Nigerian Banks Generate N1.695tn from Foreign Subsidiaries in 2024

In 2024, five of Nigeria’s leading banks reported a combined pre-tax profit of N1.695 trillion from their foreign subsidiaries, representing 33.5 percent of their total group pre-tax profit of N5.060 trillion.

The banks—Zenith Bank, First Bank (via FBN Holdings), GTCO, UBA, and Access Holdings—benefited from favourable macroeconomic conditions including high interest rates and a weaker naira, which boosted foreign exchange income and returns from loans, treasury bills, and bonds.

Despite strong contributions from overseas operations, the banks still derived the majority of their profits from the domestic market. However, earnings from international subsidiaries are becoming increasingly significant. In 2024, the combined gross earnings of the five banking groups rose by 82 percent to N17.397 trillion, up from N9.55 trillion recorded in the previous year. This surge was driven by a jump in interest income and a rise in earnings from foreign markets.

Zenith Bank reported N187 billion in profit from its foreign operations, including its subsidiaries in Ghana, Sierra Leone, the Gambia, and the United Kingdom. The UK and Ghanaian branches were key contributors, accounting for N84.1 billion and N82 billion respectively. FBN Holdings posted N219 billion in profit from its international subsidiaries, accounting for 27.5 percent of its total pre-tax income of N796.47 billion. GTCO Plc recorded N273 billion from its foreign operations, including entities in Ghana, Kenya, and the UK, representing 21.6 percent of its total pre-tax profit and marking a 109 percent increase over the previous year.

Access Holdings generated N459.99 billion from its 15 foreign subsidiaries, which made up 53 percent of its total N867.02 billion pre-tax profit for the year. The group’s UK subsidiary was the highest contributor, posting N259.1 billion in profit before tax. United Bank for Africa (UBA) Plc led the group in foreign contributions, with N556.36 billion from its international operations. This figure represents 69.2 percent of its total pre-tax profit of N803.73 billion and surpasses the income from its Nigerian operations.

The results underscore the growing importance of international expansion for Nigerian banks as they seek to diversify revenue streams and mitigate risks associated with the local economy. Analysts, however, caution that while international operations present growth opportunities, they also come with regulatory and operational challenges that require robust governance and strategic oversight.