Nine Nigerian banks earned a combined N14.72 trillion in the first three quarters of 2025
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Nine Nigerian banks earned a combined N14.72 trillion in the first three quarters of 2025, driven by a high-interest-rate environment. An analysis of their interim financial statements for the period ended September 30, 2025, filed with the Nigerian Exchange Limited, showed that their total interest income grew by 27.68 per cent from N11.53 trillion in the same period of 2024.
The reviewed banks include Access Holdings Plc, First HoldCo, Zenith Bank Plc, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Stanbic IBTC Holdings, Sterling Financial Holding Company, Wema Bank, and Ecobank Transnational Incorporated.
Interest income refers to the money earned by a company from lending funds, keeping deposits, or investing in certificates of deposit.
Access Holdings led in absolute figures, as its interest income rose by 21.11 per cent to N2.90 trillion from N2.39 trillion in Q3 2024. Zenith Bank followed with N2.74 trillion, representing a 40.77 per cent increase from N1.95 trillion in the same period last year.
Ecobank Transnational Incorporated reported a 20 per cent rise in interest income to N2.33 trillion from N1.93 trillion, while First HoldCo, the parent company of FirstBank, earned N2.29 trillion, up from N1.63 trillion. These four institutions accounted for most of the total interest income recorded by the sector.
Zenith Bank and First HoldCo showed the strongest growth among the top banks, with increases of 40.77 per cent and 40.38 per cent, respectively. Zenith Bank recorded the largest absolute increase of N793.84 billion, while First HoldCo added about N659.37 billion.
GTCO’s interest income rose by 25.56 per cent to N1.23 trillion, while UBA recorded the lowest growth at 10.08 per cent, reaching N1.98 trillion from N1.79 trillion. Wema Bank had the highest growth rate, increasing by 72.65 per cent to N396.95 billion from N229.91 billion.
Stanbic IBTC Holdings reported a 37.24 per cent increase, adding about N158.53 billion year-on-year, while Sterling Financial Holding Company recorded a 38.73 per cent growth to N262.42 billion from N189.16 billion. Sterling said loans and advances to customers contributed the most to its income, followed by debt instruments measured at fair value through other comprehensive income (FVOCI).
The rise in interest income across the sector was largely driven by the high benchmark interest rate, which boosted returns on loans, investment securities, and other interest-bearing assets.
The Central Bank of Nigeria (CBN) maintained a tight monetary policy until September 2025, when it reduced the Monetary Policy Rate (MPR) by 50 basis points to 27.00 per cent the first rate cut in several years. The CBN also adjusted the Standing Facilities corridor to +250/-250 basis points, set the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, and maintained the liquidity ratio at 30 per cent.
According to CBN Governor Olayemi Cardoso, the rate cut was based on signs of disinflation in August 2025, the strongest decline in inflation in five months.
Data from the CBN’s Money Market Indicators showed that as of September, the maximum lending rate was 29.84 per cent, up from 29.13 per cent in August and 29.31 per cent in July. Meanwhile, credit to the private sector declined to N72.53 trillion in September from N75.88 trillion in August and N76.13 trillion in July, reflecting reduced lending activity following the rate cut.
Global ratings agency Moody’s Investors Service warned that Nigeria’s banking sector could face new profitability risks following the CBN’s rate reduction. The agency cautioned that the move might narrow banks’ net interest margins unless higher loan volumes compensate for lower yields.
Moody’s stated that lower policy rates would likely reduce yields on loans and government securities faster than deposit costs, as deposit rates tend to adjust more slowly. In 2024, net interest income made up 62 per cent of Nigerian banks’ operating income, according to Moody’s, which added that the reduction in the CRR would provide only limited relief.
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