NIGERIA'S FIVE BIGGEST BANKS EARNED ₦18.2 TRILLION IN 2025, BUT PROFITS COLLAPSED ON LOAN PROVISIONS

Philip
19 hours ago
2 min read

*FUGAZ assets hit ₦161.4 trillion; First HoldCo PAT fell 92%; Fitch projects 20%+ loan growth in 2026*

Nigeria's five largest banks collectively earned ₦18.2 trillion in gross income in 2025 and expanded their combined assets to ₦161.4 trillion, but a wave of elevated loan loss provisions triggered by the unwinding of regulatory forbearance sent profits sharply lower at three of the five institutions.

Audited results for First HoldCo, United Bank for Africa, Guaranty Trust Holding Company, Access Holdings, and Zenith Bank, collectively known as FUGAZ, showed gross earnings rising 7.69 per cent from ₦16.9 trillion in 2024. Total assets reached ₦161.4 trillion, a 12.9 per cent increase from ₦143 trillion the previous year, driven by balance sheet expansion following the CBN's recapitalisation programme.

Access Holdings led gross earnings at ₦5.52 trillion, with Zenith Bank at ₦4.07 trillion, First HoldCo at ₦3.21 trillion, UBA at ₦2.97 trillion, and GTCO at ₦2.11 trillion. However, profitability diverged sharply. First HoldCo's profit after tax fell from ₦663 billion in 2024 to ₦52 billion in 2025. UBA's declined from ₦766 billion to ₦404 billion, while GTCO fell from ₦1.01 trillion to ₦865 billion. Zenith Bank held steady at ₦1.04 trillion and Access Holdings grew to ₦743 billion.

Analysts said the profit declines reflect a deliberate clean-up of balance sheets rather than fresh deterioration. Banks are reclassifying loans previously shielded by regulatory forbearance, requiring large provisions: First HoldCo's impairments rose to ₦710 billion from ₦371 billion, while UBA booked ₦331 billion in loan loss provisions. Combined customer deposits grew 23 per cent to ₦114 trillion from ₦93 trillion in 2024, signalling sustained depositor confidence.

Fitch Ratings projects bank loan growth will accelerate to above 20 per cent in 2026 as stronger capital positions following the recapitalisation exercise create headroom for fresh credit expansion.