Amid Economic Headwinds, Access, GTBank, UBA, Four Other Banks Deliver N1.6tn Profit in Q1 2026

Nigeria’s leading deposit money banks opened the 2026 financial year on a resilient note, posting a combined profit before tax (PBT) of N1.6 trillion in the first quarter, despite mounting domestic pressures and growing global economic uncertainty.

An analysis of the unaudited first-quarter results of seven major lenders by THISDAY showed that the banks sustained their earnings momentum, underlining the enduring profitability of the nation’s banking industry even in a challenging operating environment.

The banks reviewed—Ecobank Transnational Incorporated, Access Holdings Plc, Guaranty Trust Holding Company Plc, United Bank for Africa Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, and Zenith Bank Plc—grew aggregate profit before tax by 6.77 per cent from N1.5 trillion recorded in the corresponding period of 2025.

Their combined profit after tax rose to N1.27 trillion, representing a 1.8 per cent increase from N1.25 trillion posted in the first quarter of last year.

The robust performance came amid persistent inflationary pressures, exchange rate volatility, heightened cybersecurity concerns, intensifying fintech competition, and a generally uncertain global macroeconomic climate.

Industry analysts said the banks’ earnings were largely buoyed by elevated yields on government securities, strong interest income from loans and advances, foreign exchange-related gains, and improved non-funded income streams.

Expectedly, Zenith Bank Plc retained its position as the country’s most profitable lender in the period, posting a profit before tax of N360.92 billion, up 2.88 per cent from N350.82 billion in the corresponding quarter of 2025.

The bank’s profit after tax climbed to N314.02 billion, reflecting steady earnings growth despite pressure from rising impairment charges and operating costs.

Closely behind was Guaranty Trust Holding Company Plc, which delivered N302.89 billion in profit before tax, marginally higher than the N300.3 billion recorded a year earlier.

Commenting on the result, Group Chief Executive Officer of GTCO, Segun Agbaje, said the group’s latest performance reflected a strategic shift in the composition and quality of its earnings.

According to him, the institution was increasingly benefiting from stronger contributions from its ecosystem businesses while maintaining solid momentum across core banking operations.

“Our focus remains on driving sustainable earnings by deepening customer relationships, scaling our ecosystem businesses, and deploying technology to deliver simpler, faster, and more intuitive financial solutions,” he said.

Access Holdings Plc reported one of the quarter’s most impressive earnings expansions, with profit before tax rising 22.2 per cent to N272.21 billion from N222.78 billion in the corresponding period of 2025.

Similarly, Ecobank Transnational Incorporated posted N270.24 billion in profit before tax, representing a 1.1 per cent increase over N267.3 billion declared in the same period last year.

Stanbic IBTC Holdings Plc delivered one of the strongest growth performances among the tier-one and tier-two lenders, recording a 42 per cent jump in profit before tax to N165.4 billion from N116.42 billion.

By contrast, United Bank for Africa Plc recorded a decline in earnings, with profit before tax falling to N160.7 billion from N204.3 billion in Q1 2025.

For Wema Bank Plc, the quarter marked another period of accelerated earnings growth, as the lender posted N72.6 billion in profit before tax—an increase of 41.2 per cent from N41.2 billion in the corresponding quarter last year.

Market analysts said the results once again highlighted Nigerian banks’ ability to navigate turbulence and preserve profitability even under difficult macroeconomic conditions.

Investment banker and stockbroker, Tajudeen Olayinka, said the resilience shown by the lenders reinforced their strategic importance to Nigeria’s economy and the broader African financial system.

He noted that a substantial portion of recent banking profits has been driven by elevated returns on government securities and revaluation gains on foreign-currency positions.

According to him, many of the top-tier banks have deliberately structured their balance sheets to maintain net long dollar positions, enabling them to benefit from exchange rate adjustments.

“Most tier-one banks currently maintain net long US dollar positions, meaning their foreign currency assets exceed their liabilities. As a result, any currency revaluation tends to support profitability,” he said.

Beyond the strong earnings numbers, analysts believe the lenders’ performance reflects the extent to which Nigeria’s banking sector has evolved into one of the most profitable and structurally resilient segments of the economy.

Still, they caution that sustaining such momentum may become more difficult in the months ahead as inflation remains elevated, regulatory compliance costs rise, and competitive pressure from fintech operators continues to reshape the financial services landscape.

For now, however, the first-quarter scorecard suggests that Nigeria’s biggest banks remain firmly profitable—and are entering the rest of 2026 from a position of considerable financial strength.