Retail banking continues to be a key battleground for Nigerian banks as competition intensifies for low-cost deposits.
In 2024, nine of Nigeria’s leading banks recorded a combined retail deposit of N47.05 trillion, representing a 46.35% year-on-year growth.
Zenith Bank, UBA, and First Bank Holdings led the pack, collectively holding over N26 trillion of the combined retail deposits.
Retail deposits accounted for 43% of the total N109.33 trillion in customer deposits across these banks, which in turn made up 64.5% of their combined total assets.
Total assets across the nine banks surged to N169.48 trillion, up 51% year-on-year, reflecting aggressive balance sheet expansion despite tightening liquidity.
However, this growth has come at a cost. Interest expenses on customer deposits grew by 99% YoY to N3.562 trillion from N1.788 trillion in 2023.
Meanwhile, a sizable N22.494 trillion remains sterilized with the Central Bank of Nigeria (CBN) as Cash Reserve Requirement (CRR).
From Wema Bank to Zenith Bank, here is how Nigeria’s top retail banks ranked in 2024:
9 – Wema Bank
Wema Bank ranks 9th among the banks under review with the largest retail deposits as of the end of the financial year.
The bank reported N786.75 billion in retail deposits, representing a 55.88% year-on-year growth from N504.70 billion in 2023.
Retail deposits accounted for 31% of Wema’s total customer deposits in 2024. Total customer deposits rose by 36% YoY to N2.53 trillion, making up 70% of the bank’s balance sheet.
Consequently, interest expenses climbed by 28% YoY to N103.42 billion. However, the bank’s cost of funds declined by 1.29% to 6.12%, indicating more efficient liability management and a possible shift toward cheaper, stable retail deposits.
8 – Stanbic IBTC
Stanbic IBTC ranks 8th among listed banks with the largest retail deposits in 2024. The bank’s retail deposits stood at N814.06 billion, reflecting a 55% year-on-year growth from the 2023 levels. Retail deposits accounted for 27% of the bank’s total customer deposits, which grew to N3.01 trillion in 2024.
Customer deposits remained central to the bank’s funding structure, contributing 44% to the group’s total assets.
However, N720.5 billion of these deposits are sterilized with the Central Bank of Nigeria (CBN) as cash reserve requirement (CRR), reducing the bank’s ability to deploy a portion of its funds into interest-earning assets.
Interest expense on customer deposits stood at N84.81 billion, while its cost of funds remained relatively low at 4.5%,
7- FCMB
First City Monument Bank (FCMB) takes the 7th spot with retail deposits of N3.1 trillion as of 2024, representing a 33% year-on-year growth from the 2023 figure.
Retail deposits made up a dominant 72% of the bank’s total customer deposits, which stood at N4.3 trillion in 2024. By the end of Q1 2025, the retail loan had increased to N4.125 trillion
Customer deposits remained a major funding pillar, accounting for 61% of the group’s total assets.
However, like many of its peers, FCMB had a sizeable portion of N1.24 trillion sterilized with the Central Bank of Nigeria (CBN) as cash reserve requirement (CRR).
The bank paid out N254.38 billion in interest expenses on customer deposits.
6- GTCO
Guaranty Trust Holding Company Plc (GTCO) secured the 6th spot on the list, with retail deposits totaling N5.2 trillion in 2024.
This accounted for 52% of the group’s total customer deposits, which stood at N10 trillion for the year.
Customer deposits remain a core part of GTCO’s funding structure, contributing 68% to the group’s total assets.
However, a significant portion, N1.96 trillion, was held with the Central Bank of Nigeria (CBN) as cash reserve requirement (CRR).
5.- Fidelity Bank
Fidelity Bank ranked 5th with a retail deposit of N5.5 trillion, representing a 40.6% year-on-year growth compared to 2023.
Retail deposits accounted for 92.6% of the bank’s total customer deposits, which rose by 47.9% to N5.94 trillion in 2024, equivalent to 63.7% of its total assets.
The total customer deposits comprise both foreign currency (FCY) and local currency (LCY) components.
FCY deposits increased by $416 million (28.8%) to $1.9 billion, representing 48.6% of total deposits, up from 34.3% in 2023. Meanwhile, LCY deposits rose by 15.7% to N3.1 trillion, highlighting a balanced growth across both currency segments.
According to the bank, this strong base of low-cost deposits helped moderate funding costs despite elevated yields during the year.
4- Access Holdings
Access Holdings ranked 4th with retail deposits of N5.57 trillion in 2024, up from N4.53 trillion in 2023 reflecting a 22.83% year-on-year growth.
However, retail deposits accounted for a relatively small portion of the group’s total deposit base, just 0.02% in 2024, down from 0.03% in 2023.
The bank’s total customer deposits surged by 47% YoY to N22.52 trillion, accounting for 54.28% of the group’s total assets.
A key feature of Access Holdings’ deposit base is its heavy skew toward foreign currency (FCY) deposits, which rose 140% YoY to N17.85 trillion, making up approximately 79% of the total deposit base.
In contrast, local currency (LCY) deposits declined from N7.87 trillion in 2023 to N4.67 trillion in 2024.
In terms of cost structure, the group incurred N2.21 trillion in total interest expenses, of which N992.30 billion (about 44.85%) came from customer deposits; a 96.27% increase YoY.
Despite the rise in absolute costs, the cost of funds improved significantly, dropping to 4.90% in 2024 from 7.7% in 2023.
3 – FirstHoldco
First Bank Holdings (FirstHoldco) ranks 3rd with retail deposits rising sharply by 72.7% year-on-year to N7.0 trillion in 2024.
The bank attributes this robust growth to a stronger core deposit profile, reflecting heightened customer loyalty and increased engagement.
Retail deposits made up 41% of total customer deposits, which stood at N17.17 trillion, a 61% increase from the previous year. Customer deposits played a pivotal role in the group’s funding structure, accounting for 65% of its total assets.
2 – UBA
United Bank for Africa (UBA) secured the 2nd position with retail deposits totaling N8.49 trillion in 2024, representing 59% year-on-year growth.
Retail deposits accounted for 38.79% of the bank’s N21.90 trillion total customer deposits.
Customer deposits remain a critical component of UBA’s funding strategy, contributing 57% to the group’s total balance sheet size.
In terms of cost, the group incurred N456.61 billion in interest expenses on customer deposits, which represented 54% of its total interest expenses for the year.
1 – Zenith Bank
Zenith Bank emerged as the retail king in 2024 with retail deposits hitting N10.56 trillion, reflecting a 50% year-on-year growth.
Retail deposits accounted for 48% of the bank’s total customer deposits, which stood at N21.96 trillion, and made up 73% of the group’s total assets of N30.32 trillion.
However, a significant portion of N5.24 trillion is held by the Central Bank of Nigeria (CBN) as cash reserve requirement (CRR), limiting the bank’s ability to fully deploy these funds for income-generating activities.
Zenith Bank paid the second-highest interest expense on customer deposits of N622 billion, behind Access Holdings, N992 billion in 2024. Cost of funds inched up to 4.8%, compared to 3%, though lower than its internal guidance of 5%.
