Analysis of the financial and equity performances thirteen quoted banks in Nigeria showed that they raked in a sum of N298.84 billion as post-tax profit between July and September 2022, representing an increase of 29.9 per cent compared to N228.54 billion recorded in the corresponding period of 2021.
In terms of profit after tax, Zenith, GTCo, and Access Bank led the list of banks with the highest profit.
The thirteen banks’ loans to customers grew by 5.5 per cent between June and September 2022 to stand at N23.76 trillion, representing a net new loan of N1.23 trillion in three months.
However, this showed a slightly slower growth than the 6.81 per cent increase recorded in the comparable period of 2021.
Customers’ deposit increased by 5 per cent in the period under review to stand at N43.68 trillion as of September 2022 from N41.61 trillion as of June 2022. Only four out of the thirteen banks recorded a positive growth in the share price in the third quarter of the local equities market.
The thirteen banks recorded an average cost-to-income ratio of 64.96 per cent in the review period, compared to 69.11 per cent recorded in the corresponding period of 2021, indicating more income as opposed to expenses.
Meanwhile, despite improved financial performance in the third quarter of the year, data from the National Bureau of Statistics (NBS) shows slow growth compared to previous periods.
According to the NBS, the Nigerian banking sector (sector GDP) slowed from 20.06 per cent and 25.5 per cent growth recorded in the second quarter of 2022 and third quarter of 2021 respectively to 12.03 per cent in real terms in the period under review.
The thirteen banks under consideration grew their total assets by 4 per cent from N63.59 trillion recorded as of June 2022 to N66.13 trillion as of the end of September 2022, representing an increase of N2.54 trillion in three months.
Access, Zenith,and First Bank recorded the highest asset value as of the period under review, however, the position changed in terms of growth rate. Below are the leading banks by total assets growth between June and September 2022.Customer deposits to the thirteen banks increased by 5 per cent in the third quarter of 2022 to stand at N43.68 trillion from N41.61 trillion recorded as of June 2022.As of the period under review, Access Bank boasts the largest loan book at N4.62 trillion, followed by Zenith Bank and First Bank with N3.88 trillion and N3.6 trillion respectively.Meanwhile, the Nigerian equities market dipped by 5.4 per cent in the third quarter of 2022, losing N1.48 trillion in market capitalization, while the listed banks suffered significant sell pressure.Out of the thirteen banks listed on the Nigerian Exchange, Wema Bank, Fidelity Bank, Sterling Bank and Union Bank recorded share price appreciation in the review period.
