BusinessDay
Nigeria's leading finance and market intelligence news report.

Five takeaways from Nigerian banks’ Q1 results

Guaranty Trust Bank (GTBank), Ecobank and Stanbic IBTC have released their financial reports for the first quarter (Q1) of 2021, showing how the banks have performed so far this year.

Although yields on treasury bills have been rising compared to last year, the results show that these banks have not been able to get their interest income and profits to pre-2020 levels.

With other banks yet to report their earnings, here is the trend so far from the ones that have.

Profit

Ecobank recorded an increase in profit in the first quarter while Stanbic and GTBank recorded a decline in the same period.

Ecobank’s profit rose 23.5 percent to N30.4 billion in the Q1 2021 compared to N24.6 billion in the same period last year.

Stanbic’s profit after tax however dropped 45.6 percent to N11.2 billion compared to N20.6 billion in the same period last year.

GTBank also saw its profit plunge 9 percent to N45.5 billion in Q1 2021 from N50 billion in the same period last year.

Interest income

Even with the rising yields on treasury bills, banks have not been able to get interest income to pre-2020 levels.

Ecobank recorded an 11.7 percent increase in its interest income to N139 billion in the Q1 compared to N124 billion last year.

Stanbic IBTC’s interest income declined 23 percent to N21 billion in Q1 compared to N27.4 billion recorded in the same period last year.

Likewise, GTBank’s interest income calculated using effective interest rate fell 25 percent to N55.1 billion in Q1 compared to N75.3 billion the previous year.

This comes as cash earned from loans and advances, which accounts for more than half of total interest income, plunged for most of these banks.

Loans and advances

All the banks recorded a decline in loans to customers in the Q1 of the year compared to the same period last year, but recorded an increase in loans to banks.

Ecobank’s loan and advances to customers fell 36 percent to N103.2 billion compared to N161.9 billion in the same period last year. However, loans and advances to banks rose to N9 billion compared to a loss N54.8 billion last year.

GTBank’s loans to customers dropped 4.5 percent to N44.3 billion in Q1’21 compared to N46.4 billion in Q1’20. The bank’s loans and advances to banks grew 181 percent to N4.5 million compared to N1.6 million the year before.

Stanbic’s loans to customers also plunged 5 percent to N15.9 billion in Q1 to N16.8 billion in the same time last year. However, loans to banks fell 63 percent to N223 billion compared to N617 billion last year.

Earnings per share (EPS)

Stanbic’s EPS fell 49 percent to N96 kobo per share in the Q1 compared to N191 kobo per share in the same time last year.

GTBank’s earning per share dropped 9 percent to N1.60 per share from the N1.77 per share in Q1 2020

Ecobank recorded an 18 percent increase in its EPS to N84 kobo per share to N71 kobo per share in the period under review.

Total asset

The banks recorded a meagre increase in total asset in the Q1 compared to December 2020.

Ecobank grew its total asset by a meagre 0.97 percent to N10.4 billion in the Q1 compared to N10.3 billion recorded as of December 2020.

GTBank also grew its total asset by 1 percent to 4.99 billion in Q1 2021 compared to N 4.94 billion recorded as of December 2020.

Likewise, Stanbic’s total asset grew 4 percent to N2.5 billion in the Q1 from N2.4 billion in 2020.

Get real time updates directly on you device, subscribe now.