Zenith Bank Plc and nine other Deposit Money Banks (DMBs) commenced 2025 on a positive momentum, generating an estimated N1.83 trillion profit before tax in the first quarter (Q1) of the year, according to an analysis of the Q1 2025 unaudited financial statements of the nine DMBs.
A review of the unaudited financial statements of Zenith Bank, Ecobank Transnational Incorporated (ETI), First Holdings Plc, Access Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), United Bank for Africa Plc (UBA), Wema Bank Plc, Fidelity Bank Plc, FCMB and Stanbic IBTC Holdings Plc during the period under review showed that the profit before tax grew by 3.5 per cent when compared to N1.77 trillion reported in Q1 2024.
Profit after tax closed Q1 2025 at N1.54 trillion, representing an increase of 4.1 per cent from N1.48 trillion in Q1 2024.
THISDAY learnt that these 10 DMBs leveraged on interest income earned from investing in high-yield government securities, interest income from loans and advances to customers, and foreign currency trading, among others to drive profit.
In Q1 2025, these DMBs were faced with a range of challenges stemming from both internal economic factors and global financial trends.
Notable challenges include: Currency volatility and foreign exchange shortages, double-digit inflation and steady interest rate by the CBN; digital transformation and cybersecurity threats, and competition from Fintech and Mobile Money Operators (MMO).
During the period under review, Zenith Bank maintained its position as the most profitable DMB operating within Nigeria, Sub-Saharan African countries, and across the globe.
GTCO and First Holdco were the only DMBs with a decline in PBT, while Wema Bank saw its PBT increase significantly.
Zenith Bank recorded N350.82 billion in Q1 2025, about a 10 per cent increase over the N320.19 billion recorded in Q1 2024, while profit after tax stood at N311.8 billion in Q1 2025, an increase of 20.7 per cent from N 258.3billion reported in Q1 2024.
Zenith Bank in the 2024 financial year (FY) had emerged as the most profitable financial institution in Nigeria, followed by GTCO.
Zenith Bank in 2024FY declared N1.33 trillion profit before tax, up by 66.7per cent from N795.96 billion in 2023, while GTCO posted N1.27 trillion profit before tax, representing an increase of 108 per cent from N609.31 billion declared in 2023.
But GTCO in Q1 2025 declared a profit before tax of N300.4 billion, about a 41 per cent decline from N509.4 billion in Q1 2024.
The N300.4 billion growth in GTCO’s profit before tax was on the back of strong performance posted on the core earnings lines of interest income, which grew by 41.1 per cent and fee income, which rose by 41.2 per cent.
While ETI reported N267.3 billion profit before tax in Q1 2025, an increase of 33 per cent from N201.46 billion in Q1 2024, Access Holdings posted N222.78 billion profit before tax, representing an increase of nearly 10 per cent from the N202.74 billion posted in 2024.
On its part, UBA announced N204.3 billion profit before tax in Q1 2025, up by 31 per cent from N156.3 billion in Q1 2024, just as First Holdco posted N186.5billion profit before tax in Q1 2025, a decline of 20.4 per cent from N234.2billion reported in Q1 2024.
UBA’s Group Managing Director, Mr. Oliver Alawuba, in a statement, said the bank was on a solid start for the 2025 financial year, which, according to him, reflected the disciplined execution of its strategy and the sustained momentum of the business model of driving strong earnings growth, maintaining robust asset quality, and expanding market share.
He said: “Our results this quarter underscore the effectiveness of our focus on core banking operations, prudent risk management, and ongoing investments in customer-centric innovation.”
Other DMBs: Stanbic IBTC Holdings announced N116.42 billion profit before tax in Q1 2025, an increase of 86 per cent from N62.7 billion in Q1 2024; Fidelity Bank declared N105.77 billion profit before tax in Q1 2025, representing 168 per cent growth from the N39.5billion in Q1 2024; Wema Bank reported N41.2 billion profit before tax in Q1 2025, a growth of 269 per cent from N11.15 billion in Q1 2024 and FCMB Group posted N35.02 billion profit before tax in Q1 2025, about 12 per cent increase when compared to the N31.3 billion declared in Q1 2024.
The MD/CEO of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe commenting on the Q1 2025 results, stated that: “We started the year with triple-digit growth in profit and sustained the momentum in our earning assets growth.
“This performance shows the resilience of our business model and reinforces our confidence in delivering a better result in the 2025 financial year.”
Investment Banker & Stockbroker, Mr. Tajudeen Olayinka said DMBs operating in the country were resilient and also playing a critical role in the economic drive.
He disclosed that a significant portion of these DMBs’ recent profit gains came from high -yield on government securities, and revaluation gains on their net long US dollar income positions.
He stated that most DMBs had structured their balance sheets to maintain net long US dollar positions, which means that they can record gains whenever the currency is adjusted.