Nigerian banks turned in a remarkable performance in 2024, fueled by a mix of high interest rates, foreign exchange revaluation gains, and aggressive expansion strategies. 

All across the board, most commercial banks posted stronger earnings and healthier balance sheets, leveraging a high-interest environment to push returns while strategically allocating capital.

The Central Bank of Nigeria (CBN) raised the Monetary Policy Rate (MPR) by a staggering 800 basis points to 27.5%, significantly lifting yields on fixed-income instruments and raising the cost of capital. 

Banks seized this opportunity, redirecting more funds into customer loans and high-yielding placements. By year-end, interest income had surged by an impressive 122% year-on-year to N15.1 trillion.

What are the numbers behind the performance

A closer look at ten major publicly listed banks shows a sector on the rise. Customer loans rose by nearly 38% to N51.4 trillion, while total post-tax profit jumped 53.5% to N4.8 trillion. 

In the same period, Return on Average Equity (ROAE) improved slightly from 30.9% to 31.3%, while combined asset value soared to N17.9 trillion, a 50.5% increase.

The sector’s influence on the broader economy was also clear. According to the National Bureau of Statistics, banking contributed over N13.7 trillion in nominal value to GDP and accounted for roughly 42% of Nigeria’s total real GDP growth in 2024.

But while profitability remained strong, analysts and regulators emphasized the importance of stability indicators like capital adequacy and asset quality. Non-performing loans edged up to 4.5%, a signal of credit quality risks amid rapid expansion.

Ranking Nigeria’s Best-Performing Banks in 2024

The top performers weren’t just those with the biggest profits, but those that demonstrated all-round improvements in key areas such as capital strength, cost control, loan growth, and returns.

Wema Bank

Wema Bank surprised many by emerging as the top performer in 2024. The bank posted a 140% increase in profit after tax to N86.28 billion and grew its total assets by a massive 60% to N3.59 trillion. Notably, it improved operational efficiency, cutting its cost-to-income ratio from 64.4% to 56.2%.

Wema also managed to reduce its non-performing loan (NPL) ratio to 3.9% from 4.3%, even while expanding its loan book. ROAE soared to 43.6%, making it one of the most efficient users of shareholders’ funds.

Fidelity Bank

Fidelity Bank had a breakout year, ranking second overall thanks to record-breaking earnings and improved capital health. Profit rose by 179.6% to N278.1 billion—the highest growth among its peers—while ROAE jumped to 41.7%.

Deposits also surged 47.9% to N5.9 trillion. Fidelity’s NPL ratio dropped to 3.1%, reflecting stronger credit risk management, and its capital adequacy ratio improved to 23.5%.

FBN Holdings

First Bank’s parent company, FBN Holdings, ranked third, driven by strong deposit growth and solid profits. The group led the pack in deposit mobilization, with a 61% jump to N17.2 trillion.

PAT rose 115% to N663.5 billion, while assets climbed 57% to N26.5 trillion. This performance marks a significant turnaround for the institution, which has been regaining investor confidence in recent years.

Zenith Bank

Zenith Bank held the fourth spot, largely on the back of its robust lending operations. Customer loans expanded by 52% to N9.97 trillion, while profits climbed 52.6%.

Zenith’s capital adequacy ratio also improved, moving from 21.7% to 25.6%, ensuring it remains well-buffered against risk.

GTCO

Guaranty Trust Holding Company (GTCO) closed out the top five. Its post-tax profit jumped 88.6% to over N1 trillion, the highest among the listed banks.

GTCO also posted a remarkable improvement in capital adequacy, moving from 21.9% to a strong 39.3%. However, its NPL ratio increased slightly to 5.2%, a sign of strain from aggressive credit expansion.

What this means for Nigeria beyond the rankings

The performance of the banking sector in 2024 reaffirmed its central role in Nigeria’s economic engine. Banks contributed significantly to GDP growth, fueled business activity, and demonstrated greater resilience in a volatile economic environment.

Even with rising interest rates and regulatory pressures, including a recapitalization directive from the CBN aimed at supporting Nigeria’s $1 trillion economy ambition banks managed to maintain upward momentum.

Yet, challenges remain. Non-performing loans ticked up, and competition is heating up from digital challengers and fintechs offering more agile services. Traditional banks are responding by investing more in technology, innovation, and customer experience.