Fitch Ratings has affirmed Access Bank Plc‘s Long-Term IDR at ‘B’ with a Stable Outlook and its National Long-Term Rating at ‘AA-(nga)‘, removing it from Rating Watch Positive.
Fitch affirmed Access Bank’s rating, citing its strong domestic franchise and broad African diversification, but noted concerns about its capital adequacy, profitability, and foreign currency liquidity relative to higher-rated peers. Profitability also weakened as operating returns on risk-weighted assets fell to 4.2 per cent in 2025, down from 5.6 per cent in 2024.
Fitch Ratings also noted Access Bank’s ‘b’ standalone viability rating, citing its significant exposure to the Nigerian sovereign and thin capital buffer. The bank’s capital position may face further strain due to the anticipated call of its $500 million Additional Tier 1 notes in October 2026.
Fitch explained that Access Bank’s standalone capital adequacy ratio stood at 17.4 per cent in the first quarter of 2026, only slightly above the regulatory minimum requirement of 15 per cent. The agency stated that redeeming the AT1 instrument could reduce core capital because the notes are accounted for at a pre-devaluation exchange rate.
The agency added that Access Bank has already raised Tier 2 capital and plans to strengthen its capital base further through retained earnings and internal capital generation.
Fitch also highlighted the impact of the bank’s acquisition of AfrAsia Bank Ltd in 2025, noting that the transaction improved Access Bank’s operating environment assessment and enhanced asset quality due to the Mauritian lender’s sizeable investment-grade asset portfolio.
However, the consolidation of AfrAsia Bank significantly increased risk-weighted assets, leading to a decline in Access Bank’s Fitch Core Capital ratio to 16.8 per cent in 2025 from 21.1 per cent in the previous year.
The agency said Access Bank remains Nigeria’s largest banking group, accounting for 14.4 per cent of total banking sector assets at the end of the first half of 2025. The bank currently operates subsidiaries in 16 other sub-Saharan African countries, supporting its regional diversification strategy.
Fitch noted that Access Bank’s investments in foreign subsidiaries currently exceed the regulatory limit of 10 per cent of standalone shareholders’ funds, restricting dividend payments. The bank plans to dilute stakes in some subsidiaries to restore compliance with regulatory requirements.
On asset quality, Fitch said the impaired loans ratio remained stable at three per cent in 2025, while Stage 2 loans declined significantly to 4.5 per cent from 8.4 per cent in 2024 following the expiration of regulatory forbearance and subsequent loan write-offs.
Despite the stable asset quality metrics, Fitch said profitability weakened as operating returns on risk-weighted assets fell to 4.2 per cent in 2025 from 5.6 per cent a year earlier due to elevated impairment charges and increased funding costs.
The rating agency also observed that Access Bank faces substantial upcoming debt obligations, including the $500 million AT1 instrument callable in October 2026 and a $500 million senior unsecured Eurobond maturing in September 2026.
