Nigeria’s leading banks, Access Holdings Plc and United Bank for Africa Plc (UBA), are under scrutiny for their international operations. Investors are assessing whether their extensive overseas franchises can provide a sustainable advantage over competitors with more concentrated Nigerian earnings, such as GTCO and Zenith Bank. The key factors are earnings quality, asset quality, capital efficiency, and management’s ability to meet regulatory rules without sacrificing profitable international businesses.
Naira Devaluation and Foreign Assets
The sharp drop in the value of the naira in 2023 and 2024 significantly increased the naira value of foreign assets and earnings held by Nigerian banking groups. Fitch Ratings highlighted this in its September 2026 analysis of African banking groups. For banks that bought foreign subsidiaries when the naira was stronger, this has major economic implications. Their original naira investments may now control foreign-currency assets and earnings streams whose naira value has greatly increased. This does not mean an actual accounting gain or cash for dividends, but it supports evaluating the returns on these investments.
The same currency movement can also raise the naira value of qualifying foreign investments compared to shareholders’ funds, creating regulatory hurdles even without further acquisitions. This presents a paradox: naira depreciation can boost the naira value of foreign earnings while complicating compliance with investment limits.
Access Holdings: Steps Toward Compliance
Access Holdings exemplifies the conflict between growing foreign earnings and adhering to regulatory constraints. The company disclosed that its foreign investments account for roughly 19.3 percent of its portfolio, surpassing the 10 percent threshold set by Section 19(8)(c) of the Banks and Other Financial Institutions Act (BOFIA). Additionally, the group has tied its dividend restrictions for FY2025 to unresolved regulatory issues.
Access has progressed beyond merely acknowledging the problem. In July 2026, Access Bank divested a 7.44 percent stake in its Ghanaian subsidiary, transferring 12,085,318 shares to a broader investor base. This reduced its ownership from 93.40 percent to approximately 85.96 percent, while maintaining control. The transaction secured regulatory approvals, including a no-objection from Ghana’s central bank.
This is a concrete step toward capital optimization and regulatory remediation. It shows Access can reduce its stake in a foreign subsidiary without giving up the market or operational control. The sale alone does not prove the overall foreign-investment limit has been met. Further steps may be needed, and the transaction price was not disclosed. Still, it shows visible progress.
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The rationale for retaining profitable international operations is compelling. According to Fitch, Access’s foreign subsidiaries contributed nearly 48 percent of the group’s net income in 2025, up from 30 percent in 2021. By the end of 2025, foreign operations constituted 51 percent of the group’s assets. In Q1 2026, Access Bank UK reported a post-tax profit of ₦83.8 billion, surpassing the ₦52 billion generated by its Nigerian operations.
UBA: An International Earnings Powerhouse
UBA’s foreign operations play an even larger role in its earnings. Fitch reported that foreign subsidiaries accounted for approximately 77 percent of the group’s net income in 2025, a significant increase from 44 percent in 2024. These operations also represented 52 percent of total assets.
This provides substantial geographic diversification for UBA. Fitch noted the 2025 earnings contribution was amplified by weaker domestic performance. A preliminary examination of UBA’s FY2025 audited parent-bank accounts is useful. It suggests foreign-subsidiary investments of approximately ₦258.56 billion. This is against parent-bank shareholders’ equity of approximately ₦2.223 trillion.
Access and UBA Compared to GTCO and Zenith
The comparison isn’t solely between international and domestic banks. Both GTCO and Zenith maintain foreign operations and robust earnings. The key difference lies in the relative impact of overseas businesses and the extent to which each group can diversify beyond Nigeria.
For 2025, Nairametrics reported foreign-subsidiary profit-before-tax (PBT) figures. UBA’s foreign-subsidiary PBT was ₦671.1 billion. Access Holdings’ was ₦571.3 billion. GTCO’s was ₦375.3 billion. Zenith Bank’s was ₦331.8 billion. These figures highlight the scale of the foreign earnings engines at Access and UBA.
Access has taken a concrete step toward compliance by reducing its stake in its Ghanaian subsidiary while retaining control. UBA’s extensive international earnings also warrant scrutiny, though its exact foreign-investment exposure remains unclear. The critical question is which group can achieve sustainable profits alongside effective capital allocation.
