Nigerian Banks investment in foreign branches pays off with N627 billion in pre-tax profit generated in 2023

Story highlights

  • Nigerian banks’ cross-border expansion aimed at seeking incremental value has continued to boost their bottom lines.
  • In 2023, four Tier-1 Nigerian banks generated N627.027 billion from their foreign subsidiaries, reflecting a 319% year-over-year growth
  • This increase can be attributed to significant growth in gross earnings from these foreign subsidiaries.

Nigerian banks recorded an impressive performance in 2023, driven by policy shifts including increased interest rates to combat inflation and Naira devaluation, which led to foreign exchange gains and substantial growth in interest income.

For example, four Tier-1 banks; Access Holding, GTCO, UBA, and Zenith Bank, saw their gross earnings grow by 114.40% Year-on-Year, reaching N7.988 trillion in 2023.

This impressive growth contributed to a cumulative 233% YoY increase in pre-tax profit, totaling N2.892 trillion.

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