GTCO, ZENITH LEAD NIGERIA’S BIGGEST BANKS IN CAPITAL STRENGTH

Guaranty Trust Holding Company (GTCO) and Zenith Bank have emerged as the leading banks among Nigeria’s FUGAZ group in terms of capital adequacy ratio (CAR), highlighting their stronger financial buffers and ability to absorb potential risks.

The capital adequacy ratio measures a bank’s financial strength by comparing its capital base with its risk-weighted assets. A higher ratio indicates greater capacity to withstand economic shocks and support lending activities.

Industry analysts said the strong capital positions of GTCO and Zenith Bank reflect effective risk management, strong earnings performance, and prudent balance sheet strategies. They noted that well-capitalised banks are better positioned to meet regulatory requirements and take advantage of growth opportunities.

The development comes as Nigerian banks continue to adjust to the Central Bank of Nigeria’s recapitalisation requirements aimed at strengthening the financial sector and preparing lenders for increased economic activity.

Experts said maintaining healthy capital levels will be crucial as banks expand lending, invest in technology, and support businesses across key sectors of the economy.