Nigerian banks are increasingly turning to non-interest income to diversify revenue streams, enhance profitability, and mitigate risks associated with traditional interest-based models.
Analysts observed that this shift is mainly driven by economic volatility, regulatory changes, and the growing adoption of digital financial services.
Pinnacle Daily’s analysis of the financial statements of eight Nigerian commercial banks in the first quarter (Q1) of 2025 revealed that the United Bank for Africa (UBA), Access Bank and First City Monument Bank (FCMB) recorded significant growth in their non-interest incomes in the period.
The three banks recorded a combined total of ₦271.77 billion in Q1 2025.
Non-interest income is revenue that banks and other financial institutions earn from sources other than traditional interest on loans and investments.
This includes fees for services such as deposit accounts, ATM usage, overdrafts, mortgage origination, and penalties for late payments or insufficient funds.
It also extends to other operating income, like commissions, foreign exchange transactions, and gains from trading securities and derivatives.
Analysis of Q1 2025 financial statements of five other banks in Nigeria revealed mixed results. While some banks recorded an increase in non-interest income, others had significant growth in the interest income side.
UBA
According to UBA’s Q1 financial statement, the bank recorded an increase in both interest and non-interest income year on year.
UBA’s total non-interest income rose by 44.21 per cent year-on-year to ₦112.36 billion in Q1 2025 from ₦77.91 billion in the corresponding period of 2024. This was led by a 15.74 per cent rise in net fee and commission income to ₦77.96 billion.
“This growth was supported by jumps in credit-related fees, account maintenance charges, and electronic banking income,” analysts at WSTC Securities Limited observed.
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The analysts maintained their earlier projections on non-interest income, stating that fee and commission income is expected to be the primary driver in 2025, as they anticipate no significant rise in foreign exchange-related gains compared to last year.
The UBA’s interest income rose by 36 percent to ₦599.83 billion from ₦440.77 billion in Q1 2024, driven by a 17 percent growth in income from loans and advances (₦229.35 billion against ₦195.31 billion) and a 44 percent spike in income from investment in securities (₦289.08 billion vs. ₦201.03 billion).
The report revealed that the contribution of interest income from loans to total interest income decreased to 38 per cent from 44 per cent, while the share of investment in securities expanded to 48 per cent from 46 per cent.
UBA recorded a 34 per cent surge in gross earnings to ₦764.31 billion in Q1 2025 from ₦570.20 billion in Q1 2024. It also recorded a year-on-year increase of 33 per cent in profit after tax. This growth came from interest and non-interest income.
Access Bank
Access Bank’s interest income rose to ₦962.87 billion in Q1 2025 from ₦608.1 billion in Q1 2024, reflecting a year-on-year increase of 158.25 per cent.
The bank reported that its net fee and commission income (a component of non-interest revenue) grew by 62.92 per cent year-on-year to ₦135.12 billion in Q1 2025 from ₦82.94 billion in Q1 2024.
This was supported by stronger transaction volumes and service-related fees, reflecting the bank’s diversified income base.
FCMB
FCMB recorded an increase in its non-interest income in Q1 2025. This is indicated in the fees and commission income, which rose by 43.4 per cent year-on-year to ₦24.29 billion from ₦16.94 billion in the same period of 2024.
Also, the bank earned ₦14.34 billion from trading income (from foreign exchange, FGN bonds, and treasury bills). This reflects a 50.75 per cent increase from ₦9.51 billion in the previous year.
Zenith Bank
Zenith Bank’s non-interest income in the first quarter, ended 31st March 2025, declined by 67 per cent to ₦112.21 billion, mainly due to an 89 per cent drop in trading income, which went down by 89.48 per cent (₦22.17 billion) in Q1 2025 from ₦210.69 billion in Q1 2024.
“This performance reflects the absence of the large foreign exchange gains recorded in the previous year when the Group benefited from derivative positions during a period of significant naira volatility.
In contrast, Q1 2025 was marked by relative currency stability,” said analysts at WSTC Securities Limited.
However, the bank’s interest income surged year-on-year by 71 per cent to ₦837.64 billion from ₦488.55 billion in Q1 2024. This was attributed to a 53 per cent rise in income from loans and other advances to customers from ₦300.51 billion to ₦460.97 billion.
The bank’s unaudited financial results for Q1 2025 indicated that its gross earnings rose by 22 per cent from ₦781 billion in Q1 2024 to ₦950 billion.
First Bank of Nigeria
First Bank of Nigeria Holdings also recorded a decline in its non-interest income. According to the Q1 2025 financial statement, the non-interest income dropped by 83.42 per cent to ₦47.91 billion from ₦288.94 billion in Q1 2024
The financial institution’s interest income in Q1 2025 rose by 37.43 per cent to ₦625.28 billion from ₦446.15 billion in Q1 2024. This growth was largely driven by high yields in loans and advances to customers (₦364.17 billion) and investment securities.
The group’s pre- and post-tax profit dropped in Q1 2025. The PBT fell by 21.82 per cent to ₦186.48 billion in Q1 2025 from ₦234.17 billion in Q1 2024. Consequently, the PAT declined by 19.59 per cent to ₦167.39 billion in Q1 2025 from ₦208.16 billion recorded in Q1 2024.
Guaranty Trust Holding Company (GTCO)
For GTCO, the overall non-interest income was not explicitly stated as a single total. The components show mixed results. While some indicate significant growth, others show a drop.
For instance, fee and commission income increased by 41.2 per cent to ₦79.06 billion from ₦55.99 billion, owing to higher transaction volumes and better digital channel utilisation.
Fee-related expenses increased to ₦7.76 billion, up from ₦3.74 billion. Nonetheless, net fee and commission income increased by 36.4 per cent, reaching ₦71.30 billion.
However, the part for “other income” plunged by 91.83 per cent to ₦26.54 billion in Q1 2025 from ₦325.02 billion in Q1 2024. This was attributed to one-off gains in 2024 that did not recur in 2025.
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The bank group recorded ₦318.36 billion as interest income in March 2025, a 24.1 per cent increase from ₦277.30 billion in the corresponding period of 2024
Ecobank Transnational Incorporated
Ecobank’s non-interest revenue in Q1 2025 increased by 7 per cent to $220.83 million in Q1 2025 from $206.50 million in Q1 2024. This growth was primarily driven by a rise in net fee and commission income from trade and cards.
The bank posted a net interest income of $295.44 million in Q1 2025, a 2 per cent increase from $289.44 million in the previous year’s Q1. Fee and commission income rose by 6 per cent to $144.50 million from $136.35 million in Q1 2024.
It also recorded growth in its profit for the period. The bank’s profit after tax rose YoY by 33 per cent to ₦187.11 billion from ₦140.89 billion.
Stanbic IBTC
Stanbic IBTC’s non-interest revenue fell by 13.39 per cent to ₦53.124 billion from ₦61.34 billion.
Interest income rose by 56 per cent to ₦180.47 billion in Q1 2025 from ₦115.80 billion in Q1 2024, reflecting the sustained impact of a higher interest rate environment and growth in interest-earning assets.
The bank, however, started the 2025 financial year on a positive note, recording a 30 per cent year-on-year growth in gross earnings.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
