Nine Banks Total Assets Reached N56.4trn in 2021 on Hike in Loans, Deposits

Kayode Tokede

With the growth recorded in loans & advances and customers’ deposit reaching a new high, a total of nine banks operating in Nigeria reported total assets of N56.4 trillion in the 2021 financial year.

This represents an increase of 16.4 per cent over the N48.5 trillion reported in 2020.

Analysis of banks’ financial statements for the year ended December 31, 2021 revealed that Access Bank lead the banking sector in total assets, followed by Ecobank Transnational Incorporated (ETI).

Other are; Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Holding company Plc (GTCO), Fidelity Bank Plc, Wema Bank Plc, FCMB Group Plc and Stanbic IBTC Holding Plc. 

According to the 2021 financial report, Access Bank’s total assets grew by 35.2 per cent to N11.73 trillion from N8.67 trillion in 2020, while ETI reported N11.56 trillion in total assets in 2021, an increase of N11.32 trillion in 2020.

Further analysis showed that Access Bank’s customer Deposits totaled N7 trillion in 2021 from N5.6 trillion in 2020, as net loans and advances totaled N4.4trillion in 2021 from N3.6trillion reported in 2020.

The Chief Executive Officer, Access Bank, Herbert Wigwe had while commenting on the bank’s results stated that its diversified business model yielded positive sustainable results, guided by a robust risk management framework, as the bank grew the business cautiously and recorded sound prudential ratios.

He added that: “To actualize our vision of becoming the world’s most respected African Bank and Africa’s Payment Gateway, we have taken strategic strides to create indelible footprints across the African continent.

“These include our most recent additions in South Africa, Botswana, and Guinea We also strengthened our business in Mozambique and Zambia, with noticeable improvement in rankings and market share.”

For Zenith Bank, its total grew by 11.4 per cent to N9.45trillion in 2021 from N8.48trillion in 2020. The growth in Zenith Bank total assets was driven by 21per cent increase in customers’ deposits in 2021 as gross loans grew by 20per cent, propelled by both corporate and retail lending activities. 

Among the Tier-1 banks that contributed in the N56.4 trillion total assets in 2021 was UBA with N8.54trillion in 2021 from N7.69 trillion in 2020, while GTCO reported 9.9 per cent increase in total assets to N5.4trillion in 2021 from N4.94trillion in 2020.

Commenting, Group Chief Financial Officer, UBA, Ugo Nwaghodoh, said the bank achieved sizeable growth and strengthened its balance sheet despite the slow pace of economic recovery that characterised the year 2021.

Nwaghodoh added that the bank achieved further strides in growing its business and gaining market share across its pan-African operations, with the region accounting for 63.2per cent of the Group’s profitability, compared to 55.4per cent in 2020; Loans and advances as well as Deposit in the region were also up 14.5per cent and 27.3per cent respectively from a year earlier.

He added that: “We recognise the changing competitive landscape and are proactively positioning to consistently deliver on our strategic objectives and commitment to shareholders.”

The likes of Fidelity Bank grew total assets by 19.2 per cent to N3.29trillion in 2021, while Wema Bank reported 18.3 per cent increase in total assets to N1.16trillion in 2021.

In addition, FCMB Group closed 2021 with N20.6 per cent increase in total assets to N2.48trillion as Stanbic IBTC Holding reported N2.75trillion total assets in 2021, an increase of 10.5 per cent from N2.49trillion reported in 2020.

Recently, the Central Bank of Nigeria (CBN) said the banking industry continued on its year-on-year upward trajectory with total assets rising to N59.24 trillion in 2021 from N50.99 trillion in 2020.

The Deputy Governor, Financial System Stability, CBN, Aisha Ahmad had in her personal statement during the January 2022 Monetary Policy Meeting (MPC) said: “Key industry aggregates also continued their year-on-year upward trajectory with total assets rising to N59.24trillion in December 2021 from N50.99 trillion in December 2020, while total deposits rose to N38.42 trillion from N32.21 trillion over the same period. 

“Total credit also increased by N4.09 trillion between end December 2020 and end-December 2021 with significant growth in credit to manufacturing, General commerce and Oil & Gas sectors. 

“This impressive increase was achieved amidst continued decline in non-performing loans ratio from 5.10 per cent in November 2021 to 4.94 per cent in December 2021 (6 basis points below the regulatory benchmark) for the first time in over a decade.”

Another member of the MPC and a Professor of Economics at the University of Ibadan, Festus Adenikinju said the banking system stability review report showed that the banking system remain safe, sound, and resilient.  

According to him; “The report also showed growth in total assets, total deposits as well as total credit to the economy. Gross credit rose from N20.48 trillion in December 2020 to N24.57 trillion in December 2021. The growth in bank credit is largely due to the LDR policy of the CBN.”