Proshare’s 2025 Tier 1 Banks Report: ETI leads in banking performance metrics

ECOBANK Transnational Incorporated (ETI) has emerged as the top-ranked bank in Nigeria’s 2025 Tier 1 Banks Report released by Proshare, Nigeria’s premier financial information service platform.

Despite not being fully Nigerian-owned, ETI stood out across several key performance indicators, reflecting strong financial health, operational efficiency, and regional strength, particularly from its operations across francophone and some anglophone West African countries.

The report, titled “Getting Bigger, Braver, and Dominant – The Class of 2025,” highlighted the evolving nature of Nigeria’s banking industry amid ongoing reforms, recapitalisation efforts, and digital transformation. Proshare argue that Nigeria’s Tier 1 banks are becoming larger and more complex and must now demonstrate agility, innovation, and strategic flexibility to support the Federal Government’s goal of scaling Nigeria into a $1 trillion economy by 2030.

ETI ranked highest on the Proshare Bank Strength Index (PBSI)—a data-driven framework used to evaluate banks based on capital adequacy, asset quality, digital capabilities, profitability, and governance. ETI’s remarkable 67.11 per cent asset growth played a pivotal role in boosting its standing, outpacing peers and dethroning traditional Nigerian leaders such as Access Holdings (AccessCorp), Zenith Bank, and Guaranty Trust Holding Company (GTCO).

The report noted that while ETI’s Nigerian operations benefitted from the strength of its pan-African parent company, this is a common trait among other Tier 1 banks as well, many of which leverage group-wide holdings and regional footprints.

Other banks that made the Tier 1 list for 2025 include AccessCorp at second position, Zenith, FirstHoldCo (First Bank Holdings), UBA, and GTCO.

The PBSI emphasised a shift from traditional size-based definitions of Tier 1 status. Instead, it focuses on resilience, risk management, and adaptability. “It is no longer solely about who has the deepest pockets or the most expansive reach,” the report explains. “Today’s top banks are those that combine financial strength with an unshakable grip on risk and innovation.”

The rankings reflected banks’ preparedness for the regulatory capital increase mandated by the Central Bank of Nigeria (CBN), which requires N500 billion in Common Equity Tier 1 Capital for international banks, and N200 billion for nationally licensed institutions. All current Tier 1 banks fall under the international category, and most have made significant progress toward meeting these targets.

Notably, Fidelity Bank, a top Tier 2 bank, was on the verge of joining the Tier 1 league. Despite recent setbacks—including a Supreme Court judgment—Fidelity is expected to meet the N500 billion threshold by the end of the 2025 financial year. Proshare suggests that a well-structured cash flow management plan could help the bank maintain its financial stability as it expands its footprint in the continental banking arena.

The report also outlined a bold roadmap for banking sector growth aligned with Nigeria’s economic transformation goals. To this end, Proshare proposes breaking down Nigeria’s 46 broad economic sectors into 14 “sub-economies” where banks should concentrate their medium- to long-term lending efforts. These include: The Marine and Blue Economy; Entertainment and Creative Arts; Hospitality and Real Estate as well as Mineral Mining and Energy.

With recapitalised balance sheets, banks are expected to shift from short-term consumer lending to more structured financing of growth-driven sectors.

Proshare highlights digital transformation as a decisive frontier in the battle for customer dominance. Tier 1 banks, armed with massive technology budgets, are rapidly digitising products and services. However, their ability to stay relevant depends on their willingness to embrace “co-opetition”—a collaboration with fintechs despite being direct competitors.

Fintechs offer user-friendly front-end experiences, while banks retain robust back-end infrastructures needed for secure lending. However, the line between bank-owned customers and fintech clients is increasingly blurred. The future of banking, the report argues, will be defined by who controls the customer experience and who better analyses data for risk and service delivery.

According to the report, Artificial Intelligence (AI) will be at the heart of this transformation, replacing traditional decision-making processes with data-driven algorithms. Loan approvals, for instance, may soon rely on real-time assessments of a customer’s cash-to-cash cycle using encrypted financial histories, eliminating human bias and streamlining credit decisions.

The report also sheds light on unlisted banks that, though smaller, showed impressive growth in 2024. Standard Chartered Bank, Providus Bank, Globus Bank, Premium Trust Bank, and Optimus Bank recorded asset growth surpassing the average 54 percent growth of the Tier 1 banks. Their capital adequacy ratios exceeded regulatory thresholds, and many posted strong pre-tax profit increases—ranging from double to triple digits.

Despite not being publicly listed, these banks demonstrated commendable corporate governance and resilience, reinforcing the idea that listing is not a guarantee of superior performance or ethical conduct. A ticker symbol alone is insufficient, the report warns, to ensure adherence to global standards.

With Nigeria’s banking sector entering a period of consolidation and digital acceleration, the 2025 PBSI provides a timely benchmark. The top-performing banks are not only stronger in financial terms but are also more adaptable to change. Their challenge now lies in balancing size with speed, capital with creativity, and reaches with relevance.

As banking evolves into a seamless digital utility, the winners will be those institutions that understand their customers, deploy technology effectively, and integrate seamlessly into Nigeria’s vision for a robust and inclusive economy.

The Tier 1 2025 report is not just a reflection of past performance; it is a forecast of the banks best equipped to navigate the complex and fast-changing landscape of modern finance.

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