Banks on a Treasure Hunt! Access, Zenith & Others Grow Investment Securities to ₦41.7 Trillion
– Are They Still Lending or Just Playing It Safe?
In a move that highlights a major shift in strategy, eight leading Nigerian banks have increased their investment securities to a combined ₦41.78 trillion in Q1 2025 — up from ₦41.10 trillion at the end of 2024.
These banks include UBA, Zenith Bank, Access Holdings, GTCO, Ecobank, First HoldCo, FCMB Group, and Wema Bank. Rather than focusing heavily on lending, they’ve opted to grow their portfolios in treasury bills, bonds, and commercial papers — assets seen as safer and more profitable.
Breakdown of the Investment Surge:
• UBA led the pack with ₦13.13tn in securities
• Ecobank followed with ₦11.01tn
• Zenith Bank stood at ₦5.11tn
• GTCO climbed to ₦4.62tn
• Wema Bank hit ₦1.05tn
• First HoldCo dropped slightly to ₦5.68tn
• Access Holdings dipped to ₦10.79bn
• FCMB Group held ₦1.18tn
What’s Behind the Shift?
Experts say the banks are chasing safe, guaranteed returns in a high-interest economy rather than risking defaults from business loans.
“Banks are clearly choosing profits over purpose,” said economist Vincent Nwani. “They’re putting your deposits into treasury instruments instead of lending to businesses.”
Proshare’s Chief Economist, Teslim Shitta-Bey, added, “Government bonds are offering high coupon rates with virtually no risk — who wouldn’t prefer that over risky private sector lending?”
What This Means for You
1. Don’t let your money sleep — Banks are earning from your deposits; you should consider investing too.
2. Private sector lending may slow down, potentially affecting SMEs and economic expansion.
3. Investors should monitor banks’ balance sheet strategies — they may signal where the safest profits lie.
Conclusion:
As banks bulk up on low-risk investment securities, Nigeria’s financial institutions are signaling a cautious stance — more about preservation than risk. The big question remains: Who will fund the real economy if banks play it safe?
Stay informed. Stay ahead. Your money deserves it.
– Are They Still Lending or Just Playing It Safe?
In a move that highlights a major shift in strategy, eight leading Nigerian banks have increased their investment securities to a combined ₦41.78 trillion in Q1 2025 — up from ₦41.10 trillion at the end of 2024.
These banks include UBA, Zenith Bank, Access Holdings, GTCO, Ecobank, First HoldCo, FCMB Group, and Wema Bank. Rather than focusing heavily on lending, they’ve opted to grow their portfolios in treasury bills, bonds, and commercial papers — assets seen as safer and more profitable.
Breakdown of the Investment Surge:
• UBA led the pack with ₦13.13tn in securities
• Ecobank followed with ₦11.01tn
• Zenith Bank stood at ₦5.11tn
• GTCO climbed to ₦4.62tn
• Wema Bank hit ₦1.05tn
• First HoldCo dropped slightly to ₦5.68tn
• Access Holdings dipped to ₦10.79bn
• FCMB Group held ₦1.18tn
What’s Behind the Shift?
Experts say the banks are chasing safe, guaranteed returns in a high-interest economy rather than risking defaults from business loans.
“Banks are clearly choosing profits over purpose,” said economist Vincent Nwani. “They’re putting your deposits into treasury instruments instead of lending to businesses.”
Proshare’s Chief Economist, Teslim Shitta-Bey, added, “Government bonds are offering high coupon rates with virtually no risk — who wouldn’t prefer that over risky private sector lending?”
What This Means for You
1. Don’t let your money sleep — Banks are earning from your deposits; you should consider investing too.
2. Private sector lending may slow down, potentially affecting SMEs and economic expansion.
3. Investors should monitor banks’ balance sheet strategies — they may signal where the safest profits lie.
Conclusion:
As banks bulk up on low-risk investment securities, Nigeria’s financial institutions are signaling a cautious stance — more about preservation than risk. The big question remains: Who will fund the real economy if banks play it safe?
Stay informed. Stay ahead. Your money deserves it.
