Nigerian banks report impressive growth in gross earnings for H1 2023
…Zenith Bank, GTCO, UBA lead way with strong financial performance
In a promising development for the Nigerian banking sector, eight Deposit Money Banks (DMBs) have collectively generated approximately N3.9tn in gross earnings during the first half of the 2023 financial period, according to the Nigerian Exchange Group (NGX).
The figures, obtained from the financial statements of the banks and published on the website of the Nigerian Exchange Limited, highlight the robust performance of the sector.
Leading the pack is Zenith Bank, which reported an impressive growth of 139 per cent in gross earnings, soaring from N404.8bn in H1 2022 to N967.3bn in H1 2023.
The bank’s profit after tax also experienced a substantial improvement, increasing by 161.84 per cent to N291.7billion by the end of June 2023.GTCO (Guaranty Trust Bank) also demonstrated strong financial performance, with gross earnings rising to N672.603billion from N364.306bn, representing an 85 per cent increase.
The bank’s audited consolidated and separate financial statements for the half-year period, filed with both the Nigerian Exchange Group and London Stock Exchange, revealed a profit after tax of N280.482billion in H1 2023, compared to N77.557billion in the corresponding half of 2022.
United Bank for Africa (UBA) delivered an impressive 164 per cent growth in gross earnings, reaching N981.78billion as of June 2023, compared to N372.36billion recorded in June 2022.
The bank’s strong financial performance reflects its commitment to driving growth and profitability. The remarkable growth in gross earnings for these banks underscores their resilience and ability to navigate challenging economic conditions.
Despite the impact of the COVID-19 pandemic and other macroeconomic challenges, these banks have demonstrated their ability to adapt and thrive.The Nigerian banking sector plays a crucial role in driving economic growth and development in the country.
The strong performance of these banks is expected to have a positive ripple effect on the overall economy, as it signifies increased investor confidence and potential for further investment. As the Nigerian banking sector continues to evolve, these impressive financial results serve as a testament to the resilience and adaptability of the industry.
The banks’ focus on innovation, digital transformation, and customer-centric strategies has contributed to their success in a rapidly changing business landscape. Looking ahead, these banks are well-positioned to capitalise on emerging opportunities and navigate potential challenges.
With a strong foundation and a commitment to excellence, they are poised to continue driving growth and contributing to the development of the Nigerian economy. In conclusion, the Nigerian banking sector has witnessed a remarkable growth in gross earnings during the first half of 2023.
Zenith Bank, GTCO, and UBA have emerged as frontrunners, showcasing their ability to adapt and thrive in a challenging economic environment. Their strong financial performance bodes well for the overall economy and underscores the resilience of the Nigerian banking sector..
United Bank for Africa delivered a 164 per cent growth in its gross earnings which rose to N981.78billion as of June 2023, from N372.36billion recorded last year in June 2022.
According to the bank’s audited financial report, UBA recorded profit after tax of N378.24billion, representing an increase of 437.8 per cent over H1, 2022.
Nigeria’s oldest bank, First Bank’s gross earnings rose by 82.8 per cent to N656.6billion in H1, 2023 from N359.2billion in the same period of 2022.
The bank’s profit after tax increased to N174.9billion in H1, 2023 from N53.3bn a year earlier.
Other top tier banks that recorded growth in gross earnings in the first half of the year included Wema bank (N89.09billion), Fidelity Bank (N247.1billion), Sterling Holding, (N99.06billion) and FCMB (N238.2billion). Cumulatively, all eight banks raked in N3.9trillion in the first six months of the year.
A further analysis of the banks’ financial statements showed that the record in the first half of the year was largely attributable to the devaluation of the naira that followed in the immediate aftermath of the CBN’s decision to float the local currency.
For example, Zenith Bank’s interest income grew by 72 per cent from N241.7billion in H1, 2022 to N415.4billion, while trading gains rose by 21 per cent to N103bn during this period.
The growth in interest income was attributed to the impact of both the growth and repricing of risk assets.
“The liberalisation of the foreign exchange market during the period spurred the growth in non-interest income as revaluation gains improved significantly,” the bank said.
