Nigeria’s eight leading listed banking groups recorded a combined N906 billion reduction in credit impairment charges in the first nine months of 2026, providing the biggest support for profitability amid declining net interest income and rising operating costs.
An analysis of their nine-month financial statements shows that combined impairment charges fell by 48.1 per cent to N977 billion in September 2026, compared with N1.88 trillion in the corresponding period of 2025.
The reduction exceeded the N659 billion increase in combined profit before tax (PBT), highlighting the extent to which lower provisions for potential loan losses supported banks’ earnings during the period.
Despite the pressure on core banking income, the eight groups recorded a 14.2 per cent increase in combined PBT to N5.29 trillion from N4.63 trillion.
The banks covered in the analysis are Zenith Bank, Ecobank Transnational Incorporated, First HoldCo, Guaranty Trust Holding Company (GTCO), Access Holdings, Stanbic IBTC Holdings, Wema Bank and Sterling Financial Holdings.
Zenith Bank and Access Holdings accounted for approximately N809 billion of the N906 billion reduction in impairment charges.
Zenith recorded the largest decline, with credit impairment charges dropping by about N552 billion. Its PBT, however, increased by just 1.2 per cent to N928.80 billion from N917.41 billion, suggesting that lower credit-loss provisions helped cushion pressure from other areas of its operations.
Access Holdings recorded a N257.08 billion, or 73.5 per cent, reduction in impairment charges to N92.91 billion. Its PBT rose 8.3 per cent to N667.36 billion, while net interest income grew marginally by 2.7 per cent to N1.29 trillion.
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GTCO also benefited from approximately N39.6 billion in lower impairment charges, although its PBT declined 2.3 per cent to N879.90 billion, reflecting the influence of other income and expense pressures.
The improvement in credit costs came against a decline in combined net interest income, which fell 1.8 per cent to N7.88 trillion from N8.02 trillion.
Interest income increased marginally by 0.7 per cent to N12.83 trillion, but interest expenses rose faster by 5.1 per cent to N4.95 trillion, reflecting higher funding costs.
Consequently, net interest income accounted for 67.6 per cent of combined operating income, down from 69.3 per cent a year earlier.
Non-interest income provided some relief, increasing 6.2 per cent to N3.77 trillion, while net fee and commission income rose 13.2 per cent to N2.26 trillion.
However, operating expenses increased 6.4 per cent to N5.39 trillion, limiting the benefits of revenue growth.
The sources of profitability varied across the institutions. First HoldCo recorded a 60.8 per cent increase in PBT to N911.24 billion, supported by approximately N190 billion growth in trading and fair-value income, alongside higher fees and other operating income, despite a 16 per cent decline in net interest income.
Stanbic IBTC’s PBT rose approximately 35 percent to N531.88 billion, supported by an increase in trading revenue to N210.13 billion from N23.86 billion.
Wema Bank recorded a 76.6 per cent increase in PBT to N258.64 billion, supported by 38.3 per cent growth in net interest income to N325.88 billion.
Sterling Financial Holdings also recorded a 37.1 per cent increase in PBT to N97.28 billion, as net interest income rose 43.9 per cent to N205.90 billion.
Management commentary across the banks pointed to lower credit costs, diversified income sources, deposit growth and operational efficiency as important contributors to performance.
Zenith Bank Group Managing Director, Adaora Umeoji, said lower funding and credit costs contributed to profitability and improved earnings quality.
Similarly, Access Holdings Group Chief Executive, Innocent Ike, described the reduction in impairment charges and growth in income after impairment as evidence of a stronger earnings base.
The results indicate that while Nigerian banks maintained profit growth, lower credit-loss provisions played a disproportionately significant role in protecting earnings, raising questions about the sustainability of profitability if impairment charges begin to rise again or funding costs remain elevated.