S&P Global Ratings has upgraded the long-term global-scale credit ratings of major Nigerian lenders including UBA, Zenith Bank, Access Bank, GTBank and Stanbic IBTC following Nigeria’s sovereign rating upgrade, citing improving macroeconomic conditions, stronger foreign exchange stability and resilient banking sector profitability.
The global ratings agency raised the long-term ratings of Access Bank, Bank of Industry, GTBank, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, United Bank for Africa (UBA) and Zenith Bank to “B” from “B-” with stable outlooks. S&P also upgraded national-scale ratings for nine financial institutions and revised the outlooks for Fidelity Bank and FCMB from stable to positive.
According to S&P, Nigerian banks continue to benefit from elevated interest margins, solid net interest income and easing loan-loss provisions despite expectations that profitability may moderate slightly in 2026.
The agency projected average return on equity for Nigerian lenders to decline modestly to between 20 percent and 23 percent in 2026 from around 25 percent in 2025. Return on assets is also expected to remain relatively stable at about 3.0 percent to 3.1 percent.
S&P noted that the stronger earnings performance reflects banks’ ability to navigate inflationary pressures and currency volatility while maintaining healthy balance sheets.
The report highlighted that most Nigerian banks have now complied with the Central Bank of Nigeria’s recapitalisation requirements following successful capital raising exercises over the past two years.
According to S&P, the fresh capital injections have significantly improved sector-wide capitalization and enhanced banks’ resilience against economic shocks. However, the agency cautioned that a few lenders may still need to strengthen their solvency positions further.
S&P said Access Bank’s extensive domestic operations and growing African footprint continue to support its credit profile, while the reduction in exposure to higher-risk markets has helped improve asset quality.
Zenith Bank earned positive recognition for its operational efficiency, strong profitability and successful 2025 capital raise, alongside a relatively stable non-performing loan ratio.
UBA’s rating upgrade was driven by its broad regional diversification strategy and its position as one of Nigeria’s leading banking institutions.
GTBank also received favourable assessment due to stronger capitalization levels and proactive efforts to clean up regulatory forbearance exposures.
Stanbic IBTC’s ratings continue to benefit from its strategic relationship with Standard Bank Group, while Standard Chartered Bank Nigeria’s upgrade mainly reflects the broader sovereign rating improvement.
S&P maintained a stable outlook on Nigeria’s banking sector industry risk trend but upgraded the economic risk trend to positive, citing improved macroeconomic conditions, exchange rate stability and ongoing economic reforms.
The agency said these developments are expected to gradually reduce credit risks and strengthen resilience across Nigeria’s financial system.
Although Nigeria remains within the highest-risk category in S&P’s Banking Industry Country Risk Assessment framework, the latest report signals growing confidence that pressures on the banking system may ease following recent reforms and improving economic conditions.
