Friday, February 3, 2023
HomeBanking & FinanceFive Tier-1 banks report N764b profits in nine months 

Five Tier-1 banks report N764b profits in nine months 

Five banks in tier-category have posted combined N764.5 billion profits in the last nine months of this year, analyses of their financial results have shown.

The unaudited accounts presented to the Nigerian Exchange (NGX) showed significant growth across income lines, despite challenging economic environments and headwinds.

Zenith Bank Plc achieved N202.5 billion Profit Before Tax (PBT), United Bank for Africa (UBA), recorded N138.5 billion, FBN Holdings, N105.5 billion, Guaranty Trust Holding Company, N169.7billion and Access Holdings Plc, N147.30 billion.  

These banks, which are also Strategically Important Banks (SIBs) control over 80 per cent of industry transactions, and profitability. 

Other performance indicators showed that Zenith Bank Plc  achieved N620.6 billion gross earnings, which represents 20 per cent growth in gross earnings compared with N518.7 billion reported in same period of 2021.

The bank’s interest income grew by 27 per cent from N308.8 billion to N390.8 billion in the current period, driven majorly by growth in risk assets and an improvement in pricing. These indicators, the bank said, raised Earnings Per Share (EPS) by nine per cent to N5.55.

Its total assets grew by 20 per cent from N9.45 trillion to N11.34 trillion in 2022, mainly driven by growth in customers’ deposits. Customer deposits grew by 24 per cent from N6.47 trillion in December 2021 to N8.04 trillion in September 2022 due to the market’s confidence in the brand.

Profit after tax equally grew by nine per cent from N160.6 billion to N174.3 billion in the same period respectively.

Growth in non-interest income was enabled by the group’s retail strategy, with continued substantial customer acquisition driving transactions, deposit growth and growth in electronic banking income.

Due to inflationary pressure and the rising cost of doing business, operating costs grew by 17 per cent. However, this was below the growth in gross earnings (20 per cent), thereby facilitating the double-digit growth in the bottom line.

“The continuing elevated yield environment affected the cost of funding which increased from 1.4 per cent to 1.7 per cent in the current period. This affected the net interest margin (NIM), which dropped due to the immediate implementation of higher yields on interest-bearing liabilities. However, the NIM is expected to see a correction in subsequent quarters as the assets side is repriced correspondingly,” the bank said in a statement.

Its loans and advances also grew by 16 per cent from N3.5 trillion in December 2021 to N4.06 trillion in September 2022, boosting the group’s interest income and displaying  its  appetite for high-yielding risk assets creation.

As a result of this growth, the capital adequacy ratio reduced from 21 per cent to 19.1 per cent, while the liquidity ratio reduced from 71.6 per cent to 68.9 per cent. Both prudential ratios remain very strong and are still well above regulatory thresholds.

The bank’s management expressed determination to sustain growth trajectory in the final quarter of this year while adapting to changes in the regulatory environment and focusing on creative initiatives to mitigate inflationary trends, foreign exchange pressures and the growing competitive environment.

Zenith Bank’s track record of excellent performance has continued to earn the brand numerous awards, including being recognised as Number One Bank in Nigeria by Tier-1 Capital, for the 13th consecutive year, in the 2022 Top 1000 World Banks Ranking published by The Banker Magazine.

The bank is also Best Bank in Nigeria, for three consecutive years from 2020 to 2022, in the Global Finance World’s Best Banks Awards among other numerous recognitions.

- Advertisment -spot_img
- Advertisment -spot_img

Most Popular

Recent Comments