UBA, Access Holdings Emerge Clear Leaders In Foreign Profitability – Independent Newspaper Nigeria

By Pune Media On Jun 16, 2025

In 2024, foreign subsidiaries contributed significantly to the performance of Nigeria’s biggest banks, both in terms of revenue and profit.

UBA and Access Holdings, in particular, crossed critical thresholds—where offshore profits either matched or exceeded local earnings—demonstrating a shift in business models toward truly pan-African banking institutions.

In the 2024 financial year, Nigeria’s top five tier-1 banks—First Holdco, UBA, GTCO, Access Holdings, and Zenith Bank, collectively known by the acronym FUGAZ—generated an impressive N1.695 trillion in pre-tax profit from their foreign subsidiaries.

This figure represents 33.5 percent of their combined group profit of N5.060 trillion, underscoring the growing importance of regional and international operations in an increasingly globalized banking environment.

While Nigerian operations remain dominant in terms of overall profitability, the surge in offshore contributions reflects the strategic success of long-standing regional expansion plans. It also highlights the value of diversification amid Nigeria’s macroeconomic volatility.

The strong performance in 2024 was driven largely by policy-induced macroeconomic shifts, including high interest rates and the continued devaluation of the naira, which boosted foreign exchange (FX) revaluation gains and interest income across the board.

The banks’ combined gross earnings jumped 82% year-on-year, reaching N17.397 trillion, up from N9.55 trillion in 2023. This translated to a 56% rise in pre-tax profits, as the banks capitalised on improved yields from loans, government securities, and investments, along with favorable currency translation effects from their foreign businesses.

However, while the macro environment provided tailwinds, the performance of each bank’s offshore operations varied widely, reflecting differing regional strategies, market penetration, and operational maturity.

Bank-by-Bank Breakdown

UBA

UBA emerged as the most internationally diversified of the FUGAZ banks in FY2024. Its foreign subsidiaries generated N556.36 billion in pre-tax profit—69.2 percent of the group’s total—surpassing the N486.53 billion posted by its Nigerian arm.

This performance marks a significant increase from 29.7 percent in 2023, illustrating the rapid acceleration in its offshore business scale.

UBA’s operations span 20 African countries and the UK, with its highest contributors being UBA Cameroon (N96.63 billion) and UBA Côte d’Ivoire (N57.24 billion).

Interestingly, only UBA Kenya and Tanzania posted losses, suggesting robust profitability across its broader African network.

Notably, the group’s foreign operating revenue rose 106 percent YoY to N1.577 trillion, while impairment losses dropped sharply by 64.3 percent, further supporting profit growth.

These trends highlight a successful execution of UBA’s pan-African strategy and a milestone in its transformation from a Nigerian-centric lender to a continental banking powerhouse.

Access Holdings

Access Holdings reported the highest year-on-year growth in foreign subsidiary profits among the group, with a 131 percent increase to N459.99 billion in 2024.

This accounts for 53 percent of group pre-tax profit, up from just 27.3 percent the previous year—a sharp pivot in business orientation.

The group operates in 15 countries outside Nigeria, and its standout performer was Access Bank UK, which contributed N259.1 billion, more than half of the total foreign profit. However, not all units were profitable.

The subsidiaries in South Africa, Mozambique, and Kenya reported losses, reflecting challenges in newer or structurally weaker markets.

Nevertheless, the scale of Access Bank’s global footprint and the gains from key strategic markets are starting to bear fruit.

The bank’s international operations also generated N1.1 trillion in gross earnings, about 22.5 percent of its group total of N4.878 trillion.

This momentum positions Access as one of the most aggressive and diversified of the FUGAZ banks, and a strong contender in the race for African banking dominance.

GTCO

GTCO’s foreign subsidiaries posted N273.14 billion in pre-tax profit in 2024, up 109 percent YoY from N130.66 billion. The offshore contribution made up 21.6 percent of total group profit, almost flat from 2023 (21.4%), suggesting steady but moderate diversification.

The group operates in eight countries, including Ghana, Liberia, Kenya, and the UK. GT Bank Ghana was the best performer, generating N118.96 billion, up 81% YoY. However, the group also saw a setback in Tanzania, where it posted a loss of N1.1 billion.

Importantly, GTCO’s non-banking subsidiaries, including fintech and pension businesses, grew their pre-tax profit contribution to N14.6 billion, from N5.96 billion in 2023.

While GTCO Nigeria still accounted for over 79 percent of group profit, the rising importance of both foreign and non-banking arms suggests gradual but strategic business evolution.

First Holdco

First Holdco generated N219.03 billion in pre-tax profit from its foreign subsidiaries, representing 27.5 percent of its N796.47 billion group profit.

The bank’s global reach includes six African subsidiaries, the UK, and representative offices in China and France.

Although it did not break down profit by country, the sizeable offshore contribution reflects meaningful international engagement and operational maturity.

First Holdco’s gradual but consistent expansion aligns with a measured growth strategy aimed at bolstering resilience without overreliance on volatile domestic earnings.

Zenith Bank

Zenith Bank posted N187 billion in pre-tax profit from its four foreign subsidiaries in Ghana, Sierra Leone, Gambia, and the UK.

This accounted for 14 percent of the bank’s total pre-tax profit of N1.327 trillion, down from 16.5 percent in 2023.

Despite having fewer offshore units compared to its peers, Zenith’s foreign subsidiaries performed strongly, led by Zenith Bank UK (N84.1 billion) and Zenith Bank Ghana (N82 billion).

These figures underscore the profitability of focused international operations, even if overall group exposure remains lower.

Still, Zenith Nigeria generated N1.133 trillion, or 84 percent of the group’s earnings, reaffirming the bank’s firm reliance on its robust domestic franchise.

Strategic Insights, Forward Outlook

The sharp rise in profitability from foreign subsidiaries across FUGAZ banks validates the long-term regional expansion strategies adopted over the past two decades.

As these markets mature, their contribution to group-level performance will likely increase, providing a natural hedge against Nigeria’s macroeconomic and regulatory shocks.

Foreign subsidiaries also offer exposure to harder currencies, more stable inflation environments, and lesser regulatory burdens in some jurisdictions.

Moreover, they provide a platform for scalable digital innovation, access to trade finance opportunities, and pan-African synergies.

However, continued success hinges on: Robust risk management across diverse regulatory environments. Navigating geopolitical risks in fragile African markets. Adapting to currency and liquidity pressures outside Nigeria.

Balancing capital allocation between high-return domestic operations and long-term international investments.

From National Leaders to Pan-African Powerhouses

As Nigerian banks deepen their presence across the continent and beyond, their ability to extract value from foreign markets while maintaining local dominance will define the next era of competition.

The era of the Nigerian bank as a continental financial giant is no longer a vision—it is fast becoming a reality.