The combined assets of 10 listed Nigerian banks rose by 22.5 percent in the first three months of 2024, data compiled by BusinessDay shows.
The lenders are Zenith Bank Plc, United Bank for Africa (UBA) Plc, Access Holdings Plc, FBN Holdings Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, Fidelity Bank Plc, Sterlings Financial Holdings Company Plc and Wema Bank Plc.
According to their financial statements, their total assets grew to N140.3 trillion in Q1 from N114.5 trillion as of December 2023.
Recent data by Afrinvest Limited shows that banks’ total assets are only 16.4 percent of the country’s $0.5 trillion Gross Domestic Product (GDP), well below the level for banks operating in countries with similar GDP.
Banks’ asset-to-GDP ratio in Egypt is 100 percent, 74 percent in South Africa, and 47 percent in Kenya.
In Brazil, whose economy is worth $1.9 trillion, bank assets as a percentage of GDP is 125 percent. The figure is 45 percent in Mexico with a GDP of $1.5 trillion and 104.6 percent in the Netherlands with a GDP of $1 trillion.
The low asset base of Nigerian banks relative to peers makes a compelling case for a recapitalisation exercise, according to Ike Chioke, group managing director of Afrinvest West Africa Limited.
Read also: Here are the Nigerian banks with highest investment securities holdings
“We looked at all the commercial banks in Nigeria today and all the non-interest banks. We see that based on the CBN capital requirement, there’s a need for the Nigerian commercial banks to get