By Adedapo Adesanya

Top Nigerian financial institution, Access Bank Plc, will reduce its equity stakes in some of its foreign subsidiaries to comply with new rules from the Central Bank of Nigeria (CBN) limiting external investments by local banks.

This was disclosed by Access Bank’s chief executive, Mr Roosevelt Ogbonna, on an investor call in Lagos on Tuesday.

The CBN has ordered banks to limit equity investments in foreign subsidiaries to no more than 10 per cent of total shareholders’ funds. This is to help contain risk and preserve capital, which are fundamental to long-term financial system stability.

Mr Ogbonna said Access Bank, which has operations in over 20 countries, has 12 months to comply.

“We are looking at divestments” to bring down our equity stake, from a current level of 19.4 per cent, the CEO said. “We will still be the controller of those banking entities, and the value creation will continue to be strong,” he said.

Nigerian banks began expanding aggressively across the continent after the country’s 2016 recession, seeking to mitigate risks from currency devaluation, rising non-performing loans, and to diversify income streams.

Access Bank has been at the forefront of that push, acquiring assets from financial groups including Standard Chartered Plc, Atlas Mara Ltd. and KCB Group Plc, helping it build a significant footprint across Africa’s banking industry.

In recent years, other Nigerian banks have boosted their external footprint, including Zenith Bank, UBA, and Guaranty Trust Holding Company (GTCO), among others.

Last year, Access Bank signalled a pause in acquisitions to focus on expanding its existing operations.

Mr Ogbonna also said the lender is considering refinancing a $500 million Eurobond due in September, not due to liquidity pressures, but to extend the maturity profile of its debt.

The executive said a final approval on that refinancing, as well as on a $500 million perpetual bond due in October, is expected this month.

Business Post reports that Access Holdings grew its 2025 financial year pre-tax profit by 16.2 per cent to N1.01 trillion while net interest income rose to N1.36 trillion, net fees and commission income recorded a particularly strong growth of 40.9 per cent to N585.1 billion, reflecting increasing diversification in revenue streams, and overall operating income after impairment grew by 23.9 per cent to N3.17 trillion.

At the same time, the firm improved its cost discipline, with its cost-to-income ratio declining to 51.7 per cent from 56.7 per cent in 2024. Returns also remained solid, with return on average equity at 18.4 per cent and return on average assets at 1.6 per cent, reinforcing the quality of earnings delivered during the year.

By Aduragbemi Omiyale

Despite the challenging operating environment and tightening monetary policy stance, Zenith Bank Plc improved its gross earnings in the first quarter of 2026 by 6 per cent to N1.01 trillion from N950 billion in the corresponding period of 2025.

In the unaudited financial statements of the lender for the period ended March 31, it was revealed that the growth was driven by an increase in interest income and non-interest income.

In the results submitted to the Nigerian Exchange (NGX) Limited on Thursday, April 30, 2026, it was disclosed that the rise in interest income was primarily due to the expansion of the bank’s risk asset portfolio, supported by disciplined, risk-adjusted pricing.

It was observed that interest expense moderated by 5 per cent year-on-year in Q1 2026, underscored by a continued optimisation of the lender’s deposit mix and funding structure. This resulted in a 7 per cent growth in net interest income to N634 billion from N591 billion in Q1 2025.

Non-interest income also improved 19 per cent year on year to N106 billion from N89 billion, highlighting an improvement in fees and commissions and higher contributions from other operating income streams.

This performance reflects stronger customer activity and deeper transaction volumes across key business channels.

As a result, the profit before tax went up by 3 per cent year to N361 billion from N351 billion, and the profit after tax marginally increased by 1 per cent to N314 billion.

Profitability was further supported by a decline in cost of funds to 3.76 per cent in Q1 2026 from 3.90 per cent in Q1 2025; while cost of risk moderated to 2 per cent in Q1 2026, reflecting a prudent and proactive risk management stance in an elevated yield environment.

Gross loans increased by 9 per cent from N11.06 trillion as at full year 2025 to N12.04 trillion in Q1 2026, reflecting the continued commitment to carefully deploying credit into high-growth sectors of the economy that enhance portfolio returns.

Asset quality strengthened as the Non-Performing Loan (NPL) ratio eased to 3.79 per cent, from 3.82 per cent reported in December 2025, underpinned by disciplined credit risk management. Customer deposits rose to N24.47 trillion in Q1 2026, while total assets increased by 2 per cent to N32.01 trillion over the same period.

Return on Average Equity (ROAE) and Return on Average Assets (ROAA) stood at 24.9 per cent and 4 per cent, respectively, supported by strong top-line earnings and enhanced balance sheet efficiency.

Net interest margin (NIM) strengthened to 12.5 per cent, up from 10.3 per cent in Q1 2025, underscoring the Group’s ability to preserve its margins and deliver improved shareholder returns. Prudential ratios remained strong and comfortably above regulatory requirements.

The Group’s Capital Adequacy Ratio (CAR) and Liquidity Ratio stood at 23.5 per cent and 71 per cent, respectively, while the coverage ratio remained strong at 169 per cent, reinforcing the Bank’s resilient capital and liquidity position.

Its performance underscores its continued focus on sustaining high-quality earnings growth, further strengthening asset quality, and deepening customer engagement through continued digital innovation. The Bank remains firmly committed to delivering sustainable growth anchored on sound corporate governance, prudent risk oversight, and disciplined capital allocation.

By Aduragbemi Omiyale

After 12 years on the board as a non-executive director, Mr Jim Ovia has retired as the chairman of Zenith Bank Plc, paving the way for Mr Mustafa Bello to take over.

Mr Ovia established Zenith Bank in 1990 and became its chief executive before retiring in 2010, and handing over to Mr Godwin Emefiele. He was appointed as the head of the board as a non-executive director in 2014 until his retirement.

At a board meeting held on April 27, 2026, the appointment of Mr Bello as the new chairman was approved to ensure continuity.

According to the statement, Bello, an engineer who joined the board on December 29, 2017, is currently the bank’s longest-serving director.

At the Annual General Meeting (AGM) of the lender in Lagos on Tuesday, Mr Ovia announced his retirement after completing the mandatory 12 years, and in compliance with the corporate governance guidelines of the Central Bank of Nigeria (CBN).

During his tenure as chairman, Mr Ovia gave direction to the financial institution and ensured strong leadership, strategic direction, and effective board oversight.

“The board expresses its deep appreciation to Mr Jim Ovia for his outstanding service and invaluable contributions.

“His visionary leadership, unwavering commitment to good governance, and dedication to stakeholder value creation significantly strengthened the group’s strategic positioning and reputation during his tenure.

“He has extensive leadership experience at board and executive levels, a strong understanding of corporate governance principles and regulatory expectations and a proven track record in strategic oversight and organisational growth. He has also demonstrated integrity, independence, and sound judgment,” the lender said.