Nigerian Banks Show Strong Capital Adequacy Ratios for 2025

Nigerian banks have demonstrated strong capital positions as the average Capital Adequacy Ratio (CAR) for the industry remains above regulatory requirements for the 2025 financial year. Guaranty Trust Holding Company Plc (GTCO) reported a CAR of 43.82%, significantly above the regulatory minimum of 15%.

Despite a decline in CAR for some Tier 1 banks, GTCO's ratio is 2,800 basis points above the minimum. Wema Bank Plc reported the highest CAR at 28.05%, exceeding the Central Bank of Nigeria's (CBN) requirement of 10%.

The industry’s liquidity ratio stood at 63.38%, above the prudent threshold of 30%. Although GTCO's CAR is robust, the first holdco reported a CAR below the regulatory threshold at 8.21%.

The group plans a capital remediation strategy, including a capital injection of N200 billion and a multi-tranche capital raising program of N253.099 billion to enhance its capital position. Zenith Bank Plc and Bank Africa Plc also reported CARs of 25.30% and 23.20%, respectively, for 2025.