UBA, Access, others reap big abroad as foreign profits hit N1.7tn

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, accounting for 33.5 percent of their combined total group profit of N5.060 trillion.

The sharp growth in offshore earnings highlights the increasing importance of cross-border operations in the performance of Nigeria’s top banks, though domestic operations remain the cornerstone of profitability, contributing the majority of group earnings.

Macroeconomic factors, such as rising interest rates and naira devaluation, significantly boosted interest income and foreign exchange revenue. These conditions, driven by policy decisions, led to an 82 percent increase in gross earnings among the five banks, from N9.55 trillion in 2023 to N17.397 trillion in 2024. This top-line growth translated 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 N187 billion in pre-tax profit, about 14 percent of the group’s total pre-tax profit of N1.327 trillion. Zenith Bank UK was the most profitable offshore unit, with N84.1 billion, followed closely by Ghana with N82 billion. Nigerian operations, however, accounted for over 84 percent of the bank’s 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. While no country-specific breakdown was provided, First Holdco’s footprint spans six African nations, the United Kingdom, and representative offices in China and France, reflecting its global ambitions.

GTCO saw a dramatic 109 percent increase in foreign profits, with its subsidiaries earning N273.14 billion in 2024, up 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, and all offshore operations except Tanzania were profitable. GTCO’s non-banking verticals—payments, asset management, and pensions—also grew, contributing N14.59 billion, up from N5.96 billion in 2023. GTCO Nigeria remained dominant, contributing over 79 percent of group profit.

Access Holdings led in percentage growth, with foreign subsidiaries generating N459.99 billion in pre-tax profit, a 131 percent increase from 2023. These offshore operations accounted for 53 percent of the group’s adjusted profit of N867.02 billion. The United Kingdom subsidiary delivered N259.1 billion, though losses were recorded in South Africa, Mozambique, and Kenya. Foreign units contributed N1.1 trillion to the group’s gross earnings of N4.878 trillion, underscoring their critical role.

UBA outperformed all others in foreign profitability, with subsidiaries in 20 African countries and the United Kingdom generating N556.36 billion in pre-tax profit, accounting for 69.22 percent of the group’s adjusted profit of N803.73 billion, up from 29.69 percent in 2023. For the first time, foreign operations surpassed UBA Nigeria, which contributed N486.53 billion. Cameroon and Côte d’Ivoire were top performers, while Kenya and Tanzania recorded minor losses. Offshore operating revenue more than doubled to N1.577 trillion, and impairment losses fell to N53 billion, with Ghana bearing N24 billion.

The strong performance of these foreign subsidiaries underscores the success of Nigerian banks’ regional and international expansion strategies, serving as both income engines and hedges against Nigeria’s volatile economy. Sustaining this growth will require deeper market penetration abroad, robust risk management, and navigation of diverse regulatory environments.