Access Holdings Stock Rebounds 36% Amid Earnings Concerns

Access Holdings has emerged as one of Nigeria's largest financial institutions, boasting a balance sheet exceeding N53 trillion. Recently, its stock price rebounded approximately 36% from a 52-week low of N19.90 to N27.

However, this recovery does not fully reflect the growth compared to its tier-one banking peers. An investment of N1 million at the low price would now be worth N1.36 million, indicating a gain of nearly N357,000 or 35.7%.

If the stock reaches its 52-week high of N36, the investment could potentially grow to N1.81 million, representing an 80.9% return. Despite continued profit growth, the earnings per share have not returned to previous highs due to an increase in shares outstanding after a capital raise.

Additionally, the suspension of dividend payments has impacted investor confidence. Innocent Ike, Group Managing Director/CEO of Access Holdings, stated that the decision regarding dividends was not indicative of the bank's financial health.