A total of five leading Deposit Money Banks (DMBs) in Nigeria have reported 3.2 per cent increase in Profit Before Tax (PBT) to underlined economy challenges facing the sector in the nine months ended September 30, 2020.
Our correspondent gathered that the financial institution amid the COVID-19 lockdown that led to dwindling global economy provided significantly for bad loans.
Our correspondent gathered that these five DMBs reported a total of N437.8billion PBT in nine months ended September 30, 2020 from N424.33 billion reported in nine months ended September 30, 2019.
Also, our correspondent gathered that DMBs leveraged on fees and commission on electronic transaction and non-core banking transactions to boost PBT in the period under review.
Zenith bank with about 0.6 per cent increase in PBT to N177.28billion in nine months of 2020 as against N176.18billion reported in nine months of 2019.
Zenith bank, according to our correspondent findings is leading bank in the sector in terms of profitability.
According to the Zenith bank, the growth in profit demonstrates the bank’s resilience against the backdrop of a challenging macro-economic environment brought about by COVID-19.
“Going into the final quarter of the year, we will remain resilient as we keep adapting to the headwinds in the operating environment and continue to deliver enhanced customers experience and stakeholders value,” the bank management said in a statement.
However, Guaranty Trust Bank Plc (GTBank) reported N167.35billion PBT in nine months of 2020, 1.9 per cent decline from N170.65billion reported in nine months of 2019, while Access Bank grew PBT by 16 per cent to N116.6billion in nine months of 2020 from N100.8billion reported in nine months of 2019.
The Managing Director/CEO of GTBank, Mr. Segun Agbaje in a statement, said”Our 3rd Quarter result is a reflection of how we have appropriately positioned our balance sheet to cope with current economic realities and the challenging business environment.
“It is also testament to the enduring loyalty of our customers, the hard work and dedication of our staff and the unwavering support we continue to enjoy from all our stakeholders in our drive to deliver best-in-class financial services and superior and sustainable returns.”
Reacting also, the GMD/CEO, Access bank, Herbert Wigwe in a statement said, “We have continued to grow our African footprint in a capital-efficient and profitable manner, in furtherance of our vision to be the World’s most respected African Bank and Africa’s payment gateway. Our African expansion strategy is two-pronged; consolidating in markets we already exist (Mozambique and Zambia) to become major players and entering into new key African markets and trade corridors (Guinea, Kenya and South Africa).
“In addition, we have received the Central Bank of Nigeria’s Approval-In-Principle for a holding company (“HoldCo”) structure which will enable us further accelerate our objectives around business diversification, improved operational efficiencies, talent retention as well as robust governance.
“The year has been challenging for all and I would like to appreciate our customers for their unwavering loyalty in these uncertain times. Recognizing the adverse effects of the recent events on our customers, we remain committed to delivering superior value to our customers and providing innovative solutions for the markets and communities we serve.
“Going into the last quarter of the year, our focus remains on consolidating our retail momentum and expanding our African footprint.The next two years will see updates with regards the realization of synergies and actualization of the Bank’s strategic intent. Finally, I would like to thank our people and shareholders as we could not have achieved these feats without their dedication, commitment and support.”
In addition, United Bank for Africa Plc reported eight per cent decline in PBT to N90.37billion in nine months of 2020 from N98billion reported in nine months of 2019.
FBN Holdings reported significant increase in PBT by 16 per cent to N63billion in nine months of 2020 over sustainable gain in net gains on sale investment securities.
The Group Managing Director of FBN Holdings, UK Eke had said, “Looking ahead, we remain cautious, but we are confident that our business is fundamentally strong to withstand any future challenge towards enhanced performance”.