Despite an increasingly challenging economic climate, Nigeria’s five leading banks, First Holdco Plc, United Bank for Africa (UBA) Plc, Guaranty Trust Holding Company (GTCO) Plc, Access Holdings Plc, and Zenith Bank Plc, collectively known as the FUGAZ group—have delivered a combined after-tax profit of N4.1 trillion in 2024. This marks a 46.4 per cent leap from the N2.8 trillion recorded in 2023.
The record profits came on the back of N17.4 trillion in combined gross earnings, up 81.4 per cent from N9.6 trillion the previous year. Total assets across the five banks also surged to N143 trillion, compared to N94.34 trillion in 2023, reaffirming their dominance in the sector.
Access Holdings retained its industry lead by asset size and revenue, growing its balance sheet by 55.5 per cent to N41.5 trillion and its gross earnings by 88 per cent to N4.88 trillion. However, it posted the weakest profit growth among the group, with after-tax profit rising just 3.7 per cent to N642.2 billion. Rising interest expenses, which consumed 63.6 per cent of interest income, and a 108.5 per cent surge in operating costs eroded margins. Its net profit margin fell sharply from 23.6 per cent in 2023 to 12.7 per cent in 2024.
UBA followed with assets of N30.32 trillion and a 53.6 per cent increase in gross earnings to N3.19 trillion. After-tax profit grew by 26 per cent to N766.6 billion. Despite strong interest income growth of 120.4 per cent, UBA’s non-interest revenue fell 34 per cent, and operating expenses surged by 69.2 per cent to N1.06 trillion. Consequently, its net profit margin slipped to 23.3 per cent from 28.8 per cent in 2023.
Zenith Bank’s asset base rose 47 per cent to nearly N30 trillion, and its gross earnings climbed 86.3 per cent to N3.97 trillion. It posted an after-tax profit of N1.03 trillion, up 52.6 per cent. The bank recorded strong asset utilization and maintained the lowest operating cost margin (21.2 per cent) among the group. However, higher tax expenses trimmed its profit margin from 31.7 per cent in 2023 to 26 per cent in 2024.
First Holdco saw the strongest revenue growth, with gross earnings surging 101.4 per cent to N3.21 trillion from a 56.6 per cent asset growth to N26.52 trillion. Its after-tax profit rose by 113.7 per cent to N663.5 billion. The bank maintained tight cost controls, limiting operating expense growth to 65.5 per cent and keeping interest expenses in check. Its net profit margin improved to 20.9 per cent, up from 19.3 per cent in 2023.
