GTBank, Dangote, MTN on List of 10 Most Profitable Companies in Nigeria

GTBank, Dangote, MTN on List of 10 Most Profitable Companies in Nigeria

  • The list of Nigeria's most profitable companies has been revealed based on financial results in 2022
  • MTN takes the first spot when it comes to revenue; however, GTB leads the table in profit margin
  • The figures are based on information gathered from companies' audited results released on the NGX.

Guaranty Trust Holding Company Plc, the parent company of Guaranty Trust Bank, has emerged as the most profitable company in Nigeria for 2022.

GTCO recorded the feat ahead of heavyweight contenders like Dangote Cement and MTN Nigeria, despite earning less revenue.

Nigerian companies on stock market
The 10 most profitable companies made N9.76 trillion in one year. Credit: NGX
Source: Facebook

According to data posted by Staitisense, a data-driven company, Guaranty Trust Bank (GTCO) recorded N490.13 billion, but its profit margin is 34.53%.

What is a profit margin?

Profit margin is a financial ratio that measures the percentage of profit a company earns in relation to its revenue.

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The profit Margin is calculated by (profit / Revenue) x 100.

For example, if a company's net income is N50,000 and its revenue is N200,000, the profit margin would be Profit Margin = (N50,000 / N200,000) x 100 = 0.25 x 100 = 25%. Therefore, the profit margin in this example is 25%.

How other companies performed

Stanbic IBTC comes second as the most profitable company despite its revenue being the 10th best among the companies surveyed.

Stanbic recorded a profit margin of 28.10% to beat BUA cement which had a profit margin of 27.98%.

Companies' revenue

  • MTN Nigeria Communications (MTNN) Plc: N2.00 trillion
  • Dangote Cement Plc: N1.62 trillion
  • Access Holdings: N1.33 trillion
  • Zenith Bank: N921.13 billion
  • United Bank of Africa (UBA): N748.29 billion
  • Guaranty Trust Holding Company (GTCO): N490.13 billion
  • BUA Foods: N418.35 billion
  • Seplat Energy: N403.90 billion
  • BUA Cement: N360.99 billion
  • Stanbic IBTC Holdings: N287.53 billion

List of top 10 most profitable companies

  • GTCO (Guaranty Trust Bank): 34.52%
  • Stanbic IBTC: 28.10%
  • BUA cement: 27.98%
  • Zenith Bank: 24.31%
  • Dangote Cement: 23.60%
  • UBA (United Bank for Africa): 22.76%
  • BUA Foods: 21.83%
  • MTN: 17.94%
  • ACCESS: 11.44%
  • Seplat 11.00%

Expert speaks on the companies' profit

Reacting to the performance of the 10 companies, Prof Ndubuisi Ekekwe, the Lead Faculty of Tekedia Institute, said:

"It is interesting how Dangote Cement outperformed MTN (a telecom company) on profit margin. Airtel Africa did not even make the cut, implying it was below 11% on profit margin! Very interesting indeed!"

He also praised GTB for recording an impressive performance

Fidelity targets five banks across Africa

In another report, Fidelity Bank is looking at acquiring five commercial banks across the continent.

This move comes after the bank recently finalised an acquisition in the United Kingdom.

Fidelity is currently the sixth-largest lender in Nigeria, with assets worth N4 trillion, and the bank has set new growth targets.


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