Bank

Nigeria’s banking system entered November awash with liquidity as commercial banks significantly increased their cash deposits with the Central Bank of Nigeria (CBN), signaling heightened risk aversion within the money market. As of Friday, November 7, 2025, total deposits placed by banks under the Standing Deposit Facility (SDF) reached an impressive ₦4.816 trillion, one of the highest levels seen in recent quarters.

This marks a notable rise from the ₦4.424 trillion recorded just two days earlier on November 5, underscoring banks’ preference for the safety of CBN deposits over lending in the interbank or credit markets. Under the SDF, banks earn a 24.8% interest rate for parking idle funds overnight — a relatively high risk-free return compared to potential market exposures.

Banks Prefer Safety Over Lending

The CBN’s weekly financial report showed that banks have been increasingly channeling their excess liquidity into the apex bank’s deposit window rather than extending credit to businesses or engaging in interbank lending. Between October 31 and November 5, total system deposits rose steadily — from ₦2.301 trillion at the end of October to ₦2.916 trillion on November 4, and further to ₦2.994 trillion the next day.

While these figures might suggest abundant liquidity within the financial system, the situation is far more nuanced. Market analysts say that the liquidity is concentrated among a few large deposit money banks (DMBs) that dominate reserves, while smaller institutions continue to face funding pressures. This uneven distribution has kept interbank trading volumes subdued, as smaller banks struggle to access affordable short-term funding.

In effect, the system appears “liquid” on paper, but the money is not circulating efficiently. Rather than channeling funds into productive lending or interbank markets, the bulk of the excess liquidity remains parked at the CBN — a symptom of both risk aversion and structural inefficiencies in Nigeria’s banking framework.

Government Debt Operations Inject Fresh Cash

Mid-week financial data from the CBN showed that the Debt Management Office (DMO) injected additional liquidity into the financial system through primary-market Treasury bill and bond operations. On Thursday, November 6, the DMO successfully raised ₦546.24 billion in new government securities while simultaneously repaying ₦662.76 billion in maturing obligations.

This transaction resulted in a net liquidity injection of approximately ₦116.52 billion, which further boosted the cash positions of banks. The data also revealed that banks’ opening balances — a key measure of available reserves at the start of the trading day — rose from ₦141.11 billion on November 5 to ₦247.17 billion on November 7, indicating stronger reserve buffers.

However, despite these inflows, banks remained hesitant to lend, preferring to hold onto liquidity. This cautious behavior highlights ongoing market uncertainties, particularly around foreign exchange volatility, inflation pressures, and collateral constraints.

Minimal Borrowing Reflects Low Credit Appetite

Interestingly, while deposits at the CBN surged, borrowing through the Standing Lending Facility (SLF) — the CBN’s emergency borrowing window — remained extremely low at just ₦2.85 billion. The sharp contrast between trillions of naira parked in deposits and negligible borrowing underscores one thing: banks are flush with cash but unwilling to take risks.

In a normally functioning money market, banks with surplus liquidity lend to those with temporary shortfalls, creating a vibrant interbank ecosystem. But persistent structural frictions, including liquidity concentration, regulatory uncertainty, and operational inefficiencies, continue to hinder the redistribution of funds. This has led to an environment where liquidity remains “trapped” within the central bank, limiting the multiplier effect on the broader economy.

Policy Implications for the CBN

The surge in deposits presents both opportunities and challenges for the CBN. On one hand, the high volume of funds parked in the SDF gives the central bank flexibility to sterilize excess liquidity — a move that helps curb inflationary pressures. On the other hand, it highlights a weak monetary policy transmission mechanism: ample liquidity in the system is not translating into higher credit growth or lower market interest rates.

The situation could prompt the CBN to deploy additional Open Market Operations (OMO) to absorb some of the surplus cash and stabilize short-term interest rates. Still, as long as risk appetite among banks remains low, such liquidity management measures may only provide temporary relief.

Analysts Caution on Structural Gaps

Market experts warn that sustained reliance on the SDF reflects deeper structural issues within Nigeria’s financial system. While high SDF balances enable the CBN to control short-term liquidity and inflation, they also discourage interbank activity and dampen credit creation, ultimately constraining private-sector growth.

Economists suggest that the solution lies in structural reforms aimed at improving collateral mobility, risk-sharing mechanisms, and market confidence. By creating a more efficient financial infrastructure, liquidity could circulate more evenly, supporting productive investment and economic expansion.

For now, dealers expect overnight interest rates to remain low, barring major fiscal withdrawals or large-scale foreign exchange interventions. However, the broader challenge remains clear: until liquidity in the banking system is effectively channeled into credit and investment, the benefits of rising reserves and abundant cash will remain largely unrealized for the Nigerian economy.

