H1: 10 Banks Generate N10.77trn Gross Earnings Despite Economic Challenges

Kayode Tokede

Despite prevailing macro-economic challenges, 10 Nigerian banks posted of N10.77 trillion gross earnings in half year (H1) ended June 30, 2025, a 16.4 per cent increase over N9.3 trillion recorded in the corresponding period of 2024. 

The banks are: Zenith Bank Plc, Ecobank Transnational Incorporated (ETI), First HoldCo Plc, United Bank for Africa (UBA) Plc, Guaranty Trust Holding Company Plc (GTCO), FCMB Group Plc, Wema Bank Plc, Sterling Financial Holdings Company, Jaiz Bank Plc and Stanbic IBTC Holdings Plc.

Thus, they achieved profit before tax of N3.08 trillion in H1 2025 from N3.26 trillion in H1 2024, largely driven by high interest expenses, operating expenses and impairment on loan losses.

THISDAY analysis of the banks financial results showed that Zenith Bank emerged top with gross earnings of N2.52 trillion, reflecting a solid 20 per cent increase from N2.1 trillion recorded in H1 2024.

Zenith Bank said the growth in gross earnings was driven by a strong YoY growth of 60 per cent in interest income from N1.1 trillion in H1 2024 to N1.8 trillion in H1 2025. The growth in interest income, it said, was propelled by a high yield environment and an increase in it’s risk asset portfolio.

 The Group Managing Director/CEO, Zenith Bank, Dr. Adaora Umeoji, added that the financial institution’s H1 2025 performance reaffirms the strength and resilience of the Zenith brand.

“In the face of elevated provisioning due to the industry‑wide wind‑down of the CBN forbearance regime, our total asset quality has recorded a marked improvement while our balance sheet remains strong, liquid and well positioned to capture emerging opportunities across our core markets,” the statement by Umeoji added. 

ETI followed closely, posting a N2.31 trillion gross earnings in H1 2025, representing an increase of 23.7 per cent from N1.86trillion reported in H1 2024.  

While First Holdco posted N1.66 trillion gross earnings in H1 2025, up by 18 per cent from N1.4 trillion declared in H1 2024, UBA closed H1 2025 at N1.16 trillion earnings, an increase of 17.3 per cent from N1.37 trillion declared in H1 2024.            

UBA in a presentation to investors & analysts said, “The upward trend in gross earnings underscores a robust revenue base, largely buoyed by a N330 Billion increase year-on-year in interest income, and growth in fee and commission, as the bank continues to expand market share across geographies.”

GTCO posted N1.07 trillion gross earnings in H1 2025, about 23 per cent decline over N1.39 trillion declared in H1 2024. Its profit before tax stood at N600.9 billion in H1 2025, about  40 per cent drop from N1 trillion declared in H1 2024.

Analysts believed that the resilience demonstrated by the banking sector is not only a testament to the adaptability of financial institutions but also an indication of future opportunities, especially for investors eyeing stable returns.

Although they argued that with interest rates expected to moderate and the naira projected to strengthen with reduced volatility, the banks’ profit margins could come under pressure this year.

However, experts remained bullish on the banking sector topline performance noting that banks with robust loan book growth and strong non-interest income strategies, especially those capitalising on trading activities, will likely remain attractive to investors.

Speaking, Vice President, Highcap Securities Limited, Mr David Adnori stated that Nigerian banks’ performance in the H1 2025 offers a positive signal for what lies ahead in 2025.

According to him, the strong topline and bottom-line growth recorded by most banks came despite prevailing regulatory and economic challenges, reflecting the sector’s strategic resilience. He attributed the surge in bank earnings primarily to expanded topline revenues and efficient treasury portfolio management, especially trading gains amid market volatility.

“The banks have consistently delivered stellar performances year after year, and 2024 was no exception. This time, high interest rates and currency fluctuations worked to their advantage. Also, the Central Bank of Nigeria’s decision to raise the Cash Reserve Ratio (CRR) to 50% forced banks to think creatively about liquidity management, leading many to issue short-term commercial papers as alternative funding sources,” he said.

He explained, led to significant growth in customer deposits, loan portfolios and non-interest income streams, bolstered by elevated interest rates and windfall profits.

Adnori added that if the CBN pivots toward monetary easing in 2025 to support economic growth, as many analysts expect, the sector could experience slight margin compression.

“But even with tighter margins, we anticipate that the banks will still deliver respectable topline growth and profits,” he said.

An investment banker and stockbroker, Tajudeen Olayinka, said the H1 2025 results confirm the banking sector’s inherent strength and its ability to thrive even in challenging economic times.

“Banks have shown they can perform under any condition, whether it is high inflation or high interest rate. This is because banking fundamentally revolves around liability generation and asset creation, making it a portfolio of opportunities in any economy,” he said. Olayinka believed the sustainability of the strong performance hinged on the continuity or expansion of economic opportunities.