Eight Nigerian banks reported a 46.9 per cent decline in loan impairment charges to N1.01 trillion in the nine months ended September 2026, compared with N1.91 trillion in the corresponding period of 2025.
Loan impairment charges, often referred to as credit losses, are provisions banks make to cover potential defaults and deterioration in the value of their financial assets.
The substantial decline in impairment charges helped lift the eight banks’ combined profit before tax (PBT) by 12.2 per cent to N4.8 trillion, from N4.3 trillion in the corresponding period of 2025.
The eight banks are Jaiz Bank Plc, Zenith Bank Plc, Ecobank Transnational Incorporated, First HoldCo Plc, Guaranty Trust Holding Company (GTCO) Plc, Access Holdings Plc, Wema Bank Plc and Sterling Financial Holdings Plc.
THISDAY gathered that lower impairment charges at GTCO, Access Holdings, Zenith Bank and First HoldCo supported their combined profitability, although earnings growth sources varied across the groups.
Access Holdings recorded the largest percentage reduction in impairment charges, which fell by 73.5 per cent to N92.91 billion in the nine months ended September 2026, from N349.99 billion in the corresponding period of 2025. Its PBT rose by 8.3 per cent to N667.36 billion.
Zenith Bank recorded the second-largest percentage reduction, with impairment charges declining by 70.5 per cent to N230.77 billion, from N782.76 billion.
Its PBT rose 1.2 per cent to N928.80 billion, from N917.41 billion, suggesting lower credit-loss provisions helped offset weaker income from other activities.
Together, Zenith Bank and Access Holdings accounted for approximately N809 billion of the reported N906 billion reductions in impairment charges across the eight groups.
GTCO also benefited from approximately N39.6 billion in lower impairment charges, although its PBT declined by 2.3 per cent to N879.90 billion.
The results show that lower impairment charges can materially support earnings but do not automatically translate into higher profits when other income sources weaken or expenses rise.
While Zenith Bank and Access Holdings benefited significantly from lower credit losses, First HoldCo’s performance was substantially supported by trading and other non-interest income.
The banks’ statements on the nine-month results also highlighted different sources of earnings growth, with executives emphasising lower credit costs, diversified income and operating efficiency.
The Group Managing Director of Zenith Bank, Adaora Umeoji, said growth in lending, transaction volumes and deposits supported the bank’s performance, while “lower funding and credit costs contributed to profitability and improved earnings quality.”
Similarly, Access Holdings Group Chief Executive Officer Innocent Ike described the reduction in impairment charges and growth in income after impairment as evidence of the group’s stronger earnings base. He said the improvement “demonstrates the resilience of our core earnings base.”
First HoldCo recorded PBT of N911.24 billion, up 60.8 per cent, despite a 16 per cent decline in net interest income. Trading and fair-value income increased by about N190 billion, while higher fees and other operating income also supported profitability.
First HoldCo’s management highlighted the contribution of transaction-led revenues, with non-interest income growing by more than 143 per cent, helping to offset weaker net interest income.
Wema Bank’s net interest income increased by 38.3 per cent to N325.88 billion, supporting a 76.6 per cent rise in PBT to N258.64 billion.
Sterling Financial Holdings recorded a 43.9 per cent increase in net interest income to N205.90 billion, while PBT rose by 37.1 per cent to N97.28 billion. However, higher impairment charges and operating expenses absorbed part of the improvement.
Ecobank’s naira-denominated PBT declined marginally to N1.01 trillion as operating income weakened. GTCO’s PBT fell by 2.3 per cent as higher funding costs and operating expenses weighed on earnings.
Ecobank Group Chief Executive Officer Jeremy Awori identified deposit growth and operating efficiency as sources of resilience, while acknowledging risks from inflation, energy prices and foreign exchange volatility.
Jaiz Bank reported a 21.07 per cent increase in impairment charges to N1.28 billion, from N1.05 billion in the corresponding period of 2025. Its PBT rose by 1.7 per cent to N23.69 billion, from N23.29 billion.
Kayode Tokede
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