CBN’s Fixed Income Market Overhaul Triggers Regulatory Friction Amid N4.8 Trillion Bank Earnings Boom

The Central Bank of Nigeria’s (CBN) latest move to assume direct control over the nation’s fixed-income trading and settlement framework has sparked a wave of regulatory tensions and institutional pushback within Nigeria’s financial ecosystem.

The apex bank, in a circular issued in late September 2025, announced its intention to migrate fixed-income market operations — including trading and settlement — from the FMDQ Securities Exchange, which is regulated by the Securities and Exchange Commission (SEC), to its proprietary Real-Time Gross Settlement (RTGS) and Scripless Securities Settlement System (S4). The policy, expected to commence in November, marks a fundamental shift in how Nigeria’s government securities market will be managed.

While the CBN argues that the change will improve transparency, efficiency, and data integrity within the financial system, analysts and market participants warn that it could blur the regulatory boundaries between the CBN and SEC, risking a conflict of jurisdiction and market confidence.

Banks Reap N4.8 Trillion from Fixed-Income Investments

Behind the policy battle lies a staggering financial statistic: Nigeria’s largest banks — collectively referred to as the FUGAZ group (First HoldCo, UBA, GTCO, Access Corporation, and Zenith Bank) — have heavily concentrated their assets in fixed-income instruments.

According to financial disclosures to the Nigerian Exchange (NGX), the five banks collectively invested N49.152 trillion in securities and treasury bills during the first nine months of 2025, up from N42.204 trillion recorded at the end of 2024 — a 16.5% increase.

Interest income from these investments surged to N4.8 trillion, a sharp rise from N3.6 trillion earned in the same period last year.

A breakdown of their returns shows:

• Access Corporation: N1.3 trillion

• Zenith Bank: N1.14 trillion

• UBA: N1.03 trillion

• FBN HoldCo: N720.15 billion

• GTCO: N570.23 billion

These figures underscore how heavily banks depend on risk-free, government-backed assets for earnings, rather than expanding credit to the private sector.

Conservative Lending and Risk Aversion

Despite rising deposits, loan-to-deposit ratios among the FUGAZ banks remain conservative, reflecting the industry’s caution in an unstable macroeconomic climate.

Zenith Bank’s loan-to-deposit ratio slipped from 43% to 40%, while Access Corporation’s remained static at 41.2%. UBA’s ratio fell slightly to 28.2%, and GTCO’s rose marginally to 27%. In contrast, First HoldCo stood out by raising its ratio from 60% to 68%, indicating a more aggressive credit posture.

The trend highlights how most banks prefer the safety of government debt securities, particularly amid currency volatility, inflationary pressure, and heightened credit risk.

Legal and Regulatory Concerns

Critics say the CBN’s proposed takeover of fixed-income settlement functions challenges the Investments and Securities Act (ISA 2025), which grants exclusive oversight of securities markets and trading venues to the SEC.

Legal experts contend that while the CBN Act empowers the apex bank to operate payment and settlement systems, it does not extend to managing or regulating securities exchanges.

Dr. Akin Olaniyan, CEO of Charterhouse Limited, warned:

“If the CBN implements its plan without SEC coordination, we risk dual regulation, confusion among market operators, and a potential loss of investor confidence.”

Similarly, Dr. Walker Ogogo, pioneer Registrar of the Institute of Capital Markets Registrars, cautioned that combining trading, settlement, and monetary policy roles under one institution could “create conflicts of interest and deter foreign investors.”

Mixed Market Reactions

Market stakeholders remain divided. Some, like David Adonri, CEO of Highcap Securities Limited, argue that the CBN is within its rights to manage primary market operations — such as auctions for Treasury bills and Federal Government bonds — but that the secondary market should remain under SEC’s purview.

Adonri suggested the CBN’s dissatisfaction with FMDQ’s transparency and trade reporting may have driven the change:

“This move seems aimed at improving visibility and control over transactions that the CBN believes are underreported.”

Others, including Tajudeen Olayinka, CEO of Wyoming Capital and Securities Limited, believe the reform could improve oversight and data reliability if properly integrated with existing systems.

“The reform could democratize access and ensure data integrity, provided both FMDQ and NGX retain equal access to the CBN’s settlement infrastructure,” he said.

Currently, FMDQ exclusively accesses the CBN’s S4 system, giving it dominance in the fixed-income space. Under the new model, both FMDQ and NGX may gain equal access, potentially reducing concentration and fostering competition.

The Road Ahead

The CBN’s fixed-income overhaul represents one of the most significant structural shifts in Nigeria’s financial market in decades. While its promise of transparency and efficiency appeals to many, it also tests the limits of the CBN’s legal authority and Nigeria’s regulatory balance.

Its success — or failure — will depend on whether collaboration, not control, defines the next phase of Nigeria’s financial sector reform.

