In a strong showing for Nigeria’s banking sector, nine major financial institutions reported a total of N14.72 trillion in interest income between January and September 2025. This marks a 27.68% increase from the N11.53 trillion recorded during the same period in 2024 The Punch.
The banks included in the analysis are:
Access Holdings Plc
First Bank Holdings (First HoldCo)
Zenith Bank Plc
United Bank for Africa (UBA)
Guaranty Trust Holding Company (GTCO)
Stanbic IBTC Holdings
Sterling Financial Holding Company
Wema Bank
Ecobank Transnational Incorporated
These institutions filed their unaudited third-quarter results with the Nigerian Exchange Limited, revealing robust growth in interest income, which is the revenue earned from lending activities and investments such as certificates of deposit The Punch.
The surge is largely attributed to the Central Bank of Nigeria’s sustained interest rate of 27.5%, which has made lending more profitable for banks. However, this growth in interest income is tempered by a corresponding rise in interest expenses, which has narrowed net margins for some institutions Legit.ng.
In Q1 2025 alone, the banks earned N4.18 trillion, and by mid-year, the figure had climbed to N4.85 trillion, representing a 114.95% increase compared to 2023 Legit.ng MSN. Analysts suggest that while the income boost reflects strong lending activity, it also signals potential stress for borrowers facing higher repayment costs.
The performance underscores the resilience of Nigeria’s financial sector amid economic challenges, but also raises questions about credit accessibility, loan default risks, and the impact of high interest rates on SMEs and consumers.
