In 2024, five Nigerian banks generated a combined N1.695 trillion in pre-tax profit from their foreign subsidiaries, which accounted for 33.5% of their combined group profit of N5.060 trillion. Despite this strong contribution, Nigerian operations continue to account for the bulk of group earnings. Overall, the groups posted strong performance in 2024, buoyed by policy-induced macroeconomic shifts such as elevated interest rates and devaluation of the Naira. These conditions spurred foreign exchange gains and boosted interest income from loans, advances, and investments in Treasury Bills and bonds. First Holdco, UBA, GTCO, Access Holdings, and Zenith Bank saw their gross earnings rise by 82% YoY, reaching N17.397 trillion in 2024 from N9.55 trillion in 2023. This strong top-line growth translated into a 56% YoY rise in pre-tax profit, reaching N5.060 trillion. Zenith Bank generated N187 billion in pre-tax profit from its four foreign subsidiaries in Ghana, Sierra Leone, Gambia, and the UK in 2024. This represents about 14% of the Group’s reported pre-tax profit of N1.327 trillion, down from a 16.5% contribution in 2023.
While this ranked it fourth among peers, it reflects a relatively strong performance considering its fewer offshore units. Zenith Bank UK led the pack with N84.1 billion in pre-tax profit, up 71.27% YoY, followed closely by Zenith Bank Ghana with N82 billion, also up from N75 billion in 2023.
Despite this, Zenith’s Nigerian operations remain dominant, contributing N1.133 trillion out of group’s N1.33 trillion pre-tax profit, representing over 84% contribution. For First Holdco Plc, the parent company of First Bank of Nigeria, has six subsidiaries across Africa and one in the United Kingdom. The bank also maintains representative offices in China and France, underlining its strategic global presence. In its 2024 results presentation, the group disclosed that its foreign subsidiaries contributed 27.5% of its total pre-tax profit of N796.47 billion. This translates to a significant N219.03 billion pre-tax profit generated from international operations. While First Holdco did not provide a detailed breakdown of these earnings, the figure highlights the substantial impact of its cross-border operations on overall performance. GTCO’s foreign subsidiaries on the other hand recorded N273 billion in pre-tax profit in 2024, up 109% from N130.66 billion in 2023. This puts the offshore contribution at 21.57%, almost unchanged from the 21.44% recorded in 2023. The group operates in eight countries: Ghana, Liberia, Kenya, Tanzania, Côte d’Ivoire, Gambia, Sierra Leone, and the UK.
GT Bank Ghana led the group with N118.96 billion, up 81% YoY. All subsidiaries were profitable except GT Bank Tanzania, which posted a pre-tax loss of N1.1 billion, up from N26 million in 2023. Foreign subsidiaries contributed N273 billion to GTCO Group’s N1.266 trillion pre-tax profit in 2024, while GTCO Nigeria accounted for N1.003 trillion. In addition, the Group’s non-banking businesses including Habari Pay Ltd, Asset Management, and Pension Fund operations saw their combined contribution rise significantly to N14.59 billion in 2024, up from N5.96 billion in 2023. Despite the growth in foreign and non-banking contributions, GTCO Nigeria still accounts for over 79% of the Group’s total profit, underscoring its dominant role in overall performance.
In the same vein, Access Holdings’ 15 offshore subsidiaries generated N459.99 billion in pre-tax profit in 2024, representing a 131% year-on-year (YoY) increase. This accounted for 53% of the Group’s adjusted pre-tax profit of N867.02 billion, a significant rise from the 27.32% contribution in 2023. The standout performer was Access Bank UK, contributing N259.1 billion, more than half of the total. However, the group also recorded losses from three subsidiaries South Africa, Mozambique, and Kenya. On the revenue side, Access Holdings recorded N4.878 trillion in gross earnings for 2024, with its foreign operations contributing N1.1 trillion, highlighting the growing significance of its international footprint.
UBA, with operations in 20 African countries and the UK, led its peers in 2024 by generating N556.36 billion in pre-tax profit from its foreign operations. This accounted for 69.22% of the group’s adjusted pre-tax profit of N803.73 billion, following group-level eliminations and consolidations. The 2024 contribution marks a significant jump from 29.69% in 2023, highlighting the growing strength of UBA’s offshore operations Notably, this figure exceeds the N486.53 billion generated by UBA Nigeria meaning the subsidiaries outperformed the domestic arm.
Among the subsidiaries, UBA Cameroon (N96.63 billion) and UBA Côte d’Ivoire (N57.24 billion) led profit contributions. Only UBA Kenya and UBA Tanzania posted pre-tax losses. Impairment losses across UBA’s foreign subsidiaries declined 64.27% YoY to about N53 billion, with UBA Ghana accounting for the highest impairment at N24 billion. Meanwhile, operating revenue of the foreign subsidiaries rose 106% YoY to N1.577 trillion.
Insight
The growing profitability of foreign subsidiaries highlights the success of Nigerian banks’ regional expansion strategies. These offshore operations provide vital revenue diversification and a hedge against domestic volatility.