The legal face-off between Fidelity Bank Plc and Sagecom Concept Limited took a new turn on Monday as the dispute returned to the Supreme Court of Nigeria. At the hearing, Sagecom urged the apex court to dismiss a fresh motion filed by Fidelity Bank seeking a review of a judgment debt allegedly amounting to ₦225 billion, arguing that the bank’s application was a frivolous attempt to reopen a settled case.

The motion was heard before a five-member panel of justices led by Justice Mohammed Garba, with both sides represented by an array of senior legal practitioners.

Sagecom’s Argument: “This is an Abuse of Process”

Counsel to Sagecom, Mr. Adeyinka Olumide-Fusika (SAN), leading a high-profile legal team including Muiz Banire (SAN), Chief Ayotunde Ogunleye (SAN), and Adeola Adedipe (SAN), urged the Supreme Court to reject Fidelity Bank’s motion on the grounds that it lacked merit and constituted a clear abuse of judicial process.

Olumide-Fusika told the panel that the Supreme Court had already delivered a final and conclusive judgment in April 2025, affirming Sagecom’s position as the judgment creditor. He emphasized that all related appeals had been dismissed and that Fidelity Bank’s current application was a veiled attempt to relitigate settled matters under the guise of seeking clarification.

“This application is unwarranted and a clear abuse of the judicial process. All appeals arising from this matter have been determined conclusively by this apex court,” Olumide-Fusika said.

He maintained that the issues raised by the bank had been exhaustively addressed in prior rulings and that the judgment, as delivered, was “clear, final, and unambiguous.”

Fidelity Bank’s Position: “We Seek Clarification, Not Review”

Representing Fidelity Bank, Chief Wole Olanipekun (SAN), alongside other senior advocates including Chief Kanu Agabi (SAN), Onyechi Ikpeazu (SAN), and Kemi Pinheiro (SAN), argued that the motion — marked SC/CV/602/2021 — was not an attempt to reopen the case but rather to seek clarification on the computation of the judgment sum and applicable exchange rate.

Olanipekun explained that the bank’s motion, filed on October 8, 2025, asked the Supreme Court to correct what it described as “computational inconsistencies” in the total judgment amount. Fidelity Bank asserted that, based on its calculations, the debt stood at ₦30.19 billion as of April 11, 2025 — a figure dramatically lower than Sagecom’s claim of ₦225.28 billion.

“This application has been brought with every sense of responsibility. It is not intended to undermine the court’s authority but to ensure accuracy and legal clarity in executing the judgment,” Olanipekun submitted.

The bank’s counsel emphasized that Fidelity was only seeking the court’s interpretation of the proper monetary value of the ruling, given that parts of the original award were denominated in foreign currency.

Sagecom’s Counter: “Judgment Needs No Clarification”

In its counter-affidavit, deposed on October 23, 2025, by Mr. Samuel Miriki, Sagecom’s Managing Director, the company maintained that the judgment was explicit and that no aspect required clarification. The affidavit dismissed Fidelity Bank’s claim that the ruling involved ambiguities in foreign currency conversion, insisting that the decision was self-explanatory and final.

Sagecom argued that Fidelity’s move was a deliberate attempt to stall payment and delay enforcement of the court’s decision. It further objected to a deposition made by Fidelity’s Executive Director, Mr. Stanley Amuchie, calling it irrelevant and inconsistent with the finality of the Supreme Court’s judgment.

“None of the parties is ignorant of what the judgment stated and meant,” Sagecom said in its filing. “The claim that clarification is needed is a calculated effort to reopen a concluded matter.”

After hearing arguments from both sides, Justice Garba reserved ruling on the matter, noting that the court would deliver its decision at a later date.

Background of the Dispute

The legal conflict traces back to a 2018 ruling by the Lagos State High Court in suit number LD/1734/2011, involving Fidelity Bank, G. Cappa Plc, and Sagecom Concept Ltd. The case centered on unearned rent and property-related compensation for residential flats located at 23/25 Probyn Road, Ikoyi, Lagos.

In that judgment, delivered on January 30, 2018, the trial court held Fidelity Bank and G. Cappa liable to pay Sagecom compensation. Fidelity’s appeal to the Court of Appeal was dismissed, and its further challenge at the Supreme Court met the same fate when the apex court, on April 11, 2025, upheld the lower courts’ rulings, effectively making Sagecom the judgment creditor.

Fidelity’s latest motion, therefore, represents an attempt to revisit the financial computation of that final judgment — an action Sagecom insists is both procedurally improper and legally untenable.

