Despite a modest easing of monetary policy by the Central Bank of Nigeria, five major Nigerian banks recorded a combined interest income of N9.88 trillion in 2025, reflecting the continued strength of a high-interest-rate environment in supporting banking sector profitability.
The figure, derived from the audited full-year financial statements of Zenith Bank Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, Ecobank Transnational Incorporated, and Guaranty Trust Holding Company Plc (GTCO), represents a 27.7 per cent increase compared to N7.74 trillion recorded in 2024.
The performance was achieved even after the Central Bank of Nigeria (CBN) reduced the Monetary Policy Rate (MPR) to 27 per cent, a policy move aimed at curbing inflationary pressures and stabilising the exchange rate.
Despite the slight policy adjustment, lending rates and returns on investment securities remained elevated, continuing to drive strong earnings from loans and advances as well as fixed-income instruments.
A breakdown of the results showed that Zenith Bank Plc led the group with N3.67 trillion in interest income, marking a 35 per cent rise from the previous year.
Zenith Bank Plc maintained its position as the highest earner among the five lenders.
Ecobank Transnational Incorporated followed closely with N3.19 trillion.
Ecobank Transnational Incorporated also benefited significantly from regional lending operations across Africa.
Guaranty Trust Holding Company Plc posted N1.65 trillion, representing a 23 per cent year-on-year increase.
Guaranty Trust Holding Company Plc attributed part of its performance to expansion in earning assets, although it noted a decline in non-interest income due to weaker gains from derivatives and fair value adjustments.
Stanbic IBTC Holdings Plc recorded N787.05 billion, reflecting a 39 per cent growth, while Wema Bank Plc posted N576.07 billion, a sharp 62.4 per cent increase over 2024.
Stanbic IBTC Holdings Plc and Wema Bank Plc both benefited from improved portfolio yields and increased lending activity.
Industry data also showed a slight moderation in Nigeria’s lending rates.
The average maximum lending rate eased to 29.32 per cent in December 2025, compared to 29.71 per cent a year earlier.
The rate had peaked at 30.50 per cent in February 2025 when the MPR stood at 27.50 per cent.
Similarly, the prime lending rate for top-tier borrowers declined to 18.02 per cent from 18.56 per cent in 2024, reflecting a gradual but limited easing in credit pricing.
Financial analysts said the strong earnings performance is closely tied to the CBN’s tight monetary stance since 2024, as authorities sought to combat inflation and stabilise the naira amid foreign exchange pressures.
An investment banker, Tajudeen Olayinka, noted that high interest rates have been instrumental in attracting foreign portfolio inflows and supporting external reserves.
He explained that the repricing of financial assets across markets has continued to boost yields on both loans and government securities, strengthening bank earnings.
CBN Governor Olayemi Cardoso has previously acknowledged that inflation remains elevated due to structural challenges, rising energy costs, and persistent demand pressures in the foreign exchange market.
He has, however, expressed optimism that ongoing economic reforms aimed at improving domestic production will gradually ease inflationary trends.
While banks continue to benefit from the prevailing high-yield environment, analysts caution that prolonged elevated interest rates could tighten credit conditions further, potentially slowing economic growth and limiting job creation in the broader economy.
