A historic milestone has been reached in Nigeria, with corporate post-tax profits surpassing N1 trillion for the first time. Both Zenith Bank and GTCO Holdings announced post-tax profits of more than N1 trillion. For FY 2024, they reported N1.03 trillion and N1.02 trillion.

The two most valuable banks in Nigeria reinforced their market standing with strong financial results. GTCO currently holds a market capitalization of N2.35 trillion, while Zenith Bank follows closely with a market cap of N1.93 trillion

This surge in profitability is attributable to the high-interest rate environment. In FY 2024, Zenith Bank and GTCO posted net interest incomes of N1.73 trillion and N1.06 trillion, respectively. For Zenith, this marks a 135 percent growth from the N707.5 billion net interest income posted in 2023. GTCO’s net interest income grew by 142 percent from the N437 billion posted in 2023.

GTCO and Zenith Bank are not the only beneficiaries. UBA’s net interest income grew by 116 percent in 2024, as it hit N1.53 trillion. Stanbic IBTC Bank also posted a net interest income of N394.1 billion in FY 2024. It marks a 140 percent growth from the N164.5 billion net interest income recorded in 2023.

In their unaudited account, FBN Holdings and Wema Bank posted net interest incomes of N1.39 trillion and N170.2 billion, respectively. This marked 155 percent and 86 percent growth, respectively, from their 2023 figures. Essentially, with benchmark interest rates moving from 18.75 percent to 27.5 percent in 2024, Nigerian banks capitalized and delivered unprecedented results.

Beyond lending, debt securities became a significant profit driver in 2024. Here’s a breakdown of the factors fueling this historic profit milestone.