Onome Amuge

Nigeria’s Tier-1 lenders are holding firm amid a turbulent economic landscape. Third-quarter 2025 reports from GTCO, UBA, Access Holdings, Zenith Bank, and FBN Holdings show sustained profit growth, reinforced capital positions, and steady balance sheet expansion, even as policy shifts, cost pressures, and exchange-rate instability weigh on the sector.

While gross earnings across the big five lenders expanded on the back of higher interest income and loan book growth, profit margins moderated due to higher funding costs, asset repricing, and inflation-driven operating expenses. Nevertheless, the banks’ capital buffers and shareholders’ funds have strengthened significantly, highlighting sustained investor confidence and prudent capital management in a challenging economic landscape.

Business a.m.’s  analysis of the banks’ Q3 results shows that combined shareholders’ funds across the Tier-1 group rose beyond N16 trillion, up from N13 trillion a year ago, reflecting a 23 per cent capital accretion rate driven by retained earnings, recapitalisation efforts, and strong internal capital generation.

The Q3 2025 profitability results across the industry highlighted varying outcomes, with GTCO and UBA sustaining moderate post-tax profit growth, Access Holdings delivering strong quarter-on-quarter gains, and Zenith Bank and FBN Holdings experiencing slight declines resulting from trading losses and increased impairments.

GTCO led the industry in efficiency and return metrics, recording a profit before tax (PBT) of N900.8 billion, upholding a strong Return on Average Equity (ROAE) of 39.5 percent, the highest among Tier-1 peers. Its profit after tax stood at approximately N740 billion, representing one of the sector’s best bottom-line showings despite a high base effect from 2024’s one-off fair value gains.

According to Segun Agbaje, the group chief executive officer, the performance reflects the consistency of GTCO’s model and strategic diversification.

“Our third-quarter performance underscores the resilience of our business model and the strength of our diversified financial services ecosystem. We are seeing sustainable growth across banking and non-banking businesses, supported by disciplined execution and a strong focus on operational efficiency,” Agbaje said. 

UBA maintained its growth trajectory, reporting a Profit After Tax (PAT) of N537.5 billion, a 2.3 percent rise from N525.3 billion in Q3 2024, despite a 4.1 per cent dip in PBT. The profit increase came on the back of a 3.0 per cent climb in gross earnings to N2.47 trillion, supported by solid interest income and a 6.2 per cent lift in net interest margins.

Oliver Alawuba, UBA’s group managing director/CEO, attributed the steady performance to prudent balance sheet management and diversification.

“We delivered solid performance supported by a well-diversified earnings base across all our markets. Our profit growth demonstrates resilience across geographies, underlining the success of our pan-African strategy and the benefits of diversification,” Alawuba said. 

Access Holdings also recorded notable progress in its Q3 2025 results, with gross earnings rising by 14.1 percent year-on-year to N3.9 trillion, while PBT climbed to N616 billion from N558 billion in Q3 2024. Although PAT moderated slightly to N447 billion from N458 billion, the group achieved a 91.9 per cent quarter-on-quarter growth in PBT, reflecting recovery momentum after a cautious first half.

The group’s strong performance was driven largely by its foreign subsidiaries, which now contribute over 50 per cent of total earnings, an outcome that reaffirms Access’ success in scaling its pan-African footprint.
 

Company secretary Sunday Ekwochi noted that diversification remains a core strength.

“The robust contribution from our international subsidiaries reflects the benefits of diversification and deepening franchise strength across Africa. We will continue to strengthen our franchise across all markets, deepen resilience, and deliver sustainable value for stakeholders,” he said. 

Zenith Bank, on its part, sustained its position as one of the most profitable banks, with a PBT of N917 billion, slightly below N1.00 trillion a year ago. PAT stood at N764 billion, down by 8 percent, largely due to weaker trading gains. Despite the dip, Zenith grew gross earnings by 16 percent to N3.4 trillion, supported by a 41 per cent jump in interest income to N2.7 trillion.
Its GMD/CEO, Adaora Umeoji, described the results as a reflection of the bank’s resilient strategy and adaptability.

“Our strong capital base, improved asset quality, and disciplined execution position us for sustainable and profitable growth. We remain focused on innovation, digital transformation, and long-term value creation for our stakeholders,” Umeoji said. 

FBN Holdings, the oldest among the pack, recorded a PBT of N566.5 billion, representing a 7.3 per cent decline from N610.9 billion last year. However, the group’s net interest income rose 71.7 per cent to N1.5 trillion, underscoring a solid core banking performance despite increased impairment charges. PAT closed at N450.9 billion, down 15.6 percent year-on-year, reflecting cautious provisioning and higher credit costs.

