Nigerian Banks Earn Record N14.7tn Interest Income in Nine Months Amid High-Rate Economy
Nine of Nigeria’s biggest banks collectively earned a staggering ₦14.7 trillion in interest income between January and September 2025, according to data compiled from their unaudited financial statements filed with the Nigerian Exchange Limited. The figure marks a 27.7% rise from ₦11.53 trillion recorded in the same period of 2024, underscoring how a high-interest-rate environment continues to boost bank earnings despite broader credit slowdowns.
Leading the pack was Access Holdings Plc, parent company of Access Bank, which reported ₦2.90 trillion in interest income—a 21.1% jump from last year. Close behind was Zenith Bank Plc with ₦2.74 trillion, reflecting a robust 40.8% increase. Ecobank Transnational Incorporated followed with ₦2.33 trillion, while First HoldCo, owner of FirstBank, reported ₦2.29 trillion. Together, these four institutions accounted for the bulk of the sector’s interest income in the review period.
Other top performers included Guaranty Trust Holding Company (GTCO) with ₦1.23 trillion, and United Bank for Africa (UBA), which grew modestly by 10.1% to ₦1.98 trillion. Wema Bank stood out for its rapid growth, posting a 72.7% surge to ₦396.95 billion, while Stanbic IBTC Holdings and Sterling Financial Holding Company also reported impressive gains of 37.2% and 38.7%, respectively. Analysts say the surge in earnings reflects the extended period of elevated benchmark rates, which have kept lending and investment returns high.
The sustained rise in interest income coincides with the Central Bank of Nigeria’s (CBN) recent decision to cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, marking its first rate reduction in years. The adjustment came as the CBN sought to balance disinflationary progress with economic activity. However, the move has already begun to cool credit demand, with total private sector lending dropping to ₦72.53 trillion in September from ₦76.13 trillion in July.
Meanwhile, Moody’s Investors Service has warned that the CBN’s rate cut could threaten banks’ profitability, as lower yields on loans and securities may erode net interest margins. The agency noted that deposit costs tend to adjust more slowly than lending rates, potentially squeezing earnings. Still, analysts say Nigerian banks remain well-positioned, with strong capitalization and resilient income streams likely to cushion the short-term impact of the policy shift.
source: punch