In 2024, nine Nigerian banks collectively earned N14.26 trillion in interest income, according to an analysis of their audited financial results.
In contrast, the manufacturing sector, often referred to as the real sector, is facing rising operational costs, which totaled N2.5 trillion in 2024 alone.
The analysis, which examined the financial results of First Holdco, Guaranty Trust Holding Company, Zenith Bank Plc, United Bank for Africa, FCMB Group, Fidelity Bank, Stanbic IBTC Holdings, Access Holdings, and Wema Bank as reported to the Nigerian Exchange Limited (NGX), revealed that interest revenue for these banks surged by 119.55 percent, increasing from N6.49 trillion in 2023 to N14.26 trillion in 2024.
A detailed analysis of the results from nine banks revealed that Access Holdings experienced a remarkable 98.69 percent increase in interest income, rising to N3.11 trillion from N1.56 trillion the previous year.
Zenith Bank’s interest income surged by 137.74 percent, reaching N2.72 trillion. First HoldCo, the parent company of FirstBank, reported a 155 percent increase in interest income, totaling N2.39 trillion.
Other banks also saw significant growth in interest income, with United Bank for Africa reporting N2.37 trillion (up 120 percent), Guaranty Trust Holding Company at N1.32 trillion (up 148 percent), and Stanbic IBTC Holdings at N566 billion (up 109 percent).
In addition, First Monument Bank, Fidelity Bank, and Wema Bank, along with other non-Fugaz banks, generated substantial profits from interest charges.
FCMB Group’s interest income rose by 75.16 percent to N621.81 billion, while Fidelity Bank’s increased by 85.03 percent to N803.05 billion. Wema Bank also saw a significant rise, with interest income climbing 91.03 percent to N354.63 billion, up from N185.64 billion.
The financial institution that generated the highest percentage of interest income was First HoldCo, followed by GTCO and Zenith Bank Plc.