Bank’s Clarification

In May 2025, Fidelity Bank confirmed the existence of the Supreme Court judgment but maintained that, based on its internal computation, the true settlement figure stood at ₦14 billion, not ₦225 billion. The bank attributed the dispute to an old credit facility granted by the now-defunct FSB International Bank to G. Cappa Plc in 2002, which later became entangled in the litigation with Sagecom.

As both parties await the Supreme Court’s decision, the case underscores the complexity of enforcing high-value judgments in Nigeria’s financial and legal sectors — and the delicate balance between finality in justice and the right to seek judicial clarification.

The United Bank for Africa (UBA) Plc, Africa’s Global Bank, has announced a strong financial performance for the third quarter ended September 30, 2025, delivering consistent growth in profitability and maintaining a robust balance sheet despite a challenging macroeconomic environment.

According to the bank’s audited financial results released to the Nigerian Exchange Limited (NGX) on Thursday, UBA recorded a profit after tax (PAT) of N537.53 billion, representing a 2.3% increase from N525.31 billion in the corresponding period of 2024. The modest yet steady rise underscores the Group’s sustained earnings momentum, efficient risk management, and strategic growth execution across its global operations.

Earnings Growth and Profitability

UBA’s gross earnings rose to N2.469 trillion as of September 2025, up 3.0% from N2.398 trillion recorded a year earlier. The performance was driven largely by higher interest income and improved transaction volumes across its African subsidiaries and international branches.

The bank’s net interest income also improved significantly, climbing 6.2% to N1.172 trillion, up from N1.103 trillion in the previous year. However, profit before tax (PBT) slipped slightly by 4.1%, settling at N578.59 billion, compared to N603.48 billion in 2024. Despite this dip, the bank achieved higher profit after tax, reflecting effective cost optimisation and tax management strategies.

Commenting on the results, Oliver Alawuba, UBA’s Group Managing Director/CEO, praised the bank’s ability to deliver solid results in a volatile economic environment. “We have continued to demonstrate the strength, resilience, and diversification of our franchise across all markets. Our performance this quarter highlights prudent balance sheet management, innovation, and strong customer engagement,” he said.

Balance Sheet Strength and Shareholders’ Value

UBA maintained its reputation for financial strength and stability, reporting total assets of N32.492 trillion, a 7.2% increase from N30.323 trillion at the end of December 2024. The rise was driven by focused deposit mobilisation and strategic investments in earning assets.

Customer deposits grew by 7.7% to N26.54 trillion, up from N24.651 trillion at the end of 2024, demonstrating sustained customer confidence in the bank’s service delivery and digital banking infrastructure.

Similarly, shareholders’ funds surged by 25.8% to N4.301 trillion, from N3.418 trillion in December 2024 — a testament to the bank’s strong internal capital generation, profitability, and investor confidence.

Alawuba noted that the successful completion of Phase II of UBA’s Rights Issue, as part of Nigeria’s ongoing recapitalisation drive, has further strengthened the bank’s capital position. “Our recapitalisation efforts have significantly boosted our capital base, supporting our continued expansion and ability to seize growth opportunities across markets,” he said.

Focus on Sustainable and Digital Growth

UBA’s Executive Director of Finance and Risk, Ugo Nwaghodoh, explained that the Group’s steady growth in gross earnings to N2.47 trillion was largely driven by a 10.1% increase in interest income and a 6.2% uplift in net interest income. He added that UBA’s capital adequacy and liquidity ratios remain well above regulatory requirements, providing strong buffers for sustained growth.

“Shareholders’ funds expanded by 26% to N4.3 trillion, underscoring investors’ confidence in our strategy. Our focus remains on disciplined execution, efficient cost management, and delivering consistent value,” Nwaghodoh stated.

Looking ahead, UBA plans to consolidate its performance by deepening digital innovation and expanding its non-interest income base. The bank aims to leverage technology to enhance customer experience, increase financial inclusion, and boost profitability.

UBA’s Continental and Global Footprint

United Bank for Africa stands as one of the most diversified financial institutions on the African continent. With operations in 20 African countries and offices in the United Kingdom, United States, France, and the United Arab Emirates, the bank serves over 45 million customers globally. It employs more than 25,000 staff, providing retail, commercial, and institutional banking services across diverse markets.

Through its digital transformation strategy, UBA continues to lead in financial inclusion and cross-border payments, supporting trade and investment flows within Africa and between the continent and major global markets.

Conclusion

UBA’s third-quarter results reflect a resilient business model and strong fundamentals. Despite currency volatility, inflationary pressures, and tight monetary conditions, the Group continues to post solid earnings, a growing balance sheet, and expanding shareholder value. With a profit after tax of N538 billion and assets surpassing N32 trillion, UBA reaffirms its position as one of Africa’s most stable and profitable financial institutions, well-poised for sustained growth into 2026 and beyond.

