From Adanna Nnamani, Abuja
Foreign subsidiaries of Nigeria’s five biggest banking groups, including Zenith Bank, First Holdco, GTCO, Access Holdings, and UBA, delivered a record-breaking N1.695 trillion in pre-tax profit in 2024.
This accounted for 33.5 percent of their combined total group profit of N5.060 trillion.
The sharp growth in offshore earnings shows the increasing relevance of cross-border operations in the performance of Nigeria’s top banks. Yet, domestic operations remain the cornerstone of profitability, continuing to account for the lion’s share of group earnings across the board.
Macroeconomic tailwinds such as rising interest rates and the devaluation of the naira provided a significant boost, helping to drive robust gains in interest income and foreign exchange revenue. These conditions, largely influenced by policy decisions, led to a remarkable 82 percent increase in gross earnings among the five banks, from N9.55 trillion in 2023 to N17.397 trillion in 2024. That top-line growth trickled down, translating into a 56 percent jump in group-level pre-tax profit compared to the previous year.
Zenith Bank’s four foreign subsidiaries in Ghana, Sierra Leone, Gambia, and the United Kingdom contributed a combined N187 billion in pre-tax profit, about 14 percent of the group’s total pre-tax profit of N1.327 trillion.
Zenith Bank UK emerged as the most profitable offshore unit, with N84.1 billion, followed closely by Ghana with N82 billion. Despite this, the bank’s Nigerian operations remained dominant, accounting for over 84 percent of its total profit.
First Holdco, the parent company of First Bank of Nigeria, generated N219.03 billion in pre-tax profit from its international subsidiaries, representing 27.5 percent of its total profit of N796.47 billion. Though the group did not disclose a breakdown by country, its footprint spans six African nations and the United Kingdom, along with representative offices in China and France evidence of a growing global ambition.
GTCO posted a dramatic increase in foreign profits as well. Its subsidiaries earned N273.14 billion in 2024, up 109 percent from N130.66 billion in 2023.
These foreign units contributed 21.57 percent to the group’s total pre-tax profit of N1.266 trillion. Ghana was the top-performing subsidiary with N118.96 billion in profit, while all offshore operations except Tanzania were profitable. The group’s non-banking verticals—including payments, asset management, and pensions—also saw notable growth, bringing in N14.59 billion, up from N5.96 billion in 2023. Still, GTCO Nigeria contributed more than 79 percent of group profit, highlighting its continued centrality.
Access Holdings emerged as the biggest winner in percentage terms, with foreign subsidiaries generating a staggering N459.99 billion in pre-tax profit, up 131 percent compared to 2023. These offshore operations accounted for 53 percent of the group’s adjusted profit of N867.02 billion. The United Kingdom subsidiary alone delivered N259.1 billion. However, Access also faced headwinds, with losses from operations in South Africa, Mozambique, and Kenya. Foreign units also contributed N1.1 trillion to the group’s gross earnings of N4.878 trillion, reinforcing the importance of its international footprint.
UBA outpaced all others in foreign profitability, with subsidiaries in 20 African countries and the United Kingdom raking in N556.36 billion in pre-tax profit. That accounted for 69.22 percent of the group’s adjusted profit of N803.73 billion, a major leap from the 29.69 percent contribution in 2023. For the first time, foreign operations outperformed UBA Nigeria, which delivered N486.53 billion in profit. Cameroon and Côte d’Ivoire were the top contributors among the subsidiaries, while Kenya and Tanzania posted minor losses. Meanwhile, operating revenue from offshore units more than doubled to N1.577 trillion, while impairment losses dropped sharply to N53 billion, with Ghana bearing the brunt at N24 billion.
The stellar performance of these foreign subsidiaries signals the long-term payoff of Nigerian banks’ aggressive regional and international expansion strategies.
They now serve not only as income engines but also as risk hedges against Nigeria’s volatile economic environment.
As these banks continue to push their boundaries, the key to sustaining growth will lie in deepening market penetration abroad while maintaining rigorous risk management and navigating diverse regulatory terrains.