Access, UBA, 3 Other Leading Nigerian Banks Made Record Over N2.7trn Profits

Access, UBA, 3 Other Leading Nigerian Banks Made Record Over N2.7trn Profits

  • Top Nigerian banks have declared their earnings and collectively generated profits of over N2.7 trillion in 2023
  • These banks include Access Holdings, FBN Holdings(FBNH), Guaranty Trust Holding Company(GTCO), United Bank for Africa (UBA), and Zenith Bank
  • Additionally, the banks announced an increase in key financial metrics, indicating strong performance

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigerian banks are showing off huge balance sheets and record profits after tax, having had a fruitful runover in 2023.

Legit.ng analysis showed that the banks benefited enormously from naira depreciation and also interest income due to high lending rates.

Nigerian banks financial performance
Nigerian banks announce bumper profits Photo credit: Bloomberg/contributor
Source: Getty Images

Data obtained from Nigerian Exchange Limited showed that leading tier-one banks- Access Holdings, Zenith Bank, FBNH, GTCO and UBA recorded a total profit of N2.75 trillion

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The banks also recorded N5.07 trillion from interest incomes while forex gain contributed N2.64 trillion to the bank's strong performance.

Interest income is the amount paid to a bank by a customer for lending.

Breakdown of banks' performance

Here is a snapshot of the bank's performance based on released financial statements for full year 2023.

Zenith bank

Zenith Bank recorded a stellar performance among the banks surveyed, with its profit after tax of N676 billion being the highest for 2023.

The bank also reported remarkable triple-digit growth of 125% in gross earnings to N2.13 trillion for the full year of 2023, up from N945.6 billion reported in 2022."

It also recorded significant growth in income from loans and advances to customers, reaching N671.92 billion.

In its financial statement, Zenith Bank also revealed that it made N228.98 billion in forex gains in 2023.

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Access Holdings

Access Bank Holdings, the parent company of Access Bank, recorded the second-highest profit among the five banks.

Data shows that the bank reported a profit after tax of N619 billion and interest income of N1.65 trillion, which is a 99% growth compared to the previous year.

Customer loans and advances also increased to N747.22 billion, and forex gains for the year were N628 billion.

UBA

United Bank for Africa Plc also reported an exceptional and impressive performance across all its major indicators during the financial year ended 2023.

After paying its tax, the bank said it made a profit of N607 billion in 2023, a 257% increase from N170 billion reported in 2022.

While profit before tax grew by 277% to N758 billion, rising from N201 billion recorded at the end of the 2022 financial year.

Also worth noting is that UBA recorded an interest income of N1.0 trillion and a forex gain of N659.3 billion.

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GTCO

Guaranty Trust Holding Company Plc, in its financial statement, reported a profit after tax of N539.6 billion.

While its forex gains increased by 588.7% to N441.79 billion and Interest Income stood at N550 billion.

First Bank

First Bank of Nigeria Holdings’ profit at the end of 2023 rose to N309.89bn, which is 127% higher than N136.17bn at the end of the corresponding period in 2022.

The bank recorded an interest income of N917.71 billion, a 66.27% increase from the N551.94 billion in 2022.

Also, more money was made from fees and commissions, which stands at N204.90 billion from N143.98 billion in the previous year.

Data also showed that First Bank made N681.1 billion from forex gains in 2023.

Zenith, GTB, others announce new salary scale for workers

Legit.ng reported that some Nigerian banks have adjusted their employees' salaries and wages.

Wema Bank raised the salaries of its employees to alleviate the brutal effect of fuel subsidy removal, citing economic realities as the reason.

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The bank said its vision extends beyond its bottom line, and the salary adjustment is expected to have a positive ripple effect in the industry, a statement by the bank's divisional head, people, brand, and culture said.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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