Zenith Bank Plc has reported impressive financial results for the nine months ending September 30, 2025, underscoring the Group’s strong operational resilience and strategic adaptability in a challenging macroeconomic environment. The bank posted a pre-tax profit of N917.4 billion, demonstrating its ability to maintain robust profitability amid inflationary pressures, fluctuating interest rates, and evolving regulatory dynamics.

For the third quarter (Q3) alone, Zenith recorded a pre-tax profit of N291.78 billion, a 6% year-on-year growth from N275.8 billion in Q3 2024. Despite headwinds in the domestic and global markets, the bank’s performance remained driven by sustained growth in interest income and prudent cost management.

Solid Revenue Growth and Earnings Momentum

According to the unaudited financial statement, gross earnings surged by 16.29% year-on-year (YoY), reaching N3.37 trillion in the first nine months of 2025, compared to N2.89 trillion in the same period of 2024. This growth was fueled primarily by a 40.7% increase in interest income, reflecting Zenith’s ability to optimize its asset portfolio and enhance yields across key earning assets.

Interest income rose to N2.74 trillion from N1.95 trillion, driven by strong performance in both loans and advances (N1.36 trillion) and investment securities, which contributed a combined N1.14 trillion—comprising N740.5 billion from treasury bills and N400.3 billion from other investment instruments.

On the expense side, interest expenses climbed by 22.2% to N814.2 billion, largely due to higher funding costs associated with the 9.8% growth in customer deposits, which now stand at N23.69 trillion. Nonetheless, the Group maintained a strong net interest income position of N1.93 trillion, representing a remarkable 50.4% increase compared to the same period last year.

After accounting for impairment charges of N781.5 billion, net interest income after impairment stood at N1.15 trillion, a 42.2% rise from N802.9 billion in 2024. Interestingly, impairment costs dropped significantly in Q3 2025 to N20.71 billion, down from N62.5 billion in Q3 2024—an indication of improving loan quality and effective credit risk management.

Mixed Results in Non-Interest Income

Zenith Bank’s non-interest income came in at N539.7 billion, showing an 18.4% year-on-year increase. However, when compared to the bank’s exceptional 2024 trading performance, there was a marked 38% decline in total trading income. This was mainly due to a 60% drop in gains from other trading books, which fell from N755 billion in 2024 to N261 billion in 2025.

The bank even recorded a Q3 trading loss of N222.4 billion, reflecting market volatility and adjustments in foreign exchange positions.

Despite this, fees and commission income remained a strong contributor, increasing by 10.45% to N299 billion. Key drivers included account maintenance fees (N64 billion) and fees on electronic products (N59 billion), supported by continued growth in digital banking adoption, payment processing, and trade finance operations.

Balance Sheet Strength and Liquidity Management

Zenith Bank’s total assets rose modestly by 2.6% to N31.18 trillion, driven by strategic asset allocation and growth in liquidity buffers. Cash and bank balances increased significantly to N6.85 trillion from N5.38 trillion a year earlier, while investment securities rose by 2% to N4.86 trillion.

The bank’s treasury bills portfolio surged by 46% to N4.2 trillion, signaling a deliberate effort to optimize liquidity and manage risk in a volatile interest rate environment. Loans and advances to customers stood at N9.37 trillion, down slightly by 1.1%, as the Group maintained a conservative lending approach to safeguard asset quality.

On the liabilities side, customer deposits grew by 9.8% to N23.69 trillion, reinforcing depositor confidence and Zenith’s strong retail and corporate banking franchise.

Leadership Commentary and Strategic Outlook

Commenting on the results, Group Managing Director/CEO, Dame Dr. Adaora Umeoji, OON, stated:

“Zenith delivered a solid nine-month performance despite a demanding backdrop. We stayed disciplined on risk, deepened customer relationships across retail and corporate segments, and deployed our balance sheet where we saw quality opportunities.”

Looking ahead, Umeoji emphasized the bank’s commitment to sustainable growth and shareholder value creation:

“As we enter the final quarter, our priorities remain clear—service excellence, prudent growth, and sustained value creation for our shareholders.”

Market Reaction and Shareholder Value

Following the release of the Q3 2025 results, Zenith Bank’s share price climbed by 38.5% year-to-date (YTD), closing at N63 per share, up from N45.50 at the start of the year. This rally reflects investor confidence in the bank’s consistent earnings performance, robust capital position, and its reputation as one of Nigeria’s most efficiently managed financial institutions.

Zenith Bank’s nine-month 2025 results highlight its resilience and strategic agility in navigating Nigeria’s complex financial environment. With solid growth in gross earnings, improved interest income, and a strong balance sheet, the Group remains well-positioned to deliver sustainable profitability.

