Ecobank, FirstHoldCo, Other Banks Earn N2.22 Trillion From Customer Loans

Five Nigerian banks have collectively earned a massive N2.22 trillion from lending to customers in the first half of 2025, reflecting a sharp 40% jump compared to N1.58 trillion in the same period of 2024.

The banks, Ecobank Transnational Incorporated, FirstHoldCo Plc, Wema Bank Plc, FCMB Group Plc, and Sterling Financial Holdings Plc recorded impressive growth in their loan books, benefiting from Nigeria’s elevated interest rate environment.

Surge in interest income

The group’s total interest income hit N3.79 trillion in H1 2025, up from N2.72 trillion a year earlier. This growth came as the Central Bank of Nigeria (CBN) kept its Monetary Policy Rate (MPR) at 27.5%, a move aimed at curbing inflation and stabilising the naira.

Among the five banks, FirstHoldCo emerged as the biggest gainer, with its loan interest income rising 60% to N910.32 billion from N568.9 billion in H1 2024. 

Ecobank followed closely, posting N750.59 billion, up 17% from N641.08 billion in the same period last year.

FCMB Group also saw strong performance, with loan-related earnings jumping 55% to N299.15 billion. Wema Bank recorded N141.01 billion, a 49.6% rise from the N94.25 billion it made in H1 2024. Sterling Financial Holdings rounded out the list, reporting N115.42 billion, nearly 36% higher than the previous year’s N84.9 billion.

The cost of borrowing

While income from loans has risen, so have costs. The combined interest expenses of the five banks climbed 22.8%, reaching N1.48 trillion in the first half of 2025 compared to N1.21 trillion in 2024.

Analysts say this reflects the broader African trend of higher borrowing costs as central banks across the continent keep rates above 20% in a bid to manage inflation and defend local currencies. 

While these policies boost bank earnings, they also make it harder for businesses and households to access credit, often slowing down economic growth.

What it is on a global scale

Globally, lending rates average below 10%, but African economies especially Nigeria, Angola, Ghana, and Zimbabwe continue to grapple with weak currencies, high import costs, and inflationary pressure. 

In Nigeria, even strong oil revenues have not eased the cost of borrowing, leaving both consumers and businesses under strain.

With loan growth driving strong earnings, Nigerian banks are entering the second half of 2025 in a stronger financial position. However, the trade-off between profitability and economic activity remains a pressing concern. 

For now, elevated interest rates mean more income for lenders, but a tougher borrowing environment for those on the other side of the counter.