Bank-Backed Fintech in Nigeria Hit ₦7.91 Billion Profit in 2025: HabariPay Leads with Cost Efficiency
Bank-Backed Fintech in Nigeria Hit ₦7.91 Billion Profit in 2025:
HabariPay Leads with Cost Efficiency Nigeria’s bank-backed fintech subsidiaries are showing unprecedented maturity in 2025, collectively posting a combined ₦7.91 billion ($5.43 million) in net profit for the first nine months their strongest performance since banks entered the fintech race.
Led by Guaranty Trust Holding Company Plc’s HabariPay with a staggering ₦6.54 billion profit, the trio of HabariPay (GTCO), Hydrogen (Access Holdings), and Zest (Stanbic IBTC) flipped from losses to dominance, driven by cost control, surging transaction volumes, and deeper merchant adoption.
For the first time, all three are profitable in the same period, signaling a shift from “slow and rigid” bank subsidiaries to agile competitors challenging OPay, PalmPay, and Moniepoint. This growth reflects rising transaction values (up 127.93% for Hydrogen to ₦60.4 trillion) and merchant uptake, as everyday users shift to bank-backed digital channels amid CBN’s inclusion push. For years, independent fintech like OPay and PalmPay dominated with speed and low fees, while bank subsidiaries were criticized as slow and distracted.
Now, leveraging parent banks’ vast networks and improving infrastructure, these players are closing the gap – with HabariPay’s cost-to-income ratio at a lean 30.69% (vs. Hydrogen’s 78.66% and Zest’s 78.23%). Zest, launched in October 2023, posted its first-ever profit in Q3, while Hydrogen and HabariPay continued their upward trajectory. Here’s the breakdown. HabariPay (GTCO)
The Profit Powerhouse at 82% Share Guaranty Trust Holding Company’s HabariPay led the pack with ₦6.54 billion in net profit (up 115.51% YoY), accounting for 82% of the group’s total. Operating income jumped 112.68% to ₦9.43 billion ($6.47 million), fueled by Squad – its payment ecosystem for virtual accounts, USSD, cards, and switching. Expenses rose 171.61% to ₦2.89 billion ($1.98 million), but its cost-to-income ratio of 30.69% remains the leanest in the group. GTCO’s Segun Agbaje called HabariPay a “strategic growth engine,” crediting Squad’s API connectivity and cross-platform interoperability for the surge. Hydrogen (Access Holdings)
Profit Down 42% Despite Transaction Surge Access Holdings’ Hydrogen reported ₦833 million ($571,832) in profit, down 42.63% YoY, with operating income up 0.95% to ₦5.74 billion ($3.94 million) but expenses climbing 6.64% to ₦4.52 billion ($3.10 million).
Launched in September 2022 as a backend payments provider for fintech, banks, and telcos, Hydrogen turned profitable in Q4 2023.Transaction value soared 127.93% to ₦60.4 trillion ($41.46 billion), boosted by the Hydrogen Payment Gateway (launched 2024) and improvements in switching, collections, and card security. Market share in switching reached 14%, with 20,000+ merchants dependent on it.
Access Holdings’ Roosevelt Ogbonna highlighted pan-African ambitions, positioning Hydrogen as a regional infrastructure player. Zest (Stanbic IBTC) – First-Ever Profit in Q3 2025Stanbic IBTC’s Zest achieved ₦543 million ($372,755) in Q3 profit – its first ever – reversing a ₦1.89 billion ($1.29 million) loss from 2024.
H1 2025 saw a ₦389 million ($267,038) loss, improved from ₦945 million ($648,717) YoY, with revenue exploding 14-fold to ₦874 million ($599,978). Expenses rose 6.53% to ₦2.12 billion ($1.46 million) in Q3, but the unified dashboard for cards, transfers, mobile money, and QR codes is gaining traction with 20,000+ merchants. Stanbic’s investment in Zest surged 85.8% since December, fueling infrastructure for payments and collections.
The Efficiency Gap: Cost-to-Income Breakdown HabariPay’s lean operations shine here – its 30.69% ratio is half the group’s average, proving GTCO’s obsession with cost control pays off.
|
Fintech Subsidiary
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Parent Bank
|
9M 2025 Profit (₦B)
|
Cost-to-Income Ratio
|
YoY Profit Change
|
|---|---|---|---|---|
|
HabariPay
|
GTCO
|
6.54
|
30.69%
|
+115.51%
|
|
Hydrogen
|
Access Holdings
|
0.83
|
78.66%
|
-42.63%
|
|
Zest
|
Stanbic IBTC
|
0.54
|
78.23%
|
First Profit
|
Source: Company financial statements (9M 2025).How Banks Got Here: From CBN Mandate to Fintech DominanceThe CBN’s 2010 holding company directive enabled banks to launch non-banking subsidiaries, spawning fintech arms like HabariPay (June 2022), Hydrogen (September 2022), and Zest (October 2023).
These platforms leverage parent banks’ customer bases and networks, now processing billions in transactions.Future Bets: Can Bank Fintechs Catch OPay and PalmPay?While profitability is a win, the real challenge is brand identity. HabariPay, Hydrogen, and Zest rely on parent banks’ trust but lack the viral appeal of OPay (30M+ users) or PalmPay (55M+).
GTCO plans to scale HabariPay’s Squad for better API integration and in-app payments. Access Holdings eyes continental expansion for Hydrogen, while Stanbic invests 85.8% more in Zest for payments and collections. Bank-backed fintech are maturing fast – but can they build consumer love like OPay? What do you think? Comment below!
Updated November 25, 2025. What’s your take on bank fintech vs independents?
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