The combination of digital innovation, strong risk governance, and strategic cost discipline will likely continue to drive Zenith Bank’s performance into the final quarter of 2025 and beyond—solidifying its position as a leader in Nigeria’s banking sector.

United Bank for Africa (UBA) Plc has released its unaudited financial results for the nine months ended September 30, 2025, recording a profit after tax of N537.5 billion, a modest 2.33% increase compared to N525 billion reported in the same period of 2024. The improvement, though relatively small, highlights the bank’s continued resilience amid macroeconomic challenges and shifting market conditions.

UBA’s gross earnings rose 2.96% year-on-year to N2.47 trillion in the period under review, up from N2.398 trillion in 2024. The bank attributed the growth largely to higher interest income, supported by increased lending activities and investment in fixed-income securities.

Key Financial Highlights (9M 2025 vs. 9M 2024)

• Gross Earnings: N2.47 trillion (↑2.9% YoY)

• Net Interest Income: N1.17 trillion (↑6.2% YoY)

• Non-Interest Revenue: N310.1 billion (↓28.8% YoY)

• Operating Profit (Pre-Impairment): N1.42 trillion (↑0.6% YoY)

• Profit Before Tax: N578.6 billion (↓4.12% YoY)

• Profit After Tax: N537.5 billion (↑2.3% YoY)

• Total Assets: N32.49 trillion (↑8% YoY)

• Customer Deposits: N23.80 trillion (↑8.7% YoY)

• Loans and Advances to Customers: N7.20 trillion (↑3.5% YoY)

Interest Income as a Key Driver

Interest income served as the primary growth engine for UBA’s performance. The bank recorded a 10.1% increase in interest income to N1.98 trillion, largely supported by an expanding loan portfolio and gains from investment securities.

A significant portion of this growth came from loans and advances to customers, which rose 3.5% year-on-year to N7.20 trillion. This was driven by both corporate and retail segments, reflecting sustained demand for credit despite rising interest rates and tighter liquidity conditions.

Additionally, the bank’s investment securities portfolio — including amortized cost and fair-value instruments — contributed meaningfully to the earnings boost, as yields on government and corporate securities improved during the period.

However, UBA’s interest expenses increased sharply by 16.27% to N808.72 billion, reflecting higher funding costs due to increased deposit rates and competitive pressures in the Nigerian banking industry. Despite this, the bank maintained a strong net interest margin, with net interest income growing 6.18% to N1.17 trillion.

Decline in Non-Interest Revenue

The bank’s non-interest income declined significantly to N310.1 billion, representing a 28.8% drop from N435.8 billion in the same period of 2024. The sharp fall was attributed primarily to a 77.3% decline in net trading and foreign exchange income, which dropped to N41.4 billion amid market volatility and reduced forex trading opportunities.

Other non-interest income categories also weakened, though the bank recorded a 4.3% rise in fees and commissions, supported by increased customer transactions, digital banking expansion, and higher trade finance revenues. This growth in core fee income provided a partial cushion against the drop in trading gains.

Lower Impairment Charges Support Profitability

One of the bright spots in UBA’s performance was a notable improvement in asset quality. The net impairment charge on loans and receivables fell sharply to N56.89 billion, down 54% from N123.48 billion in 2024. This improvement reflects more effective risk management, tighter credit underwriting standards, and a recovery in previously impaired loans.

After accounting for these impairment adjustments, net interest income after impairment stood at N1.11 trillion, up 2.7% year-on-year. The reduction in credit losses helped sustain profitability despite pressures on non-interest revenue streams.

Strong Balance Sheet Expansion

UBA’s balance sheet continued to strengthen, with total assets rising 8% to N32.49 trillion. The growth was driven by increases in cash and bank balances, investment securities, and loans and advances.

• Cash and bank balances rose from N8.16 trillion in December 2024 to N9.11 trillion, a growth of N951 billion.

• Investment securities increased by 8.5% to N13.59 trillion, benefiting from reinvestment in high-yield assets.

• Loans and advances to customers grew modestly by 3.5%, underscoring UBA’s cautious approach to credit expansion amid economic uncertainties.

On the liabilities side, customer deposits climbed 8.7% to N23.80 trillion, reinforcing customer confidence in the bank’s stability and brand strength. Shareholders’ funds also expanded to N4.30 trillion, up from N3.42 trillion at the end of 2024, supported by retained earnings.

Market Reaction and Outlook

Following the release of the results, UBA’s stock price rose 1.9%, closing at N39.75 per share from a previous N39.00. Year-to-date, the stock has appreciated 16.9%, outperforming many peers in the Nigerian banking sector.

Analysts note that while UBA’s earnings growth remains moderate, the underlying fundamentals are strong. The combination of higher interest income, lower impairment losses, and sustained balance sheet growth positions the bank for continued stability.