The group’s total assets climbed to N26.4 trillion, while shareholders’ funds expanded by 16.6 percent to N3.26 trillion, signalling stronger capital buffers and improved risk management.

Comparative Financial Snapshot – Q3 2025 (NTrillion/Billion)

Balance sheet expansion: Access, UBA lead asset growth

Balance sheets across the Tier-1 spectrum continued to expand in 2025, supported by strong deposit mobilisation and increased investment in earning assets. Access Holdings retained its crown as Nigeria’s largest financial institution by assets, with its balance sheet rising 25.8 percent year-to-date to N52.0 trillion, driven by customer deposits that grew 47 per cent to N33.1 trillion.

UBA followed closely with N32.5 trillion in total assets, up 7.2 per cent from N30.3 trillion as at December 2024, while Zenith Bank maintained a healthy N31 trillion balance sheet, supported by N23.7 trillion in customer deposits.
FBN Holdings’ assets rose 7.8 per cent to N26.4 trillion, while GTCO’s total assets stood at N16.7 trillion, reflecting its more streamlined holding structure and asset-light diversification into pensions, payments, and asset management.

Among the five, UBA and Access Holdings recorded the largest increases in shareholders’ funds, rising 25.8 per cent and 21 per cent, respectively, a reflection of strong retained earnings and progress in recapitalisation initiatives. GTCO’s shareholders’ funds stood at N3.3 trillion, Zenith’s at an estimated N2.7 trillion, and FBN Holdings’ at N3.26 trillion.

Capital strength and shareholders’ value climb

Capital buffers remain a defining feature of the Tier-1 cohort, especially as the Central Bank of Nigeria (CBN) intensifies the ongoing industry-wide recapitalisation exercise.

UBA’s shareholders’ funds climbed to N4.3 trillion, the highest among its peers, underscoring strong internal capital generation and proceeds from its recently concluded Rights Issue.

“We have made significant progress on our capital raising as part of the industry-wide recapitalisation. This strengthens our capital base and supports prudent expansion across markets,” Alawuba noted. 

GTCO reported a robust Capital Adequacy Ratio (CAR) of 36.5 per cent, one of the strongest in the industry, and a cost-to-income ratio of 28.8 per cent, reflecting superior operational efficiency.

“Our focus remains on innovation and customer experience. With a clear growth trajectory and organisational alignment, we are well-positioned to sustain momentum and deliver industry-leading results,” said CEO Agbaje. 

Zenith Bank, despite a challenging trading environment, reported liquidity and coverage ratios well above regulatory thresholds, with liquidity at 53 per cent and coverage at 211 perc cent, highlighting a solid capital base capable of absorbing market shocks.

FBN Holdings also strengthened its equity position, reporting N3.26 trillion in shareholders’ funds, boosted by retained earnings and a N146.7 billion capital injection during the year.

While aggregate Tier-1 PBT topped N3.6 trillion, the growth momentum was uneven.
Zenith led the group in absolute pre-tax profit (N917 billion), followed closely by GTCO (N900.8 billion), Access Holdings (N616 billion), UBA (N578.6 billion), and FBN Holdings (N566.5 billion).

In terms of PAT, Zenith again led with N764 billion, followed by GTCO (N740 billion est.), UBA (N538 billion), FBN Holdings (N451 billion), and Access Holdings (N447 billion). The profit compression at FBN and Access underscores tighter margins and higher impairment costs across credit portfolios, while GTCO’s efficiency-led model delivered superior returns despite a smaller asset base.

GTCO maintained the highest ROE (≈39.5 percent) and lowest cost-to-income ratio (28.8 per cent), while Zenith and UBA followed with ROEs of roughly 23 per cent and 21 per cent, respectively. Access Holdings, with its continental expansion strategy, recorded a lower ROE of 15.4 percent but compensated with strong revenue diversification and asset growth.

Analysts expect Q4 2025 to mark a decisive phase for the sector as banks accelerate capital raising to meet the CBN’s new capital thresholds ahead of the 2026 deadline.
UBA, Access, and Zenith are already executing multi-tranche rights issues and public offers, while GTCO and FBN Holdings are expected to follow suit with capital market programmes before year-end.

Despite macroeconomic headwinds,  including inflationary pressure, volatile FX markets, and high interest rates, Nigeria’s top-tier lenders remain well-positioned to maintain profitability and capital adequacy through operational efficiency, technological investments, and regional diversification.

As GTCO’s Agbaje stated,“Innovation, discipline, and customer focus will continue to define competitive advantage in Nigerian banking.”

For investors, the Q3 2025 scorecard reaffirms the resilience of Nigeria’s Tier-1 banks, a sector operating amid global uncertainty yet sustaining growth, profitability, and shareholder value in one of Africa’s largest financial markets.