Four tier-one banks’ profit rises 12.9% to N3.39tr in nine months

Four tier-one banks delivered combined profit before tax (PBT) of N3.39 trillion in the nine months’ operations, about 13 per cent higher than N3 trillion achieved in the corresponding period in 2025.

The four lenders, comprising First HoldCo Plc, Guaranty Trust Holding Company (GTCO) Plc, Access Holdings Plc and Zenith Bank Plc, posted a combined N386.31 billion increase in pre-tax profit, reflecting improved earnings performance by three of the groups despite growing pressure on interest income and operating costs.

A breakdown of their unaudited nine-month performance showed that First HoldCo, the parent company of FirstBank, recorded the strongest growth, with its PBT rising by 60.84 per cent to N911.24 billion from N566.54 billion in the corresponding period of 2025.

Zenith Bank followed with a 1.24 per cent increase in pre-tax profit to N928.80 billion from N917.41 billion, while Access Holdings grew its PBT by 8.3 per cent to N667.36 billion from N616.25 billion.

Access Holdings recorded an 8.3 per cent increase in profit before tax to N667.36 billion from N616.25 billion in the corresponding period of 2025, supported by improved core income and a significant reduction in impairment charges.

GTCO, however, posted a pre-tax profit of N879.90 billion, down from N900.80 billion in the corresponding period of 2025.

First HoldCo’s performance was supported by higher non-interest income, lower impairment charges and gains from financial instruments, which helped offset pressure on its core interest earnings.

Its nine-month net fee and commission income increased by 48.1 per cent to N316.4 billion from N213.7 billion, while impairment charges declined by 28.3 per cent to N207.10 billion from N288.92 billion.

For Access Holdings, the 8.3 per cent increase in pre-tax profit was supported by a 73.5 per cent reduction in impairment charges to N92.91 billion, while net fee and commission income rose by 12.4 per cent to N534.94 billion. The group also recorded a 32.1 per cent increase in net interest income after impairment to N1.20 trillion.

GTCO’s performance was impacted by pressure from higher funding costs and fair-value losses, despite improvements in its asset quality and growth in some of its core income lines.

The group’s interest income increased by five per cent to N1.29 trillion, but interest expenses rose by 27.7 per cent to N356 billion, resulting in a 1.7 per cent decline in net interest income to N935.88 billion. It also recorded a N87.9 billion fair-value loss during the period, which moderated its profitability.

The combined performance suggests that while the four banking groups remain profitable, the sources and quality of their earnings differ, with some relying more heavily on fee income and lower credit costs while others face pressure from funding expenses and trading losses.

Analysts said the nine-month results showed that tier-one banks remained profitable but noted differences in the quality and sources of their earnings. They urged investors to look beyond headline profit figures and pay closer attention to core income, funding costs, loan growth, impairment charges and asset quality.

They noted that while some lenders benefited from lower impairment charges and improved funding costs, others faced pressure from rising deposit expenses, weaker interest income and increased credit risks.

According to them, the ability of the banks to sustain profit growth would depend on stronger core banking operations, effective cost management and prudent lending.

CardinalStone Research, in its 2026 Mid-Year Asset Allocation Guide, identified Zenith Bank, GTCO, UBA and Access Holdings among its preferred banking stocks, citing the benefits of recapitalisation, stronger balance sheets, resilient earnings and improving macroeconomic conditions.

The firm also noted that elevated yields on government securities could continue to support banks’ interest income and profitability.

President of NewDimension Shareholders Association of Nigeria, Patrick Ajudua, described the banks’ performance as commendable, saying it reflected the effective use of funds raised through the recapitalisation exercise.