United Bank for Africa (UBA) and Guaranty Trust Holding Company (GTCO) recorded the weakest performances among Nigeria’s major banks in the first quarter of 2026, Pinnacle Daily reports.
A review of the financial statements of seven banks for the period ended March 31, 2026, shows that foreign exchange (FX) losses and market-related shocks weighed on their profits compared to the same period in 2025.
The other banks reviewed include Access Holdings, Ecobank Transnational Incorporated (ETI), Stanbic IBTC Holdings, Wema Bank, and Zenith Bank.
Overall, the banks posted a combined profit after tax of about ₦1.27 trillion in Q1 2026, slightly higher than the roughly ₦1.25 trillion recorded in the same quarter of 2025.
At the same time, total impairment charges rose significantly to about ₦364.29 billion from ₦218.46 billion, showing that more loans turned risky.
But interest income remained strong overall, increasing to about ₦4.02 trillion from ₦3.80 trillion, supported by high interest rates and increased lending.
UBA recorded the biggest drop in profit among the other banks, with earnings falling by 22.8 per cent to ₦146.62 billion from ₦189.84 billion in Q1 2025.
A cursory look at its results shows that the main reason for this decline was a large foreign currency revaluation loss of ₦342.03 billion, compared to a small gain of ₦3.8 billion in the previous year.
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Although the bank’s interest income rose by 6.9 per cent to ₦641.10 billion, it was not enough to cover the impact of the currency loss and a sharp increase in costs, including a 191 per cent rise in impairment charges to ₦41.24 billion.
GTCO also saw its profit fall, dropping by 15.4 per cent to ₦218.13 billion from ₦257.91 billion in Q1 2025.
This decline happened despite a 17.5 per cent increase in interest income to ₦467.00 billion and a 40 per cent reduction in impairment charges to ₦8.12 billion.
The key factor behind the weaker performance was a ₦40.42 billion loss from changes in the value of financial instruments, which reduced the bank’s overall earnings.
While these two banks faced setbacks, others posted growth driven by different factors.
Access Holdings recorded an 18.5 per cent rise in profit to ₦216.54 billion, supported by a ₦176.43 billion gain from foreign exchange trading and higher interest income, although this was partly reduced by a sharp rise in impairment charges to ₦73.81 billion.
ETI reported a modest 5.6 per cent increase in profit to ₦197.53 billion, but this was held back by a 57 per cent jump in impairment charges to ₦179.24 billion.
Stanbic IBTC Holdings delivered a strong performance, with profit rising by 40 per cent to ₦114.92 billion.
This growth was driven by a major turnaround in trading income, which moved from a loss of ₦6.97 billion in Q1 2025 to a gain of ₦55.16 billion in 2026, even as impairment charges shifted from a write-back to a charge.
Wema Bank recorded the fastest growth, with profit increasing by 76.1 per cent to ₦63.13 billion, supported by a 63.5 per cent rise in interest income and lower impairment charges of ₦1.44 billion.
Zenith Bank posted the highest profit among the group at ₦314.02 billion, but growth was almost flat at 0.7 per cent.
Its performance was supported by a 3.8 per cent increase in interest income to ₦869.10 billion, but this was weighed down by a ₦24.79 billion trading loss, higher technology costs and a 16.6 per cent rise in impairment charges.
Pinnacle daily earlier reported that foreign exchange losses and rising loan impairments were significant factors that combined to erode UBA’s 2025 financial year profit and force a steep cut in shareholders’ return.
In another analysis, it was revealed that seven banks wrote off about ₦2.38 trillion in bad loans in 2025, as the Central Bank of Nigeria’s (CBN) stricter stance on forbearance and loan classification forced the banks to clean up long-standing credit risks.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X