As the April 2026 banking recapitalisation deadline draws near, no fewer than 10 listed banks have declared an impressive total of N1.83 trillion in pre-tax profits for the first quarter (Q1) of 2025. Despite the challenges posed by foreign exchange volatility, persistent inflation, and rising operational costs, the banks have maintained strong performance, aided by their strategic positioning to benefit from forex adjustments and high-yield assets.
The banks in question include Zenith Bank, Guaranty Trust Holding Company (GTCO), Wema Bank, Ecobank Transnational Incorporated (ETI), First HoldCo, United Bank for Africa (UBA), Access Holdings, FCMB Group, Fidelity Bank, and Stanbic IBTC Holdings. These banks had previously raised funds in the capital markets as part of the ongoing recapitalisation efforts but still managed to generate substantial profits in Q1 2025.
Zenith Bank emerged as the leader, with a 10 per cent increase in its pre-tax profit, reaching N350.815 billion, up from N320.194 billion in Q1 2024. Fidelity Bank saw the most significant improvement, posting a remarkable 168 per cent rise in pre-tax profit to N105.77 billion, up from N39.498 billion in the same period last year. Other banks such as ETI, Access Holdings, UBA, Stanbic IBTC, Wema Bank, and FCMB Group also reported solid profits, totaling N267.305 billion, N222.782 billion, N204.266 billion, N116.415 billion, N41.158 billion, and N35.02 billion, respectively.
However, not all banks saw an uptick in their profitability. GTCO reported a significant decline of 41 per cent, with pre-tax profits falling to N300.377 billion from N509.349 billion in Q1 2024. First HoldCo also experienced a 20.4 per cent drop in its pre-tax profit, which decreased to N186.479 billion from N234.168 billion last year.
Segun Agbaje, Group CEO of GTCO, expressed optimism about the group’s future performance. “Our Q1 2025 performance reflects the strength of all our business verticals and our capacity to generate strong and sustainable earnings,” Agbaje said. He added that GTCO was well-positioned to meet its projected profit targets for 2024 by the end of 2025.
Oliver Alawuba, Group Managing Director of UBA, attributed the bank’s performance to prudent risk management and customer-centric innovation. “Our results underscore the effectiveness of our core banking focus,” Alawuba said.
Financial analyst Tajudeen Olayinka attributed the strong profits to the banks’ ability to leverage currency revaluation and structured US dollar positions. “Most DMBs positioned their balance sheets to benefit from forex adjustments and high-yield assets,” Olayinka noted.
Ambrose Omordion, COO of InvestData Consulting, emphasized that the sustainability of future profits would depend on how well the banks manage their costs and handle the volatility of the naira. He cautioned that banks must also maintain asset quality in an increasingly demanding operating environment.
Looking ahead, analysts at CardinalStone Research believe the ongoing banking recapitalisation will yield positive long-term benefits, allowing banks to expand their interest-earning assets and enhance their digital platforms. They noted, however, that the relative stability of the exchange rate may limit the banks’ non-interest earnings growth, as lower fair value gains on derivatives could reduce their profitability in that area.
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