Valuation now a fairer reflection of risk. We recently downgraded Access Bank to HOLD (from BUY) on account of valuation. Access Bank’s 9M 17 results, for the most part, reflect our key concerns with the bank, which are that (1) profitability remains disproportionately reliant on FX trading revenue, (2) the bank’s strong and growing deposit franchise costs much more than that of close peers, and (3) cost management compares poorly to other Tier 1 banks. These key factors translated into a weaker profit profile for the bank during the period, as detailed below. That said, Access maintains strong asset quality and capital ratios well above regulatory limits.