Nigerian Banks Post Record Profits but Lag in Brand Growth

AFRICAN STOCKS AND FINANCEMay 13, 2025 at 10:31 AM UTC

TLDR

Nigeria’s top banks recorded record earnings in 2024 but trailed their African peers in brand equity growth, according to the 2025 African Banking report
Despite earning ₦4.14 trillion ($2.58 billion), the combined brand value of Access Bank, GTCO, Zenith Bank, UBA, and First Bank rose only 5.37% to $1.57 billion
Zenith Bank and UBA were the only two Nigerian banks on the top 22 list to experience a decline in brand value, down 16% and 26%, respectively

Nigeria’s top banks recorded record earnings in 2024 but trailed their African peers in brand equity growth, according to the 2025 African Banking report by Brand Finance. Despite earning ₦4.14 trillion ($2.58 billion), the combined brand value of Access Bank, GTCO, Zenith Bank, UBA, and First Bank rose only 5.37% to $1.57 billion.

By contrast, banks in Kenya and South Africa posted double-digit brand equity growth—25.1% and 23.6% respectively—driven by stronger digital innovation and customer trust. Egypt's banking sector also outpaced Nigeria, with 8.03% growth in brand value.

Zenith Bank and UBA were the only two Nigerian banks on the top 22 list to experience a decline in brand value, down 16% and 26%, respectively. In contrast, GTCO, First Bank, and Access Bank saw modest increases of 31.6%, 25.4%, and 17.8%. While Nigerian banks spent ₦268.7 billion ($171.5 million) on IT upgrades in 2024—up 74.5% year-on-year—analysts say these investments have not yet translated into deeper financial inclusion or stronger brand loyalty.

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Key Takeaways

Nigeria’s traditional banks may be financially strong, but they are struggling to build emotional and digital resonance with customers, especially in underserved regions. By 2023, 37% of rural Nigerians remained outside the formal banking system, highlighting a persistent inclusion gap despite increased agent banking networks. Fintechs and digital-first challengers have capitalized on this gap. A 2024 KPMG survey found fintechs outperform traditional banks in customer satisfaction across key service metrics. While banks expanded agent networks and IT systems, their offerings still skew toward urban, salaried customers. By contrast, Kenyan banks like Equity Bank and KCB have integrated with mobile platforms like M-Pesa to offer credit, insurance, and savings to rural and informal users. South Africa’s Capitec and TymeBank have built trust through digital-only models and AI-driven engagement. In Egypt, state-led reforms and upcoming digital-only banks have accelerated digital adoption.

Finance

Financial Services

Banking

Nigeria

Access Bank

Zenith Bank

UBA

GTCO

First Bank