Surge in banking deposits signals robust sector growth in Q1, 2024
By Esther Agbo
Banking sector deposits have surged to N136 trillion by the end of the first quarter of 2024, reflecting a substantial increase from the previous year’s total of N115 trillion, according to recent data from the Nigerian Exchange Limited and industry sources.
In Q1 2024 alone, banks experienced a significant influx of approximately N21 trillion in new deposits, marking an 18.26 percent rise over the previous three months and continuing the sector’s strong performance trend from 2023.
This growth follows a 63 percent increase from N70.5 trillion in 2022 to N115 trillion in 2023.
The expansion is evident across various banking tiers, with mid-sized and newer institutions showing remarkable growth.
For example, Zenith Bank’s deposits climbed by 69 percent from N8.98 trillion in 2022 to N15.17 trillion in 2023, reaching N16.78 trillion by March 2024. Similarly, FCMB Group’s deposits grew from N2.07 trillion in 2022 to N3.7 trillion in Q1 2024.
New entrants like Premium Trust Bank saw a dramatic increase of 382 percent in deposits, from N55 billion in December 2022 to N309 billion by March 2024.
Established players also posted gains, with Fidelity Bank’s deposits rising to N4.71 trillion from N2.58 trillion in 2022 and United Bank for Africa’s grew from N10.86 trillion in 2022 to N14.9 trillion in 2023 reaching N18.4 trillion by March.
Access Holdings reported a striking growth trajectory, with deposits escalating from N11.3 trillion in 2022 to N24.7 trillion in March 2024. Guaranty Trust Holding Company also doubled its deposits from N4.6 trillion in 2022 to N9.2 trillion by Q1 2024 while Sterling Holding Financial Company crossed the N2tn mark to N2.15tn during this period, from N1.4tn and N1.8tn in 2022 and 2023, respectively.
This surge in deposits is mirrored by an increase in bank loans and support for the private sector.
The Central Bank of Nigeria (CBN) data indicates a significant rise in credit, with loans to the private sector expanding by N29.52 trillion representing a 65.9 per cent increase to N74.31 trillion as of May 2024, up from N44.79 trillion in the same period of the previous year.
This trend highlights the vital role of banking deposits in driving economic growth and supporting private sector development.
