Nigeria’s biggest banks have continued to enjoy massive earnings in 2025 as nine major financial institutions raked in a total of N14.72 trillion in interest income during the first nine months of the year. The increase was largely driven by the high-interest-rate environment that has defined the country’s monetary policy in recent years.
An analysis of the unaudited third-quarter results of the banks filed with the Nigerian Exchange Limited (NGX) showed a combined 27.68 per cent rise in interest income from N11.53 trillion in the same period of 2024. The nine institutions reviewed include Access Holdings Plc (Access Bank), Zenith Bank Plc, First HoldCo (First Bank), Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Stanbic IBTC Holdings, Sterling Financial Holding Company, Wema Bank Plc, and Ecobank Transnational Incorporated.
According to the Corporate Finance Institute, interest income represents the money a company earns from lending funds or investing in deposit accounts and other financial instruments. The sharp growth in these figures reflects both rising interest rates and banks’ ability to generate more revenue from loans, advances, and investment securities.
Access Holdings maintained the lead in absolute figures, with its interest income increasing by 21.11 per cent to N2.90 trillion from N2.39 trillion in the same period last year. Zenith Bank followed closely, earning N2.74 trillion, representing a 40.77 per cent increase from N1.95 trillion recorded in 2024.
Ecobank Transnational Incorporated, which reports its results in both naira and US dollars, saw a 20 per cent rise in its interest income to N2.33 trillion, up from N1.93 trillion. First HoldCo, the parent company of First Bank, earned N2.29 trillion, marking a strong 40.38 per cent growth from N1.63 trillion in the same period of 2024. Together, these four major banks accounted for most of the total interest income recorded across the industry.
Among the top performers, Zenith Bank and First HoldCo showed the strongest year-on-year growth momentum. Zenith Bank recorded the largest absolute increase of about N793.84 billion, while First HoldCo followed with an addition of N659.37 billion.
Guaranty Trust Holding Company (GTCO) reported a 25.56 per cent increase to N1.23 trillion, while UBA saw the lowest growth among the large-cap banks, recording 10.08 per cent to reach N1.98 trillion.
Wema Bank posted the most significant growth rate overall, with its interest income surging 72.65 per cent to N396.95 billion from N229.91 billion in 2024. The strong performance underlines Wema’s aggressive expansion and growth in customer loans.
Stanbic IBTC Holdings also recorded strong figures with a 37.24 per cent increase in interest income, adding around N158.53 billion over the previous year. Sterling HoldCo reported a growth of 38.73 per cent to N262.42 billion from N189.16 billion, driven largely by higher earnings from loans and advances, as well as debt instruments under its Fair Value Through Other Comprehensive Income (FVOCI) portfolio.
Analysts attribute the rise in banks’ interest income to the sustained tight monetary policy stance of the Central Bank of Nigeria (CBN), which pushed lending and deposit rates upward. The Monetary Policy Rate (MPR) was reduced slightly in September 2025 by 50 basis points to 27.00 per cent, marking the first cut in several years.
The MPC also adjusted the Cash Reserve Ratio (CRR) for commercial banks to 45 per cent, maintained the ratio for merchant banks at 16 per cent, and introduced a 75 per cent CRR on non-TSA public sector deposits. The liquidity ratio remained unchanged at 30 per cent.
The CBN Governor, Olayemi Cardoso, explained that the rate cut was driven by a steady decline in inflation pressures, which had slowed for five consecutive months by August 2025. Despite the adjustment, average lending rates in the banking system remained high at 29.84 per cent in September, compared to 29.13 per cent and 29.31 per cent in the preceding months.
However, credit to the private sector fell slightly to N72.53 trillion in September from N75.88 trillion in August, suggesting that higher rates and cautious lending may have tempered credit expansion.
Global rating agency Moody’s Investors Service has warned that Nigerian banks could face new profitability risks following the CBN’s rate cut. The agency said that lower policy rates might narrow net interest margins, as returns on loans and government securities fall faster than deposit costs adjust. Moody’s also noted that net interest income accounted for 62 per cent of Nigerian banks’ total operating income in 2024, adding that the CRR reduction might provide only partial relief.
Despite the concerns, analysts believe that the strong balance sheets of leading banks and ongoing reforms in the financial system will continue to support profitability and stability in the sector.
