Nigerian Banking Sector Demonstrates Robust Growth with N502 Billion Profit in 2025
The Nigerian banking industry has kicked off its fourth-quarter earnings season with impressive results, as five major financial institutions have unveiled their full-year financial performance for 2025. These banks collectively reported a substantial profit after tax of N502 billion, accompanied by notable increases in customer deposits, reflecting growing public confidence in the nation's banking system.
FCMB Group Plc Leads with Exceptional Performance
FCMB Group Plc emerged as a standout performer, announcing a remarkable pre-tax profit of N200.91 billion for 2025, representing an 80% increase from the previous year's N111.9 billion. The bank's profit after tax surged by an impressive 141.7% to reach N176.91 billion, while gross earnings grew 41.8% to N1.13 trillion. This growth was primarily driven by a 61.2% rise in interest income, which totaled N1.00 trillion and accounted for nearly 89% of total revenue.
Net interest income experienced a dramatic 122% increase to N502.89 billion, showcasing the bank's effective cost management strategies despite a 26% rise in interest expenses to N499.23 billion. Customer deposits increased by 2.5% to N4.40 trillion, reinforcing public trust in the institution. Additionally, FCMB's equity grew by 19.5% to N823.42 billion, further strengthening its capital foundation for future operations.
Sterling Financial Holdings Shows Strong Operational Efficiency
Sterling Financial Holdings, the parent company of Sterling Bank and The Alternative Bank, reported a 99% year-on-year increase in pre-tax profit, reaching N90.7 billion. This performance was supported by enhanced operational efficiency and a reduced cost-to-income ratio of 63%, down from 72% in 2024. Gross earnings surged 46% to N476.5 billion, driven by strong growth in both interest income (up 43% to N369.6 billion) and non-interest income from fees and trading revenue.
Total assets expanded by 11% to nearly N4 trillion, while customer deposits rose 18% to N2.98 trillion, indicating improved customer engagement and successful product adoption across the bank's various platforms. Shareholders' funds increased by 39% to N424 billion, positioning the institution well for continued growth and market expansion.
Jaiz Bank Plc Records Steady Growth
Jaiz Bank Plc demonstrated consistent performance with pre-tax profit rising 28.4% to N31.3 billion. This growth was supported by increased income from financing and investing activities. Income from financing contracts grew 43.3% to N45.9 billion, dominated by murabaha and ijara transactions, while income from investing activities increased 17.2% to N52 billion. The bank's total assets expanded to N1.2 trillion, with customer deposits standing at N724 billion.
Wema Bank Plc Achieves Impressive Profit Surge
Wema Bank Plc recorded exceptional performance with pre-tax profit reaching N222.07 billion, representing a 116.3% increase, while profit after tax surged 123.5% to N193.19 billion. Gross earnings grew 51% to N653.28 billion, primarily driven by interest income of N577.10 billion. The bank's loans and advances portfolio expanded by 45% to N1.75 trillion, and customer deposits increased 30% to N3.28 trillion, highlighting strong customer confidence in the institution.
Net interest income more than doubled to N360.10 billion, reflecting the bank's successful lending strategy and effective management of funding costs. Wema Bank has recently joined Nigeria's exclusive N1 trillion market capitalisation club, marking a significant milestone for one of the country's oldest tier-2 lenders and signaling growing investor interest in mid-tier banking stocks on the Nigerian Exchange.
First HoldCo Plc Focuses on Strategic Strengthening
First HoldCo Plc concentrated on balance sheet strength and strategic capital management during the reporting period. The bank reported total assets of N27.1 trillion, up from N26.5 trillion in 2024, with gross earnings rising 4.8% to N3.4 trillion. This performance was supported by a 36.3% increase in net interest income.
While pre-tax profit declined to N229.1 billion and profit after tax fell to N45.0 billion, largely due to higher impairment charges and regulatory costs, customer deposits increased by 10%, demonstrating ongoing confidence in the bank's operations and strategic direction.
Sector-Wide Implications and Market Confidence
The collective performance of these five banks signals several important trends in Nigeria's banking sector:
- Public Trust Reinforcement: The consistent growth in customer deposits across all institutions indicates renewed public confidence in the banking system.
- Operational Efficiency: Several banks demonstrated improved cost management and operational effectiveness.
- Strategic Diversification: While interest income remains dominant, some institutions showed growth in non-interest income streams.
- Capital Strengthening: Multiple banks reported increased equity and shareholders' funds, positioning the sector for sustainable growth.
These financial results come at a time when the Nigerian economy continues to navigate various challenges, making the banking sector's performance particularly noteworthy. The data suggests that despite economic headwinds, Nigerian banks have maintained resilience and continue to play a crucial role in supporting economic activities through lending and financial services.
The release of these fourth-quarter earnings sets a positive tone for the broader banking sector's performance in 2025, with expectations that other financial institutions will follow with similarly strong results in the coming weeks.
