Nigerian banks made N1.95trn from foreign ops in 2025 while domestic profits fell
Four FUGAZ banks (UBA, Access, GTCO, Zenith) earned N1.949 trillion from foreign subsidiaries in 2025, representing 54.77% of their N3.56 trillion combined group profit. Despite this foreign earnings boom, overall group pre-tax profit declined by 11% due to massive domestic impairments and high operating expenses. UBA Nigeria accounted for over 90% of the N331 billion total group impairment, while Zenith Bank Nigeria contributed over 97% of the N742 billion group impairment.
Individually, UBA led with N671.1 billion foreign profit (92% of its group profit), followed by Access Holdings at N571.305 billion (56.73%), GTCO at N375.322 billion (43.35%), and Zenith Bank at N331.758 billion (26.26%). First HoldCo did not disclose 2025 foreign earnings. The structural shift is clear: Access Holdings now earns more than half its profit overseas, up from 27.32% in 2023. Domestic operations struggle while foreign subsidiaries in Ghana, UK, Côte d'Ivoire and other markets thrive.
This offshore profit dependence creates vulnerability to international economic shifts and regulatory changes. The CBN's proposed HoldCo guidelines could increase foreign subsidiary costs by treating them as standalone entities, potentially eroding the current cost advantage from shared infrastructure. For Nigerian customers, this raises questions about where banks' priorities lie and whether domestic service quality might suffer as resources flow overseas.
Should you consider a bank's domestic vs foreign profit mix when choosing where to keep your money, given that strong overseas earnings coexist with struggling local operations and potential regulatory headwinds?