Tier 1 lenders earn N18.2trn in 2025

Nigeria’s largest banks posted a combined gross earnings of N18.2 trillion in 2025, reflecting steady growth in core banking activities despite a challenging macroeconomic environment and policy-induced pressures on profitability. According to audited financial statements for the year ended December 31, 2025, Tier-1 lenders recorded a 7.69 percent increase in gross earnings, up from N16.9 […]

Nigeria’s largest banks posted a combined gross earnings of N18.2 trillion in 2025, reflecting steady growth in core banking activities despite a challenging macroeconomic environment and policy-induced pressures on profitability.

According to audited financial statements for the year ended December 31, 2025, Tier-1 lenders recorded a 7.69 percent increase in gross earnings, up from N16.9 trillion reported in 2024.

Access Holdings led the pack with gross earnings of N5.52 trillion, rising from N4.87 trillion in the previous year.

Zenith Bank followed with N4.07 trillion, up from N3.82 trillion, while First HoldCo posted N3.21 trillion, slightly lower than its N3.37 trillion in 2024. United Bank for Africa (UBA) recorded N2.97 trillion compared to N3.1 trillion, and Guaranty Trust Holding Company (GTCO) reported N2.11 trillion, down marginally from N2.15 trillion.

The performance underscores the resilience of Nigeria’s banking sector, with growth driven largely by higher interest income amid a high-yield environment.

Zenith Bank nearly doubled its interest income to N2.72 trillion, while GTCO recorded a significant increase to N1.32 trillion, reflecting stronger returns on lending.

Non-interest income also expanded, supported by increased adoption of digital banking services. E-banking revenues rose to N685.5 billion from N628.4 billion, highlighting the growing importance of technology-driven channels in revenue generation.

Balance sheets strengthened significantly across the sector. Access Holdings’ total assets surged to N51.5 trillion from N41.4 trillion, while UBA and Zenith Bank recorded asset bases of N33.7 trillion and N31.4 trillion, respectively. Shareholders’ funds also rose across the board, buoyed by the recent recapitalisation exercise.

The recapitalisation drive saw Nigerian banks raise a total of N4.65 trillion in fresh capital over a two-year period, with 33 lenders meeting revised minimum capital requirements set by the Central Bank of Nigeria (CBN).

 

CBN Governor Olayemi Cardoso said the exercise has enhanced the sector’s resilience and positioned banks to better absorb shocks and support economic growth.

 

However, profitability came under pressure during the period as banks began unwinding regulatory forbearance.

 

First HoldCo’s profit after tax declined sharply to N52 billion from N663 billion in 2024, while UBA’s fell to N404 billion from N766 billion. GTCO also recorded a drop to N865 billion from N1.01 trillion. In contrast, Zenith Bank maintained stable earnings at N1.04 trillion, while Access Holdings grew its profit to N743 billion.

 

The decline in profits was largely driven by elevated loan loss provisions, reflecting the reclassification of previously shielded loans and a broader clean-up of balance sheets.

 

UBA reported provisions of N331 billion, First HoldCo’s impairments rose to N710 billion from N371 billion, while Access Holdings saw its loan impairment charges jump 209 percent to N287.3 billion.

 

However, UBA and FirstHoldco assured the investing public that this pause in dividends was impacted by prudent and forward-looking risk management decisions, a strategic clean-up exercise aimed at strengthening the group’s balance sheet and restoring confidence.

 

Despite the hit to earnings and a pause in dividend payouts by some banks, a foremost shareholders’ leader, Chief Boniface Okezie stated that the measures are part of a prudent, forward-looking strategy to strengthen financial stability and restore investor confidence.

 

However, he asked the banks to go after loan defaulters in order to strengthen their standing and return to dividends payout.

 

Market sentiment remains positive, with banking stocks driving gains on the Nigerian Exchange. At the close of trading on May 4, the NGX Banking Index rose by 0.36 percent to 2,290.78 points, contributing to a broader market rally that saw the All-Share Index climb to 243,158.97 points, with year-to-date returns at 56.26 percent.