Q3 2022: UBA, FBN Holdings, GTCO, three others report N22.5trn customer deposit
…As UBA takes the lead
By Philemon Adedeji
A total of six banks grew depositors’ fund significantly to N22.5 trillion in the third quarter (Q3) 2022, reflecting an increase of 10.5 per cent from N20.35 trillion reported in 2021 financial year, according to Nigerian NewsDirect investigation.
The six financial institutions are: United Bank of Africa (UBA) PLC, First Bank Holdings, Guaranty Trust Holding Company (GTCO), First City Monument Bank (FCMB), Union Bank PLC and Sterling Bank PLC.
From the unaudited Q3 financial results ended September 30, 2022, UBA maintained leader in customers deposit, followed by FBN Holdings, while GTCO recorded as the third in deposit.
Likewise, FCMB Group recorded as the fourth, as Union Bank and Sterling Bank reported the lowest.
UBA reported N7.028 trillion customers deposit in nine months of 2022, representing an increase of 10.4 per cent from N6.369 trillion reported in 2021, FBN Holdings announced 12.8 per cent increase in customers deposit to N6.600 trillion in nine months of 2022 from N5.849 trillion reported in 2021.
GTCO announced 6.1 per cent increase in customers deposit from N4.012 trillion in 20.21 to N4.257 trillion in nine months of 2022.
Likewise, FCMB declared 16.7 per cent growth in customers deposit to N1.816 trillion as of end of September 2022 from N1.554 trillion in FY 2021.
After FCMB is Union Bank that announced 12.7 per cent increase in customers deposit to N1.527 trillion in nine months of 2022 from N1.355 trillion 2021, as Sterling Bank recorded the lowest out of the six banks customers deposit to N1.25trillion in nine months of 2022, an increase of 3.4 per cent from N1.205 trillion reported in 2021.
Commenting on the result, UBA’s Group Managing Director/Chief Executive Officer, Mr. Oliver Alawuba, said the Group continues to show notable operating resilience amid significant headwinds in its presence markets amidst heightened global risk environment, adding that its strong diversification model and unwavering focus on customer satisfaction continues to give the bank an edge over its peers in the industry.
He said, “We continue to reap the benefits of our diversification strategy and Customer-1st philosophy and build resilience in our operations across Africa and the rest of the World to support the mission of providing superior value to our stakeholders.
“This has translated into strong financial gains evident in growth in our customer deposits and Net interest margin. In addition, we are strategically positioned to drive our market share in our operating countries, with the strong growth of our payments and transaction banking offerings,” Alawuba stated.
Commenting on the results, the Group Chief Executive Officer of GTCO), Mr. Segun Agbaje, said, “The Group’s third quarter result reaffirms our strategy for long-term growth and underscores our capacity to deliver sustainable strong performance despite the volatilities in our operating environment.
“We have also kept in focus our vision of supporting small and medium enterprises specifically through our free business platforms to help them stay in business and expand their offerings.
“With our non-banking businesses fully operational alongside our core banking subsidiary, we are well positioned to maximise our earnings potential going into the 4th quarter of the year.”
He further stated, “In creating a thriving financial services ecosystem, our goal is to offer great experiences to all who interact with our brand whilst continually enhancing access to innovative financial solutions for individuals and businesses across Africa.
“We are appreciative of all our customers and other stakeholders who are with us on this journey of building a truly global African financial services institution.”
Commenting on the nine months results, the Group Managing Director, FBN Holdings, Mr. Nnamdi Okonkwo in a statement said, “FBN Holdings has again in Q3 2022 delivered a stellar performance, growing sustainable income from our core businesses. This is a testament to the success of our focus on carefully growing the business and driving profitability.
“As a result, Gross earnings grew 26.6per cent y-o-y to N546.2 billion, while profit before tax doubled y-o-y to N105.5 billion. I am particularly delighted by the significant improvement in our credit risk portfolio.
“Specifically, the NPL ratio closed at 4.7per cent within the regulatory threshold of five per cent, while the coverage ratio increased to 75.1per cent from 62.2per cent in FY 2021.
“Furthermore, during the period under review, in attestation of the progress made by the Group, Fitch upgraded the credit ratings of FBNHoldings and FirstBank to ‘B’ with a Stable Outlook.
“Value creation remains our overarching objective as we continue to leverage the strengths of our unique brand and heritage to optimise our diverse business portfolio.”
He added that, “We are confident of making further progress, with the capacity to generate sustainable performance that delivers superior returns to all our stakeholders.”
