Four tier-one banks delivered combined gross earnings of N14.93 trillion in their last year’s full-year operations, about 5.4 per cent higher than N14.174 trillion achieved in 2024.

The four lenders – United Bank for Africa (UBA), GTCO, Access Holdings and Zenith Bank – remain upbeat in their performances.

Notwithstanding the performance, experts have warned that sustaining the momentum this year would depend on several factors, including the direction of interest rates, which have so far supported earnings through stronger margins. Easing interest rates, they said, could put pressure on profitability.

Team Lead, Finance Research Department at InvestingPort, Uwem Olubummo, said the performance of tier-one banks underscored the resilience of Nigeria’s banking sector, driven largely by an elevated interest rate environment, FX-related gains and robust non-interest income streams.

However, she argued that asset quality is also a key variable to monitor as prevailing macroeconomic conditions may heighten the risk of loan defaults and lead to increased impairment charges.

According to her, foreign exchange (FX) stability remains another major variable, as a more stable FX environment could reduce the windfall gains recorded in previous periods and ultimately normalise earnings growth.

She said attention should be centred on the sustainability of net interest margins, the pace of growth in non-interest income, cost efficiency and operating expenses, as well as loan book quality, non-performing loan (NPL) and capital adequacy, especially against the backdrop of ongoing recapitalisation plans.

Olubummo expressed optimism that, as these factors are put into consideration, banks would remain fundamentally strong while earnings growth moderates, with performance increasingly driven by core banking operations.

Cowry Asset Management said that Nigerian banks delivered a strong 2025 full-year performance, driven largely by elevated interest rates, FX-related revaluation gains and improved non-interest income streams.

The firm noted that while earnings growth was robust across tier-one lenders, a significant portion of the expansion was supported by macroeconomic conditions rather than operations.

Cowry also emphasised emerging pressures on asset quality, noting that rising impairment charges and macroeconomic headwinds could weigh on future profitability.

It added that as the operating environment normalises, banks’ performance would increasingly depend on core fundamentals.

A breakdown of their full-year performance showed that Access Holdings topped the list with gross earnings of N5.529 trillion in 2025, up from N4.87 trillion in 2024, representing a 13.53 per cent increase. The performance reinforced its position as the largest lender by earnings.

Zenith Bank followed with N4.19 trillion in gross earnings, compared to N3.97 trillion in the previous year, translating to a 5.54 per cent growth.

United Bank for Africa reported gross earnings of N3 trillion for 2025, down from N3.186 trillion recorded in 2024, indicating a decline of about 5.84 per cent.

Guaranty Trust Holding Company posted N2.215 trillion in gross earnings, slightly higher than N2.148 trillion recorded in 2024, a modest growth of 3.12 per cent.

The performance highlights a divergence among the tier-one banks, with strong expansion from Access Holdings and steady growth from Zenith Bank and GTCO offsetting the contraction recorded by UBA during the period.

Early 2026 results, as shown in the first quarter (Q1) results, point to sustained earnings momentum across most of the lenders, with Access Holdings Plc maintaining its lead after posting gross earnings of N1.4 trillion in the first quarter of 2026, up sharply from N984 billion recorded in the corresponding period of last year.

Zenith Bank Plc also opened the year on a strong note, reporting N1.01 trillion in gross earnings for the first quarter, representing a 6.14 per cent increase from approximately N952 billion recorded in the same period of 2025.

UBA recorded gross earnings of N801.42 billion in the first quarter, up by 4.86 per cent from N764 billion posted in the corresponding quarter of 2025.