A robust start to 2025 saw ten of Nigeria's Deposit Money Banks (DMBs) collectively generate an estimated N1.83 trillion in profit before tax during the first quarter of the year. This figure, derived from an analysis of the unaudited financial statements of Zenith Bank, Ecobank Transnational Incorporated (ETI), First Holdings Plc, Access Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), United Bank for Africa Plc (UBA), Wema Bank Plc, Fidelity Bank Plc, FCMB, and Stanbic IBTC Holdings Plc, represents a 3.5 per cent increase compared to the N1.77 trillion recorded in the corresponding period of 2024.
The cumulative profit after tax for these ten financial institutions also witnessed an upward trajectory, reaching N1.54 trillion in Q1 2025, a 4.1 per cent rise from the N1.48 trillion reported in Q1 2024.
Sources indicate that this impressive profitability was largely fueled by strategic investments in high-yield government securities, substantial interest income from loans and advances extended to customers, and gains realized from foreign currency trading activities.
However, this positive financial performance occurred against a backdrop of significant economic challenges. During the first quarter of 2025, these DMBs navigated a complex interplay of domestic and global financial pressures. Key challenges included persistent currency volatility and foreign exchange shortages, a double-digit inflation rate coupled with the Central Bank of Nigeria's (CBN) steady interest rate policy, the imperative of digital transformation alongside escalating cybersecurity threats, and intensifying competition from burgeoning Fintech companies and Mobile Money Operators (MMOs).
Despite these headwinds, Zenith Bank maintained its stronghold as the most profitable DMB within Nigeria, across Sub-Saharan African countries, and on a global scale. The bank reported a profit before tax of N350.82 billion in Q1 2025, marking a 10 per cent increase from the N320.19 billion recorded in Q1 2024.
Its profit after tax also saw a significant surge, climbing by 20.7 per cent to N311.8 billion in Q1 2025 from N258.3 billion in the same period last year. This builds upon Zenith Bank's 2024 full-year performance, where it emerged as the most profitable financial institution in Nigeria, followed by GTCO. In FY 2024, Zenith Bank declared a profit before tax of N1.33 trillion, a substantial 66.7 per cent increase from N795.96 billion in 2023.
Interestingly, GTCO and First Holdco were the only DMBs among the ten to experience a decline in profit before tax during Q1 2025, while Wema Bank recorded a remarkable surge in its PBT. GTCO posted a profit before tax of N300.4 billion in Q1 2025, a 41 per cent decrease from the N509.4 billion reported in Q1 2024. This decline occurred despite strong growth in its core earnings lines, with interest income rising by 41.1 per cent and fee income increasing by 41.2 per cent.
Conversely, ETI reported a profit before tax of N267.3 billion in Q1 2025, a 33 per cent increase from N201.46 billion in Q1 2024. Access Holdings also demonstrated positive growth, posting a profit before tax of N222.78 billion, nearly a 10 per cent increase from the N202.74 billion recorded in Q1 2024. UBA announced a profit before tax of N204.3 billion in Q1 2025, a 31 per cent rise from N156.3 billion in the corresponding period of 2024. First Holdco, however, reported a profit before tax of N186.5 billion in Q1 2025, a 20.4 per cent decrease from the N234.2 billion recorded in Q1 2024.
Commenting on UBA's performance, the Group Managing Director, Mr. Oliver Alawuba, stated that the bank's strong Q1 2025 results reflected the effective implementation of its strategy, focused on driving earnings growth, maintaining robust asset quality, and expanding market share. He emphasized the effectiveness of their focus on core banking operations, prudent risk management, and investments in customer-centric innovation.
Other DMBs also reported significant growth in their profit before tax. Stanbic IBTC Holdings announced N116.42 billion, an 86 per cent increase from N62.7 billion in Q1 2024. Fidelity Bank declared N105.77 billion, representing a substantial 168 per cent growth from N39.5 billion in Q1 2024. Wema Bank reported an impressive 269 per cent growth, with its profit before tax reaching N41.2 billion in Q1 2025 compared to N11.15 billion in Q1 2024. FCMB Group posted a profit before tax of N35.02 billion, about a 12 per cent increase from the N31.3 billion declared in Q1 2024.
The MD/CEO of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe, expressed confidence in sustaining the positive momentum, highlighting the triple-digit growth in profit and the continued expansion of earning assets. She affirmed the resilience of the bank's business model and the expectation of delivering even better results in the 2025 financial year.
Investment Banker & Stockbroker, Mr. Tajudeen Olayinka, lauded the resilience of Nigerian DMBs and their crucial role in driving the nation's economy. He pointed out that a significant portion of the recent profit gains stemmed from high yields on government securities and revaluation gains on their net long US dollar positions.
He noted that many DMBs have strategically positioned their balance sheets to benefit from adjustments in the value of the US dollar. This analysis underscores the complex interplay of economic factors and strategic decisions that have shaped the impressive financial performance of Nigeria's leading banks in the first quarter of 2025.