Some of Nigeria’s biggest banks, such as Zenith Bank, Guaranty Trust Bank, UBA, Stanbic IBTC, and Fidelity Bank, reported record profits in their 2024 financial year, despite the tough economy, inflation, naira depreciation, and reduced purchasing power.

The five banks posted a profit after tax of N3.317 trillion, with financial experts warning that in dollar terms, these figures paint a different scenario as the naira has depreciated by about 70% against the dollar.

The top five banks with the highest profit

UBA’s post-tax profit rose 24.14% to N766.6 billion, from N607.7 billion in 2023, while Zenith Bank recorded a profit after tax of N1.03 trillion, representing a 52.5% increase from the previous year’s record of N676.9 billion.

Guaranty Trust Holding Company (GTCo) posted a profit after tax of N1,017 trillion in profit, an 88.4% increase from N539.6 billion in 2023.

Stanbic IBTC Holdings Plc recorded robust growth, posting a post-tax profit of 60.23% to N225.3 billion, while Fidelity Bank recorded a profit of N278.1 billion, representing 179.63%.

The naira devaluation leads to economic downturn

Experts say the naira devaluation significantly impacted banks, with many of them holding dollar-denominated assets, contributing to their reported gains when converted to the local currency.

Punch reports that while banks gained from the naira’s devaluation, other sectors suffered losses, with many companies packing up.

About 10 multinational companies have shut down operations or relocated from Nigeria since 2023, citing currency depreciation, rising costs, and economic uncertainty.

Notably, GlaxoSmithKline, a pharmaceutical giant, an oil firm, Equinor, and Unilever Nigeria are among the casualties of the naira devaluation.

The naira stabilises as CBN intervenes

However, the Nigerian currency has remained relatively stable against the dollar since December last year as the Central Bank of Nigeria (CBN) embarked on a series of reforms to infuse liquidity and transparency in the FX market.

Legit.ng reported that as of Friday, March 28, 2025, the naira traded at N1,536 to the dollar in the official window.

The naira’s devaluation comes from a policy shift by President Bola Tinubu’s government, including the scrapping of fuel subsidies.

Experts say some of these policies and reforms have resulted in high inflation, but have attracted a sizeable foreign investment.