Liquidity remained solid, with the liquidity ratio standing at 71.34 percent, slightly below the 71.77 percent recorded a year earlier.
Importantly, the bank reported no statutory liquidity defaults and no regulatory sanctions during the reporting period.
Equity Position Remains Strong
Despite the profit slump, shareholders’ funds continued to improve.
Total equity rose to GH¢2.16 billion from GH¢1.94 billion in March 2025.
This demonstrates that the bank’s long term financial foundation remains intact, even as short term earnings face pressure.
The results were signed by Board Chairperson Ama Sarpong Bawuah and Managing Director Pearl Nkrumah, underscoring management’s continued oversight during a challenging operating period.
As a subsidiary of Access Holdings PLC, the bank remains strategically positioned within one of Africa’s largest banking groups.
However, the latest results suggest that restoring fee based income and managing rising loan risks will be critical in determining its performance for the rest of 2026.
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