NEWS
Tier-1 Banks’ Earnings Rise 5.7% to N18.4tn
Tier-1 Banks’ Earnings Rise 5.7% to N18.4tn
October 18, () – Nigeria’s five largest banking groups recorded combined gross earnings of approximately N18.4 trillion in 2025, up 5.7 percent from N17.4 trillion in 2024, as growth at Access Holdings, Zenith Bank and First HoldCo offset declines at United Bank for Africa (UBA) and flat revenue at Guaranty Trust Holding Company (GTCO).
However, revenue growth did not translate into stronger profitability across the sector. Access Holdings recorded double-digit growth in profit, while First HoldCo’s profit before tax fell 70.5 percent and UBA’s declined 47.3 percent. Zenith Bank’s pre-tax profit also weakened, while GTCO recorded lower post-tax earnings despite growth in core income.
Access Holdings recorded the highest gross earnings among the five groups, with revenue rising 13.3 percent to N5.53 trillion in 2025 from N4.88 trillion in the previous year. Profit before tax increased 16.2 percent to N1.007 trillion from N867.0 billion, while profit for the year rose 15.7 percent to N743.0 billion from N642.2 billion.
The group’s performance contrasts with those of peers whose earnings came under pressure from higher impairment charges, operating costs and weaker non-interest income. Access’s ability to grow both pre-tax and post-tax profit indicates that its increased revenue translated into higher earnings during the period.
Zenith Bank recorded a 5.6 percent increase in gross earnings to N4.19 trillion from N3.97 trillion. However, profit before tax declined 4.8 percent to N1.26 trillion from N1.33 trillion, while profit after tax edged up 0.7 percent to N1.04 trillion from N1.03 trillion.
The divergence between revenue and pre-tax profit indicates that higher earnings did not produce a corresponding improvement in overall profitability. The marginal increase in post-tax earnings also suggests that the bank’s bottom-line performance remained broadly flat.
First HoldCo, the parent company of FirstBank, recorded gross earnings of N3.435 trillion in 2025, up 6.9 percent from N3.213 trillion in 2024. Interest income rose 24.9 percent to N2.994 trillion, while net interest income increased 36.8 percent to N1.917 trillion.
Every second brings Nigerians closer to exercising their democratic right and shaping the future of our nation.
Exercise your democratic right responsibly, peacefully and lawfully.
Despite the growth in interest income, impairment charges for credit losses surged 93.8 percent to N826.3 billion from N426.3 billion. Operating expenses also increased 32.1 percent to N1.234 trillion from N934.2 billion.
Consequently, profit before tax fell 70.5 percent to N235.0 billion from N796.5 billion, while profit for the year declined 79.4 percent to N139.5 billion from N677.0 billion.
Channel
The deterioration highlights the effect of credit-loss provisions and rising operating costs on the group’s earnings. First HoldCo attributed the impairment charges partly to provisions for impaired and non-performing exposures, including exposures addressed as part of its balance-sheet clean-up. It also identified the normalisation of foreign exchange gains recorded in previous years as a factor behind the decline in profit before tax.
UBA’s gross earnings fell 3.0 percent to N3.090 trillion in 2025 from N3.187 trillion a year earlier. Profit before tax dropped 47.3 percent to N423.4 billion from N803.7 billion, while profit after tax declined 47.2 percent to N404.7 billion from N766.6 billion.
Interest income rose 9.8 percent to N2.649 trillion, while net interest income increased 4.2 percent to N1.618 trillion. However, non-interest income fell 43.1 percent to N440.9 billion from N775.2 billion, contributing to a 12.1 percent decline in operating income to N1.859 trillion. Operating expenses rose 4.7 percent to N1.106 trillion.
The figures show that growth in interest income was insufficient to offset the sharp decline in non-interest income and the contraction in operating income. The performance underscores the importance of revenue composition in determining how effectively banks convert income into profit.
GTCO recorded virtually flat gross earnings of approximately N2.150 trillion in 2025, compared with N2.148 trillion in 2024. Profit before tax declined 2.8 percent to N1.231 trillion from N1.266 trillion, while profit after tax fell 14.9 percent to N865.75 billion from N1.018 trillion.
The group reported growth in core income, including a 23.2 percent increase in interest income and a 25.9 percent rise in fee income. However, its 2024 results benefited from substantial fair-value gains that did not recur in 2025. Changes in the taxation of investment securities also affected post-tax earnings.
The results highlight the difference between recurring income growth and gains that may not be repeated. Although GTCO expanded key income streams, the absence of previous fair-value gains and the impact of taxation contributed to lower reported profits.
Overall, the five banking groups generated more revenue in 2025, but their profit performance varied considerably. Access Holdings recorded growth in both revenue and earnings, while Zenith Bank’s post-tax profit remained broadly stable. First HoldCo and UBA suffered substantial profit declines, and GTCO’s post-tax earnings weakened despite growth in core income.
For investors, the figures point to the importance of monitoring credit quality, impairment charges, operating costs and the sustainability of non-interest income alongside gross earnings. The ability to control these pressures while maintaining revenue growth will be critical to the banks’ profitability and shareholder returns in 2026.
DO YOU WANT TO WHISTLEBLOW, REPORT FRAUD, THEFT OR INJUSTICE OR INTIMIDATION? SEND US YOUR STORY/REPORT TO NEWSDESK@MEDIATODAY.NG
