Access, UBA, 3 Other Leading Nigerian Banks Made Record N10tn in 2023
- Five tier-1 banks in Nigeria collectively generated revenues totalling N9.51 trillion in the 2023 financial year
- The banks include Access Holdings, FBN Holdings, Guaranty Trust Holding Company, United Bank for Africa (UBA), and Zenith Bank
- Financial results also showed that the five banks collectively generated N2.75 trillion in profit after tax in 2023
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
In the face of significant challenges within the Nigerian banking sector and economy, five tier-1 banks in the country collectively generated revenues totalling N9.51 trillion in the 2023 financial year.
The figures were derived from the annual reports submitted by the financial institutions to the Nigerian Exchange Limited.
Source: UGC
The banks include Access Holdings Plc, FBN Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, and Zenith Bank Plc.
It would be recalled that Legit.ng earlier reported that the collective operating expenditures of 10 Nigerian banks surged by 42.51%, reaching N3.23 trillion in 2023 from N2.26 trillion in the preceding year.
Breakdown of banks' gross earnings
For example, Access Holdings Plc saw its gross earnings increase to N2.59 trillion from N1.389 trillion in 2022, marking an 87% rise.
FBN Holdings experienced growth in earnings from N805.13 billion in 2022 to N1.52 trillion in 2023, representing an 88.5% increase, while GTCO's revenue surged by 120%, climbing from N539.24 billion to N1.187 trillion in 2023.
UBA's revenue climbed to N2.08 trillion in 2023 from N853.2 billion in 2022, marking a 143% increase, whereas Zenith Bank recorded a 125.4% increase in revenue, reaching N2.13 trillion in 2023 from N945.55 billion in 2022.
| No | Bank | Gross earnings in 2022 | Gross earnings in 2023 | % increase |
| 1 | Access Holdings | N1.38 trillion | N2.59 trillion | 87% |
| 2 | FBN Holdings | N805.13 billion | N1.52 trillion | 88.5% |
| 3 | GTCO | N539.24 billion | N1.187 trillion | 120% |
| 4 | UBA | N853.2 billion | N2.08 trillion | 143% |
| 5 | Zenith Bank | N945.55 billion | N2.13 trillion | 125.4% |
Coincidentally, the banks mentioned above are some of the most capitalised banks in Nigeria, among the 13 listed on the Nigerian stock exchange.
Further analysis showed that the five banks collectively generated N2.75 trillion in profit after tax in 2023, representing a growth of 224.4% from the N807.65 billion reported in 2022.
Economic analysts point out that this achievement highlights the resilience and potential of Nigeria's banking sector, indicating a growing economy, increased financial activity, and the crucial role of the banking sector in driving economic growth and development.
Performance shows resilience
Commenting on the performances of the banks, Chika Mba, Managing Director of Newform Investments, highlighted to Legit.ng that despite a challenging economy, the banking sector demonstrates remarkable resilience.
He emphasized that the government and Nigerians stand to gain from the banks' improved earnings through increased tax revenues.
"Amid hiked interest rate, increasing inflation and a troubling exchange rate crisis, many Nigerian banks have shown resilience, a testament to the strong banking system in Nigeria.
"Another good side of it is that the more profit banks make, the more they will have to pay back in tax revenues to the government. The tax we are talking about here is in no small amount and you can imagine what the government would be able to do with more tax."
Mba further noted that the positive performances of banks indicate that many of them will likely meet the deadline for the newly revised recapitalization mark set by the Central Bank of Nigeria (CBN).
Four banks delay release of financial results
In related news, Legit.ng reported that four banks publicly declared their intention to postpone the submission of their audited financial reports for the fiscal year 2023.
These financial institutions include the United Bank for Africa, Zenith Bank, Stanbic IBTC, and Wema Bank.
The banks have communicated their inability to meet the deadline for filing their audited results for the preceding financial year.
According to the regulations of the Nigerian Exchange, companies listed on the exchange are required to submit their previous year's financial reports by March 31.
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Source: Legit.ng
