Five lenders post N2.29tn profit in six months

Five financial institutions recorded a combined profit before tax (PBT) of approximately N2.29 trillion in the first half of 2026, with the lenders posting varying levels of profitability growth, supported by stronger interest income, trading gains, improved asset quality and expanding non-interest revenue.

The five institutions surveyed by Daily Trust are FirstHoldCo Plc, Zenith Bank Plc, Guaranty Trust Holding Company Plc (GTCO), Stanbic IBTC Holdings Plc and Sterling Financial Holdings Company Limited—reported a combined profit before tax of N2.291 trillion for the six months ended June 30, 2026.

Daily Trust reports that some of the tier one lenders including the United Bank for Africa PLC and Fidelity Bank recently got regulatory nod to extend the release of half year results.

FirstHoldCo led the group with N653.5 billion, followed by Zenith Bank with N637.6 billion, GTCO with N603.03 billion, Stanbic IBTC with N341.57 billion and Sterling Financial with N55.5 billion.

FirstHoldCo emerged as the most profitable of the five institutions reviewed, reporting an 83.5 per cent year-on-year increase in profit before tax to N653.5 billion.

The Group also recorded gross earnings of N1.93 trillion, representing a 16.7 per cent increase from the corresponding period of 2025, while operating income rose by 25.8 per cent to N1.38 trillion.

Non-interest income increased to N497.1 billion, supported by electronic banking, trade services, brokerage, funds transfer and other activities. The Group also reported a net interest margin of 9.5 per cent.

Operational efficiency improved, with the cost-to-income ratio declining to 44.2 per cent from 50.5 per cent a year earlier. Impairment charges fell by 37.4 per cent, while recoveries from legacy exposures amounted to approximately N91.9 billion.

The Group also reported the restoration of FirstBank’s capital adequacy ratio to 16.7 per cent, ahead of its planned timeline, strengthening its capacity to support future lending and business expansion.

Zenith Bank

Zenith Bank recorded the second-highest profit before tax rising by 1.91 per cent to N637.6 billion from N625.63 billion in the previous year.

The bank’s performance was supported by lower funding costs, improved net interest margins, stronger transaction-related income and a substantial reduction in impairment charges.

Interest expense declined by 13 per cent to N421.8 billion, helping net interest margin improve to 12.4 per cent from 11.9 per cent. Net interest income stood at N1.25 trillion.

Net fee and commission income increased by 39.6 per cent to N178.77 billion, while other operating income rose by 314 per cent. Meanwhile, impairment charges declined by 81 per cent to N141.1 billion, bringing the cost of risk down to 2.2 per cent from 14.3 per cent.

The bank’s gross loans increased by 14 per cent to N12.57 trillion from N11.06 trillion at the end of December 2025. Customer deposits rose by eight per cent to N26.35 trillion, while total assets expanded by four per cent to N32.65 trillion.

GTCO

GTCO posted a profit before tax of N603.03 billion, representing a modest 0.4 per cent increase from the corresponding period of 2025.

The holding company’s earnings were supported by growth in interest and trading income, which increased by 7.5 per cent and 24.7 per cent year-on-year, respectively.

However, a N46.2 billion fair-value loss moderated the growth in reported profitability, highlighting the effect of market-related valuation movements on the Group’s earnings.

GTCO’s total assets closed at N18.6 trillion, while shareholders’ funds stood at N3.3 trillion. Customer deposits increased by 10.3 per cent to N14.19 trillion from N12.87 trillion at the end of December 2025.

Its net loan book grew marginally by 0.5 per cent to N3.15 trillion from N3.13 trillion.

The Group also reported a capital adequacy ratio of 34.9 per cent, while its cost of risk improved to 0.6 per cent from 2.2 per cent. Its cost-to-income ratio stood at 31.5 per cent, reflecting continued operational efficiency.

GTCO’s performance also underscored the contribution of its non-banking businesses, including payments, pensions and funds management, to its broader diversification strategy.

Stanbic IBTC

Stanbic IBTC Holdings recorded a 40.13 per cent increase in profit before tax to N341.57 billion from N243.74 billion in the first half of 2025.

Gross earnings increased by 27.15 per cent to N650.31 billion, while profit after tax rose by 38.2 per cent to N239.68 billion.

The Group’s performance was driven largely by non-interest revenue, which more than doubled to N278.02 billion from N123.08 billion. Trading revenue contributed significantly, rising to N126.36 billion from a loss of N856 million in the corresponding period.

Net fee and commission revenue increased by 27.08 per cent to N145.26 billion, while impairment losses declined by 33.75 per cent to N7.36 billion.

However, the institution faced pressure on its traditional interest income. Interest income fell by 5.4 per cent to N359.10 billion, while interest expense increased by 34.98 per cent to N92.83 billion. Consequently, net interest income declined by 14.34 per cent to N266.28 billion.

Total assets expanded by 26.59 per cent to N10.91 trillion, while customer deposits rose to N4.63 trillion.

The board proposed an interim dividend of N4.50 per share, representing an 80 per cent increase from N2.50 in the first half of 2025.

Sterling

Sterling Financial recorded the lowest absolute profit before tax among the five institutions, but still delivered growth in its key financial indicators.

The Group’s profit before tax increased by 21.9 per cent to N55.5 billion, while profit after tax rose by 20.4 per cent to N50.3 billion.

Gross earnings advanced by 31.5 per cent to N279.6 billion, supported by a 33.7 per cent increase in interest income to N223.6 billion.

Net interest income climbed by 41 per cent to N137.4 billion, while non-interest income increased by 23.3 per cent to N56 billion.

The holding company’s total assets grew by 19.3 per cent to N4.67 trillion, while customer deposits expanded by 21.1 per cent to N3.62 trillion.

Shareholders’ funds increased by 27.8 per cent to N547.7 billion, partly reflecting N96.6 billion raised through a public offer of 13.8 billion ordinary shares.

Return on average equity stood at 20.6 per cent, while return on average assets improved to 2.35 per cent from 2.05 per cent.

Daily Trust reports that the Central Bank of Nigeria (CBN) has encouraged deposit money banks (DMBs) to increase lending to the real sector amidst surge in earnings.

“Stronger capital buffers should enable banks to finance long-term infrastructure, support industrial expansion, facilitate international trade and compete more effectively in regional and global markets. They also provide greater capacity to absorb losses during economic stress and sustain investment in innovation and digital transformation,” a deputy governor of the apex bank, Dr. Muhammad Sani Abdullahi had said at an event recently.