Nigeria’s Top Banks Post ₦2.7 Trillion Pretax Profit in H1 2025 Despite 12% Decline

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Nigeria’s top ten banks listed on the Nigerian Exchange (NGX) reported a combined pretax profit of ₦2.7 trillion for the six months ended June 30, 2025, reflecting a 12% year-on-year decline from the ₦3.16 trillion recorded in the corresponding period of 2024.

Despite the drop, analysts say the results highlight the resilience and solid performance of the Nigerian banking sector amid a volatile macroeconomic environment marked by inflationary pressures, tight monetary policy, and rising operating costs.

Sector Still Shows Strength

Profit before tax (PBT) remains a critical indicator of a bank’s financial health and operational efficiency, showing how much an institution earns after accounting for expenses, impairments, and other costs but before taxes.

Most leading banks have now released their H1 2025 financial results, except Fidelity Bank, which is yet to publish its performance figures.

This report focuses on the absolute pretax profit amounts recorded in the period, offering a snapshot of each bank’s profitability during the first half of 2025.

Jaiz Bank Enters the Top 10 with ₦14.7 Billion PBT

Jaiz Bank Plc, Nigeria’s premier non-interest (Islamic) bank, ranked 10th among the top ten most profitable banks, posting a pretax profit of ₦14.7 billion for the first half of 2025. This represents a 27.64% increase from ₦11.5 billion in the same period of 2024.

The bank’s top-line performance was buoyed by strong growth in financing contracts, which rose 31.9% to ₦19.6 billion.

• Murabaha transactions (cost-plus financing) contributed ₦13.8 billion.

• Ijara deals (lease-based financing) added ₦4.7 billion.

• Other income sources accounted for the balance.

Income from investing activities surged to ₦24.3 billion, driving total gross income to ₦44 billion. After accounting for an impairment charge of ₦351.5 million, net income after provisions climbed 29.5% to ₦43.6 billion.

The bank also recorded ₦2.4 billion in fee and commission income, and despite ₦18.4 billion in operating expenses, Jaiz Bank closed the half year with a robust ₦14.7 billion profit before tax.

Balance Sheet Snapshot

As of June 2025, total assets stood at ₦964 billion, down 10.8% year-on-year, while retained earnings remained stable at ₦15.6 billion, underscoring a steady capital position.

Outlook

Market watchers say Jaiz Bank’s continued profitability reflects growing investor confidence in ethical finance models and the increasing appeal of non-interest banking products in Nigeria.

The broader banking sector, they note, is likely to maintain its profitability trajectory into the second half of 2025, supported by higher yields on government securities, digital revenue growth, and disciplined cost management — though headwinds from inflation and FX volatility may persist.