Eight Nigerian banks, including Jaiz Bank Plc, Zenith Bank Plc, and Ecobank Transnational Incorporated, have reported a significant decline in loan impairment charges. The banks' combined loan impairment charges dropped by 46.9% to N1.01 trillion in the nine months ended September 2026, compared with N1.91 trillion in the same period of 2025. This decline in impairment charges, often referred to as credit losses, helped lift the banks' combined profit before tax by 12.2% to N4.8 trillion.
The substantial decline in impairment charges was driven by lower credit-loss provisions at Guaranty Trust Holding Company (GTCO) Plc, Access Holdings Plc, Zenith Bank, and First HoldCo. Access Holdings recorded the largest percentage reduction in impairment charges, which fell by 73.5% to N92.91 billion. This decline contributed to a rise in profit before tax by 8.3% to N667.36 billion. Zenith Bank also reported a significant reduction in impairment charges, which declined by 70.5% to N230.77 billion, resulting in a 1.2% rise in profit before tax to N928.80 billion.
The decline in impairment charges at Zenith Bank and Access Holdings accounted for approximately N809 billion of the reported N906 billion reductions in impairment charges across the eight groups. GTCO also benefited from lower impairment charges, which declined by approximately N39.6 billion. However, its profit before tax declined by 2.3% to N879.90 billion. The results highlight that lower impairment charges can support earnings but do not automatically translate into higher profits when other income sources weaken or expenses rise.
The banks' statements on the nine-month results emphasised lower credit costs, diversified income, and operating efficiency as key drivers of their performance. Zenith Bank's Group Managing Director, Adaora Umeoji, attributed the bank's growth in lending, transaction volumes, and deposits to its performance. She noted that lower funding and credit costs contributed to profitability and improved earnings quality.
Access Holdings Group Chief Executive Officer Innocent Ike described the reduction in impairment charges and growth in income after impairment as evidence of the group's stronger earnings base. He stated that the improvement demonstrates the resilience of the group's core earnings base. First HoldCo recorded a significant increase in profit before tax, which rose by 60.8% to N911.24 billion, despite a 16% decline in net interest income.
The growth in First HoldCo's profit before tax was driven by an increase in trading and fair-value income, which rose by about N190 billion. The bank's performance was substantially supported by trading and other non-interest income. The results of the eight banks show that lower impairment charges can materially support earnings, but the impact on profitability can vary depending on other income sources and expenses.
The decline in loan impairment charges and the resulting increase in profit before tax demonstrate the improving financial performance of the eight Nigerian banks. The banks' ability to manage credit costs and diversify their income sources has contributed to their growth and resilience. As the banking sector continues to evolve, the eight banks' performance is likely to be influenced by various factors, including changes in regulatory requirements and economic conditions.
Key points
- Eight Nigerian banks report 46.9% decline in loan impairment charges to N1.01 trillion in nine months ended September 2026.
- The decline in impairment charges lifts profit before tax by 12.2% to N4.8 trillion.
- Lower impairment charges at GTCO, Access Holdings, Zenith Bank, and First HoldCo support their combined profitability.
