Top Banks Post N1.83trn Q1 Profits Ahead of Recapitalisation Deadline
Samuel Mobolaji
As the April 2026 recapitalisation deadline draws closer, 10 listed banks have declared a combined N1.83 trillion in pre-tax profits for the first quarter of 2025, demonstrating resilience and strategic positioning despite persistent macroeconomic challenges.
The banks—Zenith Bank, GTCO, Wema Bank, ETI, First HoldCo, UBA, Access Holdings, FCMB Group, Fidelity Bank, and Stanbic IBTC Holdings—maintained strong profitability on the back of forex adjustments, high-yielding assets, and gains from currency revaluation. Most of them had earlier tapped the capital market to raise funds to meet the recapitalisation requirements but still posted robust earnings in Q1.
Unaudited financial statements reviewed by analysts showed that, except GTCO and First HoldCo, all the banks recorded year-on-year profit growth. GTCO posted N300.38 billion, a 41 per cent drop from N509.35 billion in Q1 2024, while First HoldCo recorded N186.48 billion, down 20.4 per cent from N234.17 billion.
Zenith Bank led the pack with N350.82 billion, up 10 per cent from N320.19 billion. Fidelity Bank recorded the most significant growth with a pre-tax profit of N105.77 billion, a 168 per cent surge from N39.50 billion a year earlier. ETI, Access Holdings, and UBA posted N267.31 billion, N222.78 billion, and N204.27 billion respectively. Stanbic IBTC Holdings reported N116.42 billion, while Wema Bank and FCMB Group declared N41.16 billion and N35.02 billion, respectively.
Commenting on GTCO’s results, Group CEO Mr Segun Agbaje expressed optimism, noting that the Group remains on track to match or surpass its full-year 2024 performance, citing strong fundamentals and growing customer base.
UBA’s Group Managing Director, Mr Oliver Alawuba, attributed the bank’s performance to prudent risk management and customer-focused innovation, emphasising the importance of core banking discipline in volatile times.
Market analysts linked the strong earnings to strategic forex positioning, government securities, and customer lending. Mr Tajudeen Olayinka noted that most DMBs had structured their balance sheets to benefit from currency volatility and high-yield assets.
Mr Ambrose Omordion of InvestData Consulting warned, however, that future performance will depend heavily on how well banks control costs, manage naira volatility, and uphold asset quality. He said 2025 will test banks’ resilience, as the sector navigates inflation and exchange rate risks while leveraging reforms and innovation for growth.
CardinalStone Research analysts described the ongoing recapitalisation as a near-to-medium term positive for the industry. They noted that while short-term dilution may affect shareholders, the influx of capital will enable banks to expand interest-earning assets and upgrade technology platforms. However, they cautioned that lower fair value gains on derivatives could weigh on non-interest income if exchange rate stability persists.
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