Nigeria’s Top Five Banks Achieve 146 Trillion Assets
Nigeria’s top five banks have seen their total assets surge by over 55% year to date, settling at N146.34 trillion, according to figures obtained from their unaudited financial statements for the third quarter of 2024.
This substantial growth in total assets is attributed to increased loan activity, as higher deposits have bolstered lending appetites. The Central Bank of Nigeria’s enforcement of the cash reserves ratio has also supported loan growth during this period.
Loans to customers across the five banks rose by 44.18% from the start of the year, reaching N41 trillion. Access Holdings alone accounted for over 28.7% of the loans extended by the top banks during this timeframe. In contrast, GTCO emerged as the lowest lender, contributing just 7% of the Tier-1 banks’ total loans to customers. Notably, loans constituted 28.23% of the total assets of the Tier-1 banks by the end of the third quarter of the financial year 2024.
On the earnings front, the top banks experienced a remarkable 97% year-on-year profit growth, amounting to N3.43 trillion during the same period. This earnings growth was largely driven by adjustments in interest rates on loan books to reflect changing market dynamics.
Despite facing tough economic conditions, local deposit banks have thrived following successive interest rate hikes. The tightening of monetary policy has been primarily influenced by a double-digit inflation rate, with the interest rate raised to 27.25% during the latest policy meeting despite a trend towards disinflation.
Fitch Ratings has projected a further increase in headline inflation ahead of the last policy meeting of 2024. GTCO led the profit-making segment, with its profits rising by more than 195% year on year to N1.085 trillion. The bank reported loans to customers amounting to N3.02 trillion, the smallest among its peers, while it holds a significant shareholders’ fund of N2.632 trillion, up from N1.477 trillion at the start of the year. GTCO’s profit accounted for 31.6% of the Tier-1 banks’ total profitability during this period.
Zenith Bank secured second place in profit generation, with its financial statement revealing a profit climb of 90.5% year on year to N827 billion by the end of the third quarter. The bank’s total assets increased to N30.38 trillion, up from N20.368 trillion at the start of the year, driven by an expansion in its loan book to N9.4 trillion, rising from N6.556 trillion.
FBN Holdings ranked third in terms of profit size, reporting a 126% year-on-year growth in profitability, with profits reaching approximately N534 billion by the end of the third quarter, compared to N236 billion the previous year. This growth was propelled by a robust increase in interest income, supported by non-interest-related earnings.
UBA followed closely behind FBN Holdings, with net income increasing by 16.9% year on year to N525 billion, up from N449.296 billion in the previous year. Despite a 47% year-on-year growth in loans to customers, UBA’s profit growth was the slowest among the top five banks.
Access Holdings Plc, the largest bank in Nigeria, reported the least impressive performance in the Tier-1 category, with profits growing by 83% to approximately N458 billion, up from N250 billion in the prior period. Access Holdings’ loans to customers increased by about 48% year on year, reaching N11.861 trillion.
These results demonstrate the significant growth and resilience of Nigeria’s leading banks as they navigate the evolving economic landscape. Nigeria’s Tier-1 Banks’ Valuation Soars to 5.7 Trillion
