Zenith, UBA Lead as List of Nigeria Most Capitalised Banks Emerges, CBN Denies Stress Report
- The CBN recently announced that the capitalization of banks will be increased
- In light of this, banks are injecting more capital to emerge strong and supercede the anticipated requirement
- Data computed showed that Zenith Bank is the strongest in Nigeria, with N1.92 trillion in shareholders' funds
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The governor of the Central Bank of Nigeria (CBN), Olayemi Michael Cardoso, told Nigerian banks to prepare for a new round of banking sector recapitalization as the nation works towards the $1 trillion Gross Domestic Product (GDP) target.
Source: UGC
Cardoso said that the current bank capitalization would not be able to handle President Tinubu's administration's GDP expansion drive.
In line with this drive, investigations have shown that most Nigerian banks are shoring up additional capital. Legit.ng reported that banking consolidation leads investors to inject N110bn in UBA, First Bank, and others.
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Meanwhile, the CBN in a recent report, has expressed confidence in all Nigerian banks despite reports of potential failure.
Data computed by ThisDay shows the list of the top most capitalized banks in the country as of the third quarter of 2023
Zenith Bank – N1.92 trillion
According to Zenith Bank Plc's third-quarter 2023 financial report, the bank has around N1.92 trillion in shareholders' funds, up from N1.31 trillion in 2022. This puts it in first place. In 2023, the bank generated N505 billion in pre-tax profit, making it the largest profit maker in Nigeria.
UBA -N1.778trillion
United Bank for Africa is Nigeria's second-highest profit-generating bank this year and the second-most capitalised bank as of September 2023, closely following Zenith Ban. The bank reported N1.778 trillion in total shareholders' funds as of Q3, 2023.
Access Holdings – N1.64 trillion
According to its third-quarter report for the year, Access Holdings has N1.64 trillion in total equity, as opposed to N1.231 trillion in 2022. Regarding capital basis, Access Holdings is the third-largest bank in Nigeria with this amount. As of September 2023, Access Bank Nigeria has a total equity of N1.208 trillion, a stable amount in the event of any recapitalization exercise.
First Bank Holdings – N1.37trillion
FirstBank came in fourth place according to the capital base ranking. Its parent company has a total equity of N1.37 trillion, according to its Third Quarter 2023 statistics. However, First Bank Limited, the company's commercial banking division, has N1.287 trillion in capital. The holding firm reported having a wealth of 995.7 billion in 2022.
Ecobank- N1.37trillion
In contrast to N935 billion during the same period in 2022, the bank reported a shareholders fund of N1.373 trillion in its third quarter 2023 performance report. This puts the bank in fifth place among the most capitalised banks.
GTCO Holdings – N1.27trillion
With a total equity of N1.273 trillion, GTCO Holdings, the parent company of GTBank, has increased its value by 36.7 percent year-to-date from N931 billion at the beginning of 2023.
The N1.27 billion stated as total equity is the sum of the shares held by all of the group's subsidiaries.
Stanbic IBTC Holdings – N471billion
Stanbic IBTC Holdings, a Nigerian affiliate of Standard Bank Group, has a capital base of N471 billion as of September 2023. In 2022, it had N407.7 billion in capital.
Fidelity Bank Plc – N411 billion
As of September 2023, Fidelity Bank has a capital basis of N410.75 billion, up from N314.3 billion in 2022. This puts the bank well ahead of any recapitalization efforts by other Nigerian banks.
FCMB -N373.7billion
FCMB is Nigeria's ninth most capitalised bank and has a capital basis of N373.7 billion as of September 2023. This is up from N275.8 billion in 2022. As of December 31, 2022, FCMB's capital adequacy ratio (CAR) stood at 16.0 percent, marginally higher than the regulation 15% mandated by the CBN.
Sterling Financial Holdings – N165.84billion
Following the deduction of N2.08 trillion from total assets of N2.25 trillion, Sterling Bank's capital base was N165.84 billion. 2022 saw N154 billion in its capital.
Trouble for Nigerian Banks in Congo as Country's Central Bank Imposes Sale of 45% Stake
Legit.ng reported that Nigerian banks in Congo could be affected by the new directive by the Central Bank of Congo. The instruction mandates banks to sell 45% of their stake within three years.
The apex bank wants traditional banks in the country to have at least four unrelated shareholders holding a minimum of 15% each.
This must include the current owner of the bank to allow the institution to spread risk.
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Source: Legit.ng
