Despite tough macroeconomic conditions, ten commercial banks listed on the Nigerian Exchange (NGX) recorded a total of N3.77 trillion in loan impairment charges spanning full-year 2023, full-year 2024, and the first quarter of 2025.
The charges amounted to N1.34 trillion in 2023, increased significantly to N2.13 trillion in 2024, and stood at N297.10 billion in just the first three months of 2025.
Much of the spike in bad loans can be attributed to Nigeria’s macroeconomic volatility, particularly the sharp devaluation of the naira in mid-2023, soaring inflation, and higher interest rates, all of which squeezed corporate margins, cut into household incomes, and raised the cost of servicing debt.
Still, while this is substantial, the banks appear to be managing the storm, with key risk metrics showing some resilience. Also, the Banks themselves are projecting confidence in their ability to ride out the storm.
Fidelity Bank, for instance, acknowledged the macroeconomic pressures in its 2024 earnings release but also pointed to improved internal performance. CEO Nneka Onyeali-Ikpe said:
“Net Interest Margin (NIM) improved to 12.0% from 8.1% due to the high-yield environment. Despite the increase in the Monetary Policy Rate, our funding cost remained relatively constant at 5.2%. Our NPL ratio improved from 3.5% to 3.0%, and the cost of risk moderated from 2.6% to 1.5%, reflecting the efficiency of our risk management processes.”
Access Holdings echoed a similar outlook in its 2024 results presentation:
“Asset quality remains stable with a marginal improvement in the NPL ratio to 2.76% (Dec’23: 2.78%) on the back of proactive monitoring and a consolidated approach to risk management. We maintain an outlook of less than 5% NPL ratio in 2025.”
Meanwhile, Zenith Bank highlighted the strength of its portfolio:
“We maintain a solid portfolio quality with 96% of our loans in Stage 1 and Stage 2. Our NPL ratio stood at 4.7% in 2024 compared to 4.4% in 2023. Oil and gas exposure accounted for 30.5%, and general commerce 26.6%, demonstrating our sectoral diversification.”
Now, let us break down how each of these banks fared individually and what their numbers tell us.
10 – Wema Bank
Wema Bank recorded total loan losses of N26.6 billion from 2023 to Q1 2025, representing 8.19% of its net interest income of N325.37 billion over the same period.
- N7.53 billion in 2023
- N17.99 billion in 2024
- N1.13 billion in Q1 2025
The bank’s cost of risk was 3.18% in 2024, and its non-performing loan (NPL) ratio improved to 3.86%, down from 4.31% in 2023.
9 – FCMB
First City Monument Bank (FCMB) recorded total loan losses of N93.55 billion from 2023 to Q1 2025, representing 19.12% of its total net interest income of N489.39 billion over the same period.
- N46.75 billion in 2023
- N34.12 billion in 2024
- N12.69 billion in Q1 2025
8 – Stanbic IBTC
Stanbic IBTC recorded total loan impairment charges of N109.59 billion between 2023 and Q1 2025, equivalent to 14.9% of its net interest income of N735.53 billion.
- N16.8 billion in 2023
- N88.7 billion in 2024
- N4.10 billion in Q1 2025
Stanbic’s cost of risk stood at 3.5% in 2024. Meanwhile, its non-performing loan (NPL) ratio also rose to 4.2%, up from 2.4% in 2023.
7 – Fidelity Bank
Fidelity Bank recorded total loan losses of N128.88 billion between 2023 and Q1 2025, representing 11.47% of its net interest income of N1.098 trillion.
- N63.4 billion in 2023
- N51.6 billion in 2024
- N10.83 billion in Q1 2025
Fidelity recorded a low and improving cost of risk — 1.5% in 2024 compared to 2.6% in 2023 — suggesting that the proportion of its loan book being written off remained modest and was trending in the right direction.
6 – Access Holdings
Access Holdings reported total loan losses of N247.34 billion between 2023 and Q1 2025.
- N84.4 billion in 2023
- N92.9 billion in 2024
- N70 billion in Q1 2025
This represents 13.75% of its N1.80 trillion net interest income for 2023 FY, 2024 FY, and Q1 2025.
Access has a low and stable cost of risk — 1.25% in 2024 and 1.22% in 2023. This suggests that Access Bank’s loan portfolio remained healthy, and it did not need to make large provisions.
5 – GTCO
Guaranty Trust Holding Company (GTCO) reported total loan losses of N253.04 billion from 2023 to Q1 2025, a moderate figure compared to its peers.
- N102.8 billion in 2023
- N137 billion in 2024
- N13.4 billion in Q1 2025
This represents about 13.95% of its N1.81 trillion net interest income for 2023 FY, 2024 FY, and Q1 2025.
4 – UBA
United Bank for Africa (UBA) saw loan losses hit N423.63 billion from 2023 to Q1 2025.
- N154 billion in 2023
- N258.9 billion in 2024
- N11.1 billion in Q1 2025
However, the cost of risk how much of its total loan book was written off remained low and steady: 3.18% in 2024 vs. 3.09% in 2023. This suggests that loan quality remained largely stable, and UBA’s credit risk has not significantly worsened.
3 – First Holdco
First Bank Holdings (First Holdco) saw loan losses hit N586.94 billion between 2023 and Q1 2025 — the third highest among Nigerian banks.
- N174.7 billion in 2023
- N371 billion in 2024
- N41.2 billion in Q1 2025
These impairments represent roughly 25% of its N2.3 trillion net interest income, indicating a sizable impact on profitability.
Asset quality weakened during the period. The NPL ratio more than doubled to 10.2% in 2024 from 4.7% in 2023, while the NPL coverage ratio declined sharply to 51%, down from 92%.
2 – ETI
Ecobank Transnational Incorporated (ETI) saw loan losses hit N869.5 billion from 2023 to Q1 2025, the second highest among Nigerian banks.
- N288.4 billion in 2023
- N484.5 billion in 2024
- N96.6 billion in Q1 2025
These impairments represent over 29% of its N2.9 trillion net interest income, signaling a significant drag on earnings.
1 – Zenith Bank
Zenith Bank recorded the highest total loan losses amounting to N1.03 trillion from 2023 to Q1 2025:
- N401 billion in 2023
- N594 billion in 2024
- N36 billion in Q1 2025
However, the bank strengthened its buffers. The NPL coverage ratio rose to 223% in 2024, up from 171% in 2023, indicating it set aside significantly more provisions to absorb potential credit losses.
Also, the cost of risk, the proportion of its loan book written off, remained flat at 7.3% in 2024. This suggests that the risk profile of its loan book was stable.
