Zenith, GTCO, and FirstHoldCo earned a total of N2.85 trillion from Treasury bills in 2025, marking a significant 43.03% year-on-year (YoY) increase compared to the N1.99 trillion recorded in 2024.
This sharp rise emphasizes the growing reliance on short-term government debt instruments by banks in response to market conditions.
The data, compiled by the Nairametrics Research Team from the latest financial statements of the banks, reveals substantial gains in Treasury bills interest income across key players in the Nigerian banking sector.
This growth comes alongside a rise in interest income from loans and advances, which saw a 22.68% YoY increase.
These results highlight an overall upward trajectory in the banks’ interest income, driven by higher Treasury bills and loan yields. Combined growth in Treasury bills interest income suggests banks are leveraging low-risk government instruments to balance lending risk.
What the data is saying
The data analysis highlights significant growth in both Treasury bills and loans and advances interest income for the three banks, with varying contributions to their overall income.
- Zenith Bank saw a massive 94.76% increase in interest from Treasury bills, rising to N1.13 trillion from N579.92 billion in 2024. In comparison, interest from loans and advances grew by 20.15%, amounting to N1.82 trillion in 2025 from N1.52 trillion in 2024. While Treasury bills accounted for 30.75% of its total interest income, loans and advances contributed 49.66%, showing Zenith’s dominant reliance on lending.
- GTCO experienced a 34.85% rise in Treasury bills income (investment securities), reaching N758.74 billion, up from N562.64 billion in 2024. Its loans and advances interest also grew by 9.85%, totaling N559.40 billion in 2025. Treasury bills made up 45.90% of its total interest income, slightly more than the 33.84% contributed by loans and advances, reflecting a more balanced portfolio between government debt and lending activities.
- FirstHoldCo posted a 13.16% increase in Treasury bills income, totaling N962.39 billion from N850.46 billion in 2024. In comparison, its interest from loans and advances rose significantly by 29.38%, reaching N2.00 trillion in 2025. Although Treasury bills represented 32.47% of its total interest income, loans and advances accounted for a dominant 67.53%, showing that despite the solid growth in Treasury bills, FirstHoldCo’s main income driver remains its loan portfolio.
Overall, while all three banks have significantly increased their Treasury bills income, the relative contribution of loans and advances remains the primary source of income for these banks.
What this means
The data emphasizes a growing trend among Zenith, GTCO, and FirstHoldCo to diversify their income sources, with a noticeable shift towards Treasury bills, especially Zenith Bank.
- While loans and advances continue to be the dominant source of income, the increased reliance on Treasury bills signals a strategic move towards lower-risk, higher-yielding investments, particularly in uncertain economic environments.
- Zenith Bank’s significant jump in Treasury bills income suggests a strong positioning in the government securities market, which now contributes nearly 31% of its total interest income. The faster growth in Treasury bills compared to loans indicates that Zenith is adjusting its portfolio to maximize returns from safer, more liquid assets while still maintaining a robust lending business.
- GTCO appears to maintain a more balanced approach, with Treasury bills representing nearly 46% of its total interest income. While it still sees substantial income from loans, the increase in Treasury bills income signals a cautious, yet opportunistic approach to market conditions. The bank is likely capitalizing on the yield advantage from government securities while sustaining lending growth.
- FirstHoldCo’s strong reliance on loans and advances, which make up more than 67% of its total interest income, positions it as the most loan-focused among the three. However, its 13.16% growth in Treasury bills income reflects a strategic diversification that aims to cushion its lending-heavy portfolio against potential market volatility.
The data highlights that Zenith Bank is likely the most aggressive in investing in government-backed securities, even though interest from loans and advances is still dominant, with about 50%, while GTCO is adopting a more moderate approach, balancing between loans and Treasury bills. FirstHoldCo, on the other hand, remains predominantly focused on its lending business but is also taking steps to expand its involvement in Treasury bills as a hedge.
What you should know
In recent articles published by Nairametrics for Zenith Bank, GTCO, and FirstHoldCo, the financial performances of the banks were summarized as follows:
- Zenith Bank saw a strong performance with a 52.67% YoY increase in net interest income, reaching N2.6 trillion, driven by higher interest from loans and advances (N1.8 trillion) and Treasury bills (N1.1 trillion). However, impairment charges led to a reduction in net interest income to N1.89 trillion after accounting for a N742.1 billion impairment on financial instruments.
- GTCO posted a rise in interest income to N1.6 trillion, with loans and advances contributing the largest portion (N559.3 billion). Net interest income rose to N1.26 trillion, up from N1.05 trillion in the previous year. The bank also recorded growth in non-interest income, notably from fees and commissions, which rose 28.8% YoY.
- FirstHoldCo recorded a significant increase in impairment charges (75.48%), particularly on loans and advances to customers, amounting to N710 billion. Despite this, net interest income improved to N1.91 trillion, up from N1.4 trillion in 2024, demonstrating strong core operations despite higher provisions for loan defaults.
