Nigeria’s top banks, including Access Bank, Zenith Bank, UBA, and others, earned a combined N5.93 trillion from investment securities in 2024, marking a historic surge that underscores a strategic pivot towards safer, high-yield assets in a turbulent economic environment.
The securities income accounted for roughly 40 per cent of the banks’ total interest income of N14.804 trillion — itself a stunning 123 per cent jump from N6.63 trillion recorded in 2023, according to an analysis of published financial statements.
As of December 2024, the combined value of investment securities across these banks stood at N44.649 trillion — a 196.49 per cent rise from N24.257 trillion in 2023.
Meanwhile, total customer deposits hit N126 trillion, about 50 per cent higher year-on-year, reflecting improved liquidity and funding stability.
Overall, the banks delivered stellar profitability, with combined pre-tax profits hitting N5.96 trillion and post-tax profits at N4.799 trillion, both up more than 50 per cent from the previous year.
Access Holdings led the sector, earning N1.64 trillion from securities, representing 47 per cent of its interest income. UBA followed closely, generating N1.203 trillion — a remarkable 50.8 per cent of its interest income.
Zenith Bank reported N1.038 trillion, making up 38.15 per cent of its earnings from interest. First Bank Holdings pulled in N849.66 billion, 35 percent of its interest revenue.
GTCO earned N582.86 billion, 43.4 per cent of total interest income, with a strategy focused heavily on bonds and treasury bills. Fidelity Bank, FCMB, Stanbic IBTC, and Wema Bank all posted significant growth rates in securities earnings, ranging from 97 per cent to over 347 per cent year-on-year increases.
While the pivot to government securities has boosted banks’ earnings and fortified balance sheets, some analysts warn that the strategy carries hidden risks for the broader economy.
“Banks’ heavy tilt toward risk-free assets is understandable given the high-interest environment,” said Dr. Biodun Adedipe, Chief Consultant at B. Adedipe Associates Limited.
“However, this shift could dampen credit expansion to the private sector, especially SMEs and retail borrowers, sectors critical for job creation and inclusive growth.”