However, challenges persist in the form of declining non-interest revenue and rising funding costs. Going forward, UBA is expected to focus on enhancing digital banking efficiency, expanding cross-border operations, and improving cost optimization to maintain its competitive edge.

With its robust financial base and diversified revenue streams across 20 African markets, UBA remains well-positioned to deliver steady performance into the final quarter of 2025 and beyond.

Ecobank Transnational Incorporated (ETI) has announced another impressive performance in its unaudited Q3 2025 financial report, recording a 47% year-on-year increase in pre-tax profit to N394.6 billion, supported by strong growth in both interest and non-interest income streams.

Profit after tax also surged 48% to N268.5 billion, even as the bank absorbed higher provisioning and a one-time loss from discontinued operations. This robust third-quarter showing lifted the Group’s nine-month pre-tax profit to N1.01 trillion, representing a 42% jump from the same period in 2024, while profit after tax climbed 43% to N702.4 billion.

Strong Core Performance Across Key Metrics

Ecobank’s growth was broad-based, powered by rising interest income, digital adoption, and foreign exchange gains across its 33-country network.

Key Highlights (Q3 2025 vs Q3 2024):

• Net Interest Income: N588.1 billion (+34%)

• Non-Interest Revenue: N381.5 billion (+12%)

• Operating Profit (Pre-Impairment): N523.4 billion (+50%)

• Pre-Tax Profit: N394.6 billion (+47%)

• Post-Tax Profit: N268.5 billion (+48%)

• Total Assets: N47.97 trillion (+11%)

• Customer Deposits: N35.68 trillion (+13%)

• Customer Loans & Advances: N16.78 trillion (+9%)

• Shareholders’ Funds: N3.69 trillion (+33%)

The bank’s total operating income reached N969.6 billion, a 24% increase from the same quarter in 2024, reflecting a balanced contribution from both interest-earning activities and digital-driven fees.

Interest Income, FX Gains, and Digital Services Drive Growth

Ecobank’s lending activities continued to expand, with higher interest rates and loan volumes pushing total interest income to N841.7 billion, up 20% year-on-year.

The Group’s digital platforms and payment solutions also contributed meaningfully, as fee and commission income grew to N274.3 billion. The performance was further boosted by treasury and FX trading income, which rose 19% to N154.3 billion, as Ecobank effectively managed market volatility and exchange rate movements.

This mix of diversified revenue sources underlines Ecobank’s ability to balance growth between traditional banking and digital services, while maintaining a strong presence across multiple African markets.

Cost and Risk Discipline Remain Central

Despite operating in regions grappling with high inflation and currency instability, Ecobank kept expenses under control. Operating costs rose only 3% to N446.2 billion, showing disciplined cost management across subsidiaries.

However, the bank took a more cautious stance on credit risk, increasing loan impairment provisions by 64% to N129.7 billion. This approach indicates proactive risk management amid ongoing macroeconomic uncertainty in key African economies.

Strengthened Balance Sheet and Capital Position

Ecobank’s balance sheet remains solid, with total assets rising to N47.97 trillion and shareholders’ funds expanding by 33% to N3.69 trillion.

This growth reflects a combination of strong retained earnings, foreign exchange translation gains, and fair value revaluation of assets. The result is a stronger capital buffer, providing resilience against external shocks and currency swings across the bank’s pan-African footprint.

CEO’s Outlook: Resilience and Sustainable Growth

Commenting on the results, Jeremy Awori, Group CEO of Ecobank, said the third-quarter performance underscores the Group’s resilience and operational strength despite macroeconomic headwinds.

“We’re pleased with the strong momentum across our businesses this quarter. Our continued investment in digital capabilities and our ability to serve customers across 33 markets is paying off. Despite inflationary and FX pressures, we’ve delivered solid earnings, strengthened capital, and deepened customer trust,” Awori stated.

Outlook: Momentum Continues, but Risks Persist

Ecobank’s Q3 2025 results highlight solid operational execution, with robust revenue growth, improved margins, and stronger capital adequacy. The bank’s diversified income base and pan-African reach continue to position it as one of the continent’s most resilient financial institutions.

However, challenges remain. Persistent currency depreciation in some markets, inflation-driven cost pressures, and rising credit risks could impact earnings stability in the quarters ahead.

Nonetheless, Ecobank’s strong capital base, risk management discipline, and expanding digital footprint provide a firm foundation for sustained growth into 2026.

Nigeria’s top ten listed banks collectively posted a pretax profit of ₦2.7 trillion in the first half (H1) of 2025, according to data compiled from their half-year financial statements.

While this represents a 12% decline from the ₦3.16 trillion recorded in the same period of 2024, analysts note that the results still underscore the resilience and stability of Nigeria’s banking sector amid a challenging macroeconomic environment.

