Nigeria’s Biggest Banks Post Rare Profit Decline as FX Gains Fade

• GTCO sees steepest earnings drop after London listing

Nigeria’s biggest banks posted a rare decline in profits in the first half of 2025 as the foreign exchange gains derived from naira devaluations petered out and rising interest expenses put pressure on earnings, according to a Markets Reporters’ analysis of their latest financial statements.

Data from the Nigerian Exchange Limited shows that the combined profit after tax of Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, First HoldCo Plc, and Access Holdings Plc fell to N1.47 trillion from N2.19 trillion in the same period of last year.

Although United Bank for Africa (UBA) Plc saw its net income rise 6.04 percent to N333.5 billion, its pre-tax profit slipped to N388.4 billion from N401.6 billion — its second consecutive half-year decline.

First HoldCo, the parent of the country’s oldest lender FirstBank, reported an after-tax profit of N289.8 billion, declining for the first time in seven years. Access Holdings’ profit fell to ₦215.9 billion — the first drop since 2020.

Zenith Bank saw its profit fall to N532.2 billion, marking its first decline since 2016. GTCO’s profit dropped for the first time since 2022 to N449.01 billion.

A Lagos-based banking analyst Femi, who asked not to be fully identified, said the results reflect a shift from windfall-driven performance to more organic profitability. “In the last two years, profits were inflated by external shocks,” he said. “This year, we’re seeing a return to more sustainable earnings patterns.”

FX gains dry up amid naira stability

The sharp decline in forex revaluation gains—one of the biggest earnings drivers in 2023 and 2024—was a major drag on profitability. The naira’s relative stability this year meant smaller forex gains compared to the previous two years, when the currency underwent two major devaluations.

Data from the Central Bank of Nigeria (CBN) show the average official exchange rate rose to N1,450/$ in 2024 from N645.10/$ in 2023. In the first eight months of 2025, the naira traded within the 1,500–1,600/$ range before strengthening to 1,480.3/$ as of 26 September. On 24 October, it closed at 1,458.4/$ on the official window.

UBA’s forex gain plunged to N40.9 billion in the first half from N326.1 billion a year earlier, while GTCO recorded a N2.57 billion forex loss compared to a N617.1 billion gain in 2024. Access Holdings posted a N66.4 billion loss as against an N80.8 billion gain, while Zenith Bank saw FX gains decline to N167 billion from N219.4 billion.

First HoldCo, however, swung from a N165 billion FX loss to a N73.5 billion gain, while its interest expenses doubled to N185.4 billion.

Impact of policy shifts

Much of the record profits in 2023 and 2024 were fuelled by reforms that triggered two rounds of naira devaluation —and by a sharp increase in interest income amid the CBN’s aggressive monetary tightening. The Monetary Policy Rate (MPR) climbed 875 basis points to 27.50 percent between July 2023 and November 2024.

However, in July 2025, the apex bank held the MPR at 27.50 percent for a third consecutive time before cutting it by 50 basis points to 27 percent in September—its first rate cut in five years.

That policy shift signalled a moderation in the high-yield environment that had supported bank margins.

Before the H1 profit slump, tier-one and mid-sized banks were already showing signs of slower earnings growth in the first quarter. The combined after-tax profit of nine listed lenders—including Fidelity Bank Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, and FCMB Group Plc—rose marginally by 0.74 percent to N1.35 trillion, compared with the 274.3 percent surge recorded in the first quarter of 2024.


GTCO suffers steepest fall after London listing

GTCO, Nigeria’s largest banking group by market capitalisation, reported the steepest decline among the top-tier lenders: its H1 2025 profit fell by 50 percent.

The results came just weeks after it became the first Nigerian financial institution to list on the London Stock Exchange, marking a key step in its international expansion strategy.

The 9 July listing boosted its market capitalisation beyond N3 trillion, making it the first Nigerian bank to cross that threshold.

“GTCO’s audited H1 2025 results showed a 31.5 percent year-on-year increase in interest income to N812.4 billion ($523.5 million), supported by a sustained high-yield environment and growth in earning assets,” said analysts at CSL Research.

However, funding costs rose sharply as interest expenses climbed 42.5 percent year-on-year, raising its cost of funds to 2.2 percent by June 2025. Net loans and advances to customers also grew by 20.5 percent compared to full-year 2024, further squeezing margins amid tighter liquidity conditions.