ETI, Zenith Bank, FBN Holdings, 3 others D-SIBs report N32.89trn in total assets

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Story by Kayode Tokede

A total of six Domestic- Systematic Important Banks (D-SIBs) of the Central Bank of Nigeria (CBN) have reported N32.89 trillion total assets in 2018, data gathered by Nigerian NewsDirect has revealed.

The six DIBs in 2017 reported N28.96 trillion in total assets, the data further revealed.

Further Findings by our correspondent revealed that Ecobank Transnational Incorporated (ETI) has one of the highest total assets, followed by Zenith Bank plc and FBN Holdings Plc.

ETI, a pan-African financial institution reported 19.7 per cent increase in total assets to N8.19 trillion in 2018 from N6.84 trillion in 2017.

The increase in ETI growth in total assets last year was driven by 17 per cent increase in loans and advances to customers and 25 per cent increase in deposit from customers.

With 6.4 per cent increase, Zenith Bank reported N5.96 trillion in total assets in 2018 fromN5.59trillion reported in 2017 while FBN Holdings reported 6.3 increase in total assets to N5.6 trillion from N5.2 trillion in 2017, driven by 33.3per cent increase in investment securities to N1.7 trillion as against N1.2 trillion reported in 2017.

The other two D-SIBs, Access Bank and United Bank for Africa Plc (UBA) have total assets above N4trillion mark.

For the 2018 financial year, Access Bank, without Diamond bank’s total assets reported N4.95 trillion in total assets last year, 21 per cent increase over N4.1 trillion in 2017. UBA’s total assets rose by 19.7 per cent to N4.87 trillion in 2018 from N4.1 trillion in 2017.

S & P Global Ratings in March said, “We believe the Diamond Bank deal will cement Access Bank’s market leading position in the top-tier of the competitive Nigerian banking sector. The combined entity has total assets of about N6.1 trillion, representing almost a 20per cent total market share.

“The combined entity boasts the largest franchise by customer base, loans, and customer deposits. We believe the deal could expand Access Bank’s customer and loans base compared with peers, underpinning stronger revenue stability during an economic downturn in Nigeria (relying on its non-interest revenues base) and earnings growth as Access Bank deploys its scalable banking platform effectively.

“Over the medium term, we believe that the deal will help Access Bank strengthen its franchise and revenue generation capabilities. On Dec. 31, 2017, Diamond Bank had over 6.5 million retail customers with the retail business accounting for approximately 70per cent of deposits and 35per cent of revenues.”

In addition, Guaranty Trust Bank plc was the only financial institution with N3.35 trillion in total assets, 7.5 per cent increase over N3.12 trillion in 2017.

The apex bank in its fourth quarter economic report of 2018 noted that total assets and liabilities of commercial banks stood at N37.2 trillion as at November 31, 2018, representing 0.4 per cent decrease below the level at end-September 2018.

According to CBN report, funds were sourced, largely, from foreign liabilities, draw down on reserves and acquisition of credit from Central Bank. The funds were used, mainly, for payment of matured demand deposits, and settlement of claims on Central Bank and Federal Government.

“Total specified liquid assets of the banks was N12.16 trillion as at the end of November 31, 2018, representing 56.8 per cent of the total current liabilities,” the report explained.

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