Profit before tax (PBT) remains a key indicator of banks’ financial health, showing how much they earn after accounting for operational and credit costs but before taxation. Investors and regulators use it to gauge operational efficiency and sectoral trends.

Among the top-tier institutions, most banks recorded strong core income growth despite tighter monetary conditions, FX volatility, and elevated operating expenses.

10. Jaiz Bank — ₦14.7 Billion

Jaiz Bank Plc ranked 10th among Nigeria’s most profitable banks in H1 2025, with a pretax profit of ₦14.7 billion, up 27.64% from ₦11.5 billion in the same period last year.

The non-interest bank saw impressive growth in its financing income, which surged 31.9% to ₦19.6 billion, driven mainly by Murabaha (cost-plus financing) transactions that contributed ₦13.8 billion, and Ijara (leasing) income at ₦4.7 billion.

Total income from investing activities climbed to ₦24.3 billion, boosting gross income to ₦44 billion. After accounting for a modest impairment charge of ₦351.5 million, net income after provisions rose 29.5% to ₦43.6 billion.

The bank also earned ₦2.4 billion in fees and commissions, while operating expenses totaled ₦18.4 billion, resulting in the ₦14.7 billion pretax profit.

As of June 2025, total assets stood at ₦964 billion, reflecting a 10.8% decline, while retained earnings held steady at ₦15.6 billion.

The Broader Picture

The first-half results reaffirm that Nigeria’s banking sector remains profitable and operationally sound, despite rising costs, naira volatility, and evolving regulatory pressures.

With Fidelity Bank yet to publish its H1 results, the ranking may still shift slightly, but early data suggest that the top banks continue to demonstrate robust earnings capacity, aided by strong balance sheets, higher interest margins, and growing digital transaction volumes.

As the second half of 2025 unfolds, analysts will be watching closely to see whether banks can sustain profitability amid tightening liquidity conditions, high inflation, and potential interest rate adjustments by the Central Bank of Nigeria (CBN).

Would you like me to expand this rewrite to include all 10 banks with their individual summaries (similar to the Jaiz Bank section)? I can recreate the full ranking list in a clean, readable format.

First City Monument Bank (FCMB) has rolled out a new feature on its mobile app that allows customers to open investment accounts and invest directly in mutual funds managed by FCMB Asset Management, the wealth management arm of FCMB Group Plc.

The innovation marks a major milestone in FCMB Group’s digital transformation drive, aimed at building an all-in-one financial ecosystem that integrates banking, payments, and investment services on a single platform.

Seamless Access to Investment Opportunities

With the new feature, FCMB customers can now explore a variety of mutual fund options designed to suit different financial goals and risk appetites. These include:

• Legacy Money Market Fund – a low-risk investment for those seeking liquidity and stability.

• Legacy Equity Fund – ideal for investors pursuing long-term growth through equities.

• Legacy Debt Fund – focused on local-currency bonds for predictable income.

• Legacy USD Bond Fund – a dollar-denominated option for investors seeking foreign currency exposure.

This digital integration allows users to invest, monitor performance, and grow their portfolios directly from their smartphones without visiting a physical branch.

Enhancing Financial Inclusion Through Technology

Speaking on the launch, Yemisi Edun, Managing Director of FCMB, said the initiative reflects the bank’s mission to simplify financial management for customers and empower them to make better financial decisions.

“What we are building goes beyond digital convenience,” Edun explained. “It is about creating a connected ecosystem where banking, payments, and investments work together to serve customers’ broader financial needs. By integrating mutual funds into the FCMB Mobile App, we’re enabling customers to move seamlessly from saving to investing within one trusted platform.”

Echoing this, James Ilori, Chief Executive Officer of FCMB Asset Management Limited, emphasized the goal of making investing more accessible.

“Our mission is to democratize access to investment opportunities and make wealth creation simple and inclusive. By bringing mutual funds to the FCMB Mobile App, we’re enabling anyone, anywhere, to start investing confidently and build a sustainable financial future,” he said.

Driving a Unified Digital Financial Ecosystem

The launch underscores FCMB Group’s broader strategy of building a digitally inclusive ecosystem that connects its various financial services—banking, consumer finance, and asset management—under one platform.

This initiative is expected to expand access to professional investment opportunities, encourage financial literacy, and drive long-term wealth creation among Nigerians.

Customers can download or update the FCMB Mobile App from the Google Play Store or Apple App Store to start exploring these investment options today.

About FCMB Group

FCMB Group Plc is a leading financial services holding company with subsidiaries across banking, consumer finance, asset management, and other financial sectors.

About FCMB Asset Management

FCMB Asset Management Limited (FCMBAM), licensed by the Securities and Exchange Commission (SEC) of Nigeria, provides portfolio management and investment advisory services to individuals and institutional investors.