Reported by Weng Patrick Atokor l Journalist at Weng Global
Nigeria’s banking sector recorded strong aggregate profitability in the first nine months of 2026, with eight major banking groups posting a combined profit after tax of ₦3.47 trillion, representing a 12.5 per cent increase from the ₦3.08 trillion recorded during the corresponding period of 2025.
The performance, covering the nine months ended September 30, 2026, highlights the continued expansion of Nigeria’s banking industry amid changing interest rate conditions, rising operating costs and pressure on lending margins.
The financial results also showed that the banks expanded their lending activities and attracted more customer deposits, indicating continued growth in their balance sheets and financial intermediation activities.
The eight banking groups covered in the reported figures are First HoldCo, Ecobank Transnational Incorporated, Zenith Bank, Access Holdings, Guaranty Trust Holding Company (GTCO), Stanbic IBTC Holdings, Wema Bank and Sterling Financial Holdings. Legit.ng – Nigeria news. +1
The figures were compiled from the institutions’ unaudited nine-month financial statements.
First HoldCo leads banks in profit after tax
First HoldCo emerged as the most profitable institution among the eight banking groups, recording ₦744.45 billion in profit after tax during the review period.
Ecobank Transnational Incorporated followed with ₦707.40 billion, while Zenith Bank reported ₦675.83 billion.
The results placed the three institutions at the top of the profitability ranking, although their earnings growth reflected different business conditions and revenue sources.
Wema Bank also recorded a significant improvement, with profit after tax increasing by 72.6 per cent to ₦219.84 billion from ₦127.40 billion in the corresponding period of 2025.
The performance made Wema one of the fastest-growing institutions among the banks covered in the analysis.
However, GTCO recorded a decline in profit after tax, falling by approximately 20 per cent to ₦200.39 billion from ₦250.63 billion a year earlier.
The contrasting results demonstrate that profitability growth was not evenly distributed across Nigeria’s banking industry. Legit.ng – Nigeria news.
Combined profit before tax rises to ₦4.68 trillion
Beyond their after-tax earnings, the eight banking groups recorded combined profit before tax of ₦4.68 trillion, representing a 16.3 per cent increase from ₦4.03 trillion in the corresponding nine-month period of 2025.
Profit before tax measures earnings before companies deduct corporate income taxes, while profit after tax represents the amount remaining after those taxes have been accounted for.
The difference between the two measures is important when comparing banking performance because a bank’s reported profitability can change depending on taxation and other adjustments.
The figures indicate that the banks maintained strong aggregate earnings, although individual institutions experienced different levels of growth.
Loans and customer deposits expand
The banks’ combined loan portfolios increased by 4.9 per cent to ₦61.26 trillion from ₦58.37 trillion in the corresponding period of 2025.
Customer deposits also rose by 8.9 per cent to ₦149.57 trillion, compared with ₦137.41 trillion recorded a year earlier.
The increase in deposits suggests that the banking groups continued to attract funds from individuals, businesses and other customers.
For banks, deposits represent an important source of funding for lending, investment and other financial activities.
The expansion in loan portfolios also indicates that the institutions continued extending credit to customers and businesses.
However, growth in lending does not automatically translate into stronger financial performance. Banks must also manage loan repayment risks, credit quality, funding costs and operating expenses.
Legit.ng – Nigeria news. +1
Lower loan-loss provisions support banking profits
A separate analysis published by Nairametrics Research on November 11, 2026, provides additional insight into the factors supporting the banks’ profitability.
According to the analysis, combined profit before tax across the eight banking groups increased by 14.2 per cent to ₦5.29 trillion from ₦4.63 trillion in the corresponding period of 2025.
The research identified a substantial reduction in credit impairment charges as a major factor supporting earnings.
Net impairment charges declined by 48.1 per cent to ₦977 billion from approximately ₦1.88 trillion, representing a reduction of about ₦906 billion.
Credit impairment charges are amounts banks recognise to account for expected losses when borrowers may be unable to repay their loans.
When these provisions decline, they can improve reported profitability, provided other financial conditions remain unchanged.
Zenith Bank recorded the largest reduction in impairment charges, with provisions falling by approximately ₦552 billion.
Access Holdings also recorded a significant reduction of ₦257.08 billion, representing a 73.5 per cent decline to ₦92.91 billion.
Together, the two institutions accounted for approximately ₦809 billion of the ₦906 billion reduction in impairment charges across the eight banking groups.
The development suggests that lower expected credit losses played an important role in supporting the sector’s financial results.
However, lower provisions should not automatically be interpreted as evidence that all underlying lending risks have disappeared. Banks must continue monitoring borrowers’ repayment capacity and the quality of their loan portfolios. Nairametrics
Rising funding costs create pressure on earnings
Despite the improvement in overall profitability, Nigerian banks continued to face pressure from higher funding costs and operating expenses.
Nairametrics reported that combined interest income among the eight banking groups increased marginally by 0.7 per cent to ₦12.83 trillion from ₦12.73 trillion.
However, interest expenses rose by a faster 5.1 per cent to ₦4.95 trillion from ₦4.71 trillion.
Consequently, combined net interest income declined by 1.8 per cent to ₦7.88 trillion from ₦8.02 trillion.
Net interest income represents the difference between the interest banks earn from loans and investments and the interest they pay on deposits and other funding sources.
The decline is significant because interest income remains one of the principal sources of revenue for traditional banking operations.
The analysis also showed that operating expenses increased by 6.4 per cent to ₦5.39 trillion, while non-interest income rose by 6.2 per cent to ₦3.77 trillion.
These figures highlight the challenge facing Nigerian lenders: maintaining profitability while funding costs and operational expenses continue to rise.
For banks, controlling expenses and improving revenue from digital transactions, fees and other financial services will remain important to sustaining earnings growth. Nairametrics
Different banks rely on different sources of growth
The individual financial results also reveal differences in how the institutions generated their earnings.
First HoldCo recorded strong profit growth despite a decline in net interest income. Nairametrics attributed part of its performance to increased trading and fair-value income, alongside higher fees and other operating revenue.
Stanbic IBTC Holdings also benefited from stronger trading revenue and increased net fee and commission income.
Wema Bank and Sterling Financial Holdings recorded improvements in net interest income, supporting their respective profit growth.
These differences demonstrate that Nigerian banks are increasingly relying on a combination of traditional lending, transaction services, investment activities and other non-interest revenue sources.
The diversification of income streams can help financial institutions manage pressure in individual areas of their businesses.
However, trading and fair-value income can fluctuate with market conditions, making it important for banks to maintain sustainable revenue from their core operations. Nairametrics
What the performance means for Nigeria’s economy
The growth recorded by the eight banking groups comes at a significant time for Nigeria’s financial sector, which has been adjusting to changing monetary conditions, regulatory requirements and increased demand for financial services.
A stronger banking sector can improve the availability of financing for businesses, support payment systems, facilitate investment and contribute to economic activities.
The increase in customer deposits and loan portfolios also demonstrates the importance of commercial banks in mobilising savings and directing funds towards households and businesses.
For small and medium-sized enterprises, access to affordable credit remains particularly important because financing can support business expansion, employment creation and investment in productive activities.
However, the increase in aggregate bank profits does not necessarily mean that borrowing has become cheaper or that access to credit has improved for every category of customer.
Interest rates, collateral requirements, credit assessments and banks’ risk-management policies continue to influence the ability of businesses and individuals to obtain loans.
The banking sector’s next challenge will therefore be ensuring that financial growth translates into improved access to credit and stronger support for Nigeria’s productive economy.
What happens next?
Investors, regulators, customers and other stakeholders will be watching how Nigerian banks perform in the final quarter of 2026.
The sustainability of earnings growth will depend on several factors, including interest rate movements, credit quality, deposit mobilisation, operating expenses and the ability of banks to generate revenue beyond traditional lending.
The banks will also need to maintain adequate capital positions and comply with regulatory requirements while expanding their operations.
Their full-year financial results should provide a clearer picture of whether the profitability recorded during the first nine months can be sustained.
For shareholders, the figures offer insight into the earnings capacity of the institutions, although profitability alone does not determine future share-price performance or dividend payments.
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Sources
- Nairametrics Research – Lower loan-loss charges lift Nigerian banks’ profits as interest earnings shrink, November 11, 2026.
- Legit.ng – Eight Nigerian Banks Earn ₦3.47trn in 9 Months of 2026, November 10, 2026.
- Leadership – Eight Banks’ Profit Rises 12.5% to ₦3.47trn as Loans Hit ₦61.26trn.
