Foreign subsidiaries are contributing massively to the growth of many financial brands in the money market. With increased shares in earnings and assets in major Nigerian banking groups, the market has seen many lenders expanding their operations across African and international markets, Fitch Ratings has said.
The rating agency disclosed this in its latest report, African Banking Groups’ Cross-Border Expansion to Continue, published on September 14, 2026.
The report examined 14 African banking groups with operations in at least five African countries and consolidated assets of more than $15 billion as of the end of 2025. Four Nigerian lenders, Access Bank Plc, United Bank for Africa (UBA) Plc, Zenith Bank Plc and First HoldCo Plc, were among the institutions reviewed.
Fitch said the contribution of foreign subsidiaries to African banking groups has risen steadily over the past decade, with the pace increasing after the COVID-19 pandemic as banks pursued acquisitions and geographic diversification.
For Nigerian lenders, the agency said the 70% depreciation of the naira between 2023 and 2024 also contributed to the increased weight of foreign operations within their groups.
UBA recorded a sharp increase in the contribution of its foreign subsidiaries, which accounted for 77% of the group’s net income in 2025, compared with 44% in 2024. Its foreign operations also represented 52% of total assets at the end of 2025.
Fitch noted that the increase in UBA’s foreign earnings contribution was partly due to weaker domestic performance during the year.
Access Bank recorded a similar expansion. Its foreign subsidiaries contributed 48% of group net income in 2025, compared with 30% in 2021, while their share of total assets rose from 23% to 51% over the same period.
The rating agency identified Access Bank as the African lender with the fastest pace of cross-border expansion in recent years, driven by a series of acquisitions across the continent.
In July 2025, the bank completed the acquisition of a 76% stake in Mauritius-based AfrAsia Bank Limited. AfrAsia had a balance sheet of $6.9 billion at the end of 2025, equivalent to about 19% of Access Bank’s consolidated assets.
Fitch also disclosed that Access Bank had recently breached a regulatory limit restricting investments in foreign subsidiaries to 10% of shareholders’ funds. The development has affected dividend payments, with the bank expected to restore compliance through measures including reducing its shareholding in some overseas subsidiaries.
Zenith Bank is also expanding its international footprint. The bank completed the acquisition of Kenya’s Paramount Bank in April 2026 and launched a subsidiary in Côte d’Ivoire as part of efforts to deepen its presence in Francophone West Africa.
Its foreign operations generated N331.7 billion in pre-tax profit in 2025, representing 26.3% of group earnings, up from N179 billion and 13.5% in 2024.
Deposits across Zenith Bank’s subsidiaries in Ghana, the United Kingdom, Sierra Leone and The Gambia also increased to N6.7 trillion in 2025. This represented 27.8% of the group’s total deposits, compared with N5.3 trillion, or 24.2%, a year earlier.
Zenith Bank UK accounted for the largest share of those deposits at N3.6 trillion.
Fitch said the significant capital raised by Nigerian banks over the past two years could provide further support for international expansion.
The banks raised capital to meet higher paid-in capital requirements that took effect at the end of the first quarter of 2026.
While some of the funds were used to absorb losses following the withdrawal of regulatory forbearance on loan classification, Fitch said many lenders continue to maintain capital adequacy ratios above 20%.
The agency expects some of the fresh capital to be used to strengthen existing foreign subsidiaries and support further expansion across African markets.
Fidelity Bank Plc and First City Monument Bank (FCMB) were among the institutions highlighted by Fitch for raising significant capital relative to their balance sheets to retain international banking licences, despite having relatively small operations in the United Kingdom.
The agency expects both banks to deploy part of the capital towards expanding their presence across African markets.
Despite the growing contribution of foreign operations, Fitch said African banking groups remain closely linked to the creditworthiness of their home countries.
The agency noted that none of the banking groups under its coverage, including the Nigerian lenders, currently have Viability Ratings or Long-Term Issuer Default Ratings above their domestic sovereign ratings.
For Nigerian banks, Fitch said sovereign exposure remains significant due to sizeable cash reserves held with the Central Bank of Nigeria, which are not fully captured by conventional exposure measures.
The agency, however, expects continued geographic diversification to gradually reduce banks’ sensitivity to domestic economic and sovereign risks over the medium term.
