Five Tier-1 Banks Generated N1.74tn Profit in 9 months

Nume Ekeghe

United Bank for Africa Plc (UBA), Zenith Bank Plc, and three other financial institutions generated N1.74 trillion profit in 9 months ended September 30, 2023, representing an increase of 168 per cent over N648.84 billion reported in nine months of 2022.

The remaining three banks are Access Holdings Plc, FBN Holdings and Guaranty Trust Holdings Plc (GTCO). 

The combined five financial institutions generated N2.01trillion profit before tax in nine months of 2023, a growth of 163 per cent from N763.3billion in months of 2022.  

The growth by these banks profit is coming on the backdrop of interest income on loans to customers, and foreign exchange revaluation gain. 

UBA for the second consecutive quarter maintain its position as the leading Tier-1 bank in Nigeria, followed by Zenith Bank. 

UBA reported N449.3billion profit in nine months of 2023, a growth of 287 per cent from N116.04billion in in nine months of 2022, while profit before tax hits N502.09billion in nine months of 2023, an increase of 262.54 per cent from N138.49billioon reported in nine months of 2022. 

For Zenith Bank, it generated N434.17billion profit in nine months of 2023 from N149.05billion in nine months of 2022, while its profit before tax hits a record of N505.04billion in nine months of 2023, an increase of 149.05 per cent from N174.33billion in nine months of 2022. 

The Group Managing Director/CEO, UBA, Mr. Oliver Alawuba, remarked that the Group has once again shown sustainable and remarkable improvement in key performance metrics over the period, reflecting its commitment to delivering value to shareholders and various stakeholders.

He said, “This significant improvement is attributed to the impact of FX harmonisation, efficient balance sheet management, and our service-focused strategies. Our banking operations outside of Nigeria have continued to capture the broader business opportunities inherent across, and beyond Sub-Saharan Africa.

Speaking on plans and strategy to sustain and surpass the performance at the end of the year, he explained that the bank will continue to leverage its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions, as he pledged the bank’s commitment towards expanding and deepening digital and other transactional banking offerings while building strategic alliances to take advantage of emerging opportunities in due time.

“Looking ahead, we are optimistic that the growth trajectory will be sustained in the final quarter of the year as we remain focused on consolidating the gains achieved so far in delivering enhanced returns to our shareholders,” Alawuba pointed out.

The Zenith Bank in a report disclosed that it achieved a year-on-year (YoY) growth in gross earnings of 114per cent from N620.6 billion reported in Q3 2022 to N1.33trillion in Q3 2023. 

“This triple-digit growth in the topline also enhanced our bottom line as the Group recorded a 149per cent YoY increase in profit before tax, growing from N202.5 billion in Q3 2022 to N505 billion in Q3 2023. Profit after tax also grew by 149per cent from N174.3 billion to N434.2 billion in the same period. The growth in the topline arose from both interest income and non-interest income. 

“The growth in profit similarly is attributable to the twin effects of the improvement in interest and non-interest income. Interest income increased because of the growth in risk assets as well as the effective pricing thereon. The non-interest income growth is largely driven by the revaluation gain due to the unification of exchange rates during the year,” the bank added. 

For GTCO, it declared N367.42 billion profit in nine months of 2023 from N130.35 billion in nine months of 2022 and announced N433.2billion profit before tax in nine months of 2023, a growth of 155 per cent from N169.7billion in nine months of 2022. 

As Access Holdings reported N250.44 billion profit in nine months of 2023 from N136.9billion in nine months of 2022, FBN Holdings announced N236.42billion profit in nine months of 2022, a significant increase of 159.2 per cent from N91.2billion in nine months of 2022. 

The banking subsidy of FBN Holdings, First Bank of Nigeria Limited reported profit after tax of N221.1 billion, up 158.2per cent y-o-y as against N85.7 billion in nine months of 2022. 

The Chief Executive Officer of First Bank of Nigeria Limited, in a statement said: “In the nine months ended September 30, 2023, FirstBank Group reported impressive financial results, reflecting sustained growth and resilience of the franchise.

“Our gross earnings at the end of the quarter were N922.2 billion, marking a remarkable increase of 79.8per cent  year-on-year. The substantial increase of 49.3per cent y-o-y in net interest income reflects our commitment to managing interest rate dynamics effectively and optimising our interest-earning assets, while the impressive growth of 111.6per cent y-o-y in non-interest income underscores our success in diversifying the Bank’s revenue streams and providing value-added services to our customers.  Growth of 157.9per cent and 158.2per cent y-o-y in Profit Before Tax and Profit After Tax respectively reflect our commitment to delivering exceptional value to our shareholders and stakeholders.

“This performance is a testament to the dedication and hard work of our entire team, and it reaffirms FirstBank’s position as one of the leading players in the commercial banking industry. As we continue to face dynamic market conditions, our agility, risk management capabilities and strategic approach will remain pivotal in sustaining this impressive growth trajectory. 

“Looking ahead, we are committed to sustaining this momentum, exploring new growth opportunities through innovation and upholding our core value of customer centricity.”