Zenith Bank, Guaranty Trust Holding Company (GTCO), and FirstHoldCo recorded a combined 43.03% year-on-year increase in interest income from Treasury bills in 2025, earning N2.85 trillion from the short-term government debt instruments, up from N1.99 trillion in 2024. This surge reflects a strategic shift by these banks toward low-risk government securities amid prevailing market conditions.
Breakdown by bank:
• Zenith Bank posted the largest proportional increase in Treasury bill income, rising 94.76% to N1.13 trillion in 2025 from N579.92 billion in 2024. Interest from loans and advances also grew, but at a lower 20.15%, reaching N1.82 trillion.
Treasury bills accounted for 30.75% of its total interest income.
• GTCO saw a 34.85% increase in Treasury bill income to N758.74 billion, while loans and advances interest rose 9.85% to N559.40 billion. Treasury bills made up 45.90% of its total interest income.
• FirstHoldCo recorded a 13.16% increase in Treasury bill income to N962.39 billion and a 29.38% rise in interest from loans and advances to N2.00 trillion. Treasury bills contributed 32.47% of its total interest income, with loans and advances remaining the dominant source.
Context:
The overall growth in interest income was driven by both Treasury bills and loans and advances, with the former showing stronger growth rates.
The trend highlights increased reliance on government securities as banks risk and returns in a high-yield environment.
Source: Nairametrics
