How nine Nigerian banks earned N14.7 trillion in just nine months

Femi Fabunmi 

Nigeria’s banking sector saw a significant boost in interest income in the first nine months of 2025, with nine major banks collectively earning about N14.72 trillion.

This represents a 27.68% increase compared with N11.53 trillion recorded in the same period last year.

The banks analyzed include Access Holdings Plc (parent company of Access Bank), First HoldCo (parent of FirstBank), Zenith Bank, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Stanbic IBTC Holdings, Sterling Financial Holding Company, Wema Bank, and Ecobank Transnational Incorporated.

Key Bank Performances:
Access Holdings Plc led in total interest income, earning N2.90 trillion, up 21.11% from N2.39 trillion in the third quarter of 2024.

Zenith Bank followed closely with N2.74 trillion, marking a 40.77% increase from N1.95 trillion the previous year.

Ecobank Transnational reported N2.33 trillion, a 20% rise year-on-year.
First HoldCo earned N2.29 trillion, up from N1.63 trillion, showing strong growth momentum.

Together, these four banks accounted for the majority of the sector’s interest income. Zenith Bank and First HoldCo recorded the highest growth in absolute figures, while Wema Bank stood out with the highest percentage growth, posting a 72.65% increase to N396.95 billion from N229.91 billion the previous year.

Other notable performers include Stanbic IBTC Holdings, which grew 37.24%, and Sterling, which increased 38.73% in interest income.

Interest income for banks comes primarily from loans and advances to customers, investment securities, deposits, and other financial instruments.

The growth in income in 2025 was largely driven by sustained high interest rates, which allow banks to earn more on the money they lend and invest.

However, in September 2025, the Central Bank of Nigeria (CBN) cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, marking the first reduction in several years.

The CBN also adjusted the Cash Reserve Requirement (CRR) for commercial banks to 45% while keeping that for merchant banks at 16%.

Additionally, a 75% CRR was introduced on non-TSA public sector deposits. These changes were aimed at supporting economic growth and easing liquidity in the banking system while maintaining price stability.

Following the rate cut, credit to the private sector declined slightly, dropping to N72.53 trillion in September from N76.13 trillion in July, suggesting that borrowing activity slowed as banks adjusted to lower lending rates.

Global ratings agency Moody’s Investors Service cautioned that the lower policy rate could reduce banks’ net interest margins unless loan volumes increase to offset lower yields.

Moody’s emphasized that net interest income accounted for 62% of Nigerian banks’ operating income in 2024, meaning that any sustained decline in interest rates could affect overall profitability.

Overall, the first three quarters of 2025 show that Nigerian banks continue to benefit from high-yield lending and investments, but the recent monetary policy adjustments signal that banks may face new challenges in maintaining profitability as the economic environment changes.