Nigeria’s banking industry recorded combined gross earnings of N18.2tn in the 2025 financial year, reflecting the sector’s continued resilience despite mounting economic pressures and a noticeable decline in profit margins among several major financial institutions.
Fresh analysis of the audited financial statements released by leading commercial banks showed that while revenues improved significantly, profits came under pressure due to rising impairment charges, stricter regulatory adjustments, and the gradual withdrawal of forbearance measures previously introduced by the Central Bank of Nigeria.
The latest earnings figures highlight the mixed fortunes currently shaping the Nigerian banking sector. On one hand, lenders benefited from elevated interest rates, strong digital banking growth, and increased customer transactions. On the other hand, banks faced substantial credit risk exposures and higher provisioning requirements that affected bottom-line performance.
Combined gross earnings across the country’s top banks rose from N16.9tn recorded in 2024 to N18.2tn in 2025, representing a growth of approximately 7.7 per cent. Analysts said the performance reflects the ability of Nigerian banks to maintain strong operational capacity despite inflationary pressures, foreign exchange volatility, and changing monetary conditions.
Access Holdings emerged as the highest revenue-generating banking group during the period under review. The financial institution increased its gross earnings from N4.87tn in 2024 to N5.52tn in 2025, further strengthening its position among Nigeria’s largest banking groups.
Zenith Bank followed closely with gross earnings rising from N3.82tn to N4.07tn, while First HoldCo posted earnings of N3.21tn. United Bank for Africa generated N2.97tn, while Guaranty Trust Holding Company recorded N2.11tn in gross earnings.
Industry experts attributed the strong revenue performance largely to the prevailing high interest-rate environment, which significantly boosted interest income across the sector. The Central Bank’s tight monetary policy stance over the past year contributed to increased lending yields and stronger returns on financial assets held by banks.
Zenith Bank nearly doubled its interest income to N2.72tn during the financial year, while GTCO generated N1.32tn from interest-related earnings. Analysts noted that the increase reflected improved earnings from loans, treasury instruments, and other interest-bearing assets.
Digital banking operations also continued to play a major role in the industry’s revenue growth. Banks generated increased income from electronic transactions, mobile banking services, card payments, and digital transfer channels as millions of Nigerians relied more heavily on technology-driven financial services.
Collective e-banking revenue across the banking sector rose to N685.5bn compared to N628.4bn recorded in the previous year. Financial analysts said the trend demonstrates how Nigerian banks are increasingly shifting toward transaction-based income and technology-led service delivery to improve operational efficiency and customer engagement.
Beyond earnings growth, Nigerian banks also expanded their balance sheets significantly during the year. Access Holdings increased its total assets from N41.4tn to N51.5tn, reflecting aggressive expansion and stronger asset accumulation. Zenith Bank and UBA also crossed the N30tn mark in total assets, further underlining the rapid growth within the industry.
Shareholders’ funds across several banks improved considerably following the recapitalisation exercise initiated by the Central Bank of Nigeria. The recapitalisation policy was designed to strengthen the financial system and position banks to support long-term economic growth and withstand future financial shocks.
Available industry data showed that Nigerian banks collectively raised about N4.65tn in fresh capital within two years as financial institutions moved to comply with revised minimum capital requirements set by the apex bank.
The Central Bank Governor, Olayemi Cardoso, had earlier stated that the recapitalisation programme would improve the resilience of the financial system and enhance the capacity of banks to finance large-scale investments across critical sectors of the economy.
According to him, stronger capital buffers are necessary to protect the banking industry against both domestic and global economic uncertainties while supporting sustainable economic expansion.
Despite the impressive revenue growth, profitability declined across several major banks due to the impact of rising impairment charges and adjustments linked to the expiration of regulatory forbearance arrangements.
First HoldCo recorded one of the sharpest declines in profit after tax. The bank’s profit dropped dramatically from N663bn in 2024 to N52bn in 2025 as impairment provisions surged sharply during the year.
United Bank for Africa also experienced a decline in profitability, with profit after tax falling from N766bn to N404bn. GTCO’s profit decreased from N1.01tn to N865bn, although the bank still maintained one of the strongest profitability levels within the industry.
Zenith Bank recorded relatively stable earnings performance with profit after tax standing at N1.04tn, while Access Holdings posted profit growth to N743bn despite higher operating costs and increased provisioning requirements.
Analysts explained that the sharp rise in impairment charges reflected efforts by banks to strengthen their balance sheets and account for credit risks more conservatively following changes in regulatory policies.
UBA reportedly recorded loan loss provisions of N331bn during the financial year, while First HoldCo’s impairment charges rose significantly to N710bn compared to N371bn in the previous year.
Access Holdings also reported a substantial increase in impairment charges on loans and advances to customers, with provisions rising by more than 200 per cent to N287.3bn.
Financial experts believe the aggressive clean-up of loan books, although painful in the short term, could ultimately strengthen investor confidence and improve the long-term health of the banking sector.
According to analysts, the industry is currently transitioning into a more disciplined financial environment where banks are expected to maintain stronger capital positions and more transparent risk management frameworks.
Some market observers noted that the decline in profitability could temporarily affect dividend payouts as banks prioritise capital preservation and compliance with regulatory requirements.
Nevertheless, investor confidence in banking stocks remained relatively strong on the Nigerian Exchange. Banking equities continued to attract significant market attention due to the sector’s strong fundamentals and long-term growth potential.
Recent trading activities showed positive momentum for several banking stocks, with GTCO shares recording gains of about 3.7 per cent while Stanbic IBTC posted an increase of approximately 9.7 per cent in market value.
Economic experts stated that the next major test for Nigerian banks will be their ability to channel their enlarged capital base into productive sectors such as manufacturing, agriculture, infrastructure, energy, and small-scale enterprises.
They stressed that sustainable economic growth would depend heavily on how effectively banks support private sector development and expand credit access to businesses capable of driving employment and industrial growth.
Analysts also emphasised the importance of exchange-rate stability, improved macroeconomic management, and consistent regulatory oversight in maintaining confidence within the financial system.
Despite the decline in profitability recorded by several institutions, the overall performance of Nigeria’s banking industry in 2025 reinforced the sector’s position as one of the strongest pillars of the country’s economy.
With stronger capital structures, expanding digital operations, and continued investor interest, analysts believe Nigerian banks remain strategically positioned to navigate economic uncertainties while pursuing long-term growth opportunities in Africa’s largest economy.
