Regardless of robust macroeconomic situations, ten industrial banks listed on the Nigerian Change (NGX) recorded a complete of N3.77 trillion in mortgage impairment prices spanning full-year 2023, full-year 2024, and the primary quarter of 2025.
The costs amounted to N1.34 trillion in 2023, elevated considerably to N2.13 trillion in 2024, and stood at N297.10 billion in simply the primary three months of 2025.
A lot of the spike in unhealthy loans might be attributed to Nigeria’s macroeconomic volatility, notably the sharp devaluation of the naira in mid-2023, hovering inflation, and better rates of interest, all of which squeezed company margins, lower into family incomes, and raised the price of servicing debt.
Nonetheless, whereas that is substantial, the banks seem like managing the storm, with key danger metrics exhibiting some resilience. Additionally, the Banks themselves are projecting confidence of their capacity to journey out the storm.
Fidelity Bank, as an example, acknowledged the macroeconomic pressures in its 2024 earnings launch but in addition pointed to improved inner efficiency. CEO Nneka Onyeali-Ikpe stated:
“Web Curiosity Margin (NIM) improved to 12.0% from 8.1% as a result of high-yield setting. Regardless of the rise within the Financial Coverage Charge, our funding price remained comparatively fixed at 5.2%. Our NPL ratio improved from 3.5% to three.0%, and the price of danger moderated from 2.6% to 1.5%, reflecting the effectivity of our danger administration processes.”
Entry Holdings echoed an identical outlook in its 2024 outcomes presentation:
“Asset high quality stays secure with a marginal enchancment within the NPL ratio to 2.76% (Dec’23: 2.78%) on the again of proactive monitoring and a consolidated strategy to danger administration. We keep an outlook of lower than 5% NPL ratio in 2025.”
In the meantime, Zenith Bank highlighted the energy of its portfolio:
“We keep a stable portfolio high quality with 96% of our loans in Stage 1 and Stage 2. Our NPL ratio stood at 4.7% in 2024 in comparison with 4.4% in 2023. Oil and gasoline publicity accounted for 30.5%, and normal commerce 26.6%, demonstrating our sectoral diversification.”
Now, allow us to break down how every of those banks fared individually and what their numbers inform us.
10 – Wema Bank
Wema Bank recorded whole mortgage losses of N26.6 billion from 2023 to Q1 2025, representing 8.19% of its internet curiosity earnings of N325.37 billion over the identical interval.
The {bank}’s price of danger was 3.18% in 2024, and its non-performing mortgage (NPL) ratio improved to three.86%, down from 4.31% in 2023.
9 – FCMB
First Metropolis Monument {Bank} (FCMB) recorded whole mortgage losses of N93.55 billion from 2023 to Q1 2025, representing 19.12% of its whole internet curiosity earnings of N489.39 billion over the identical interval.
8 – Stanbic IBTC
Stanbic IBTC recorded whole mortgage impairment prices of N109.59 billion between 2023 and Q1 2025, equal to 14.9% of its internet curiosity earnings of N735.53 billion.
Stanbic’s price of danger stood at 3.5% in 2024. In the meantime, its non-performing mortgage (NPL) ratio additionally rose to 4.2%, up from 2.4% in 2023.
7 – Fidelity Bank
Fidelity Bank recorded whole mortgage losses of N128.88 billion between 2023 and Q1 2025, representing 11.47% of its internet curiosity earnings of N1.098 trillion.
Constancy recorded a low and enhancing price of danger — 1.5% in 2024 in comparison with 2.6% in 2023 — suggesting that the proportion of its mortgage guide being written off remained modest and was trending in the correct route.
6 – Entry Holdings
Entry Holdings reported whole mortgage losses of N247.34 billion between 2023 and Q1 2025.
This represents 13.75% of its N1.80 trillion internet curiosity earnings for 2023 FY, 2024 FY, and Q1 2025.
Entry has a low and secure price of danger — 1.25% in 2024 and 1.22% in 2023. This implies that Access Bank’s mortgage portfolio remained wholesome, and it didn’t must make massive provisions.
5 – GTCO
This represents about 13.95% of its N1.81 trillion internet curiosity earnings for 2023 FY, 2024 FY, and Q1 2025.
This represents about 13.95% of its N1.81 trillion internet curiosity earnings for 2023 FY, 2024 FY, and Q1 2025.
4 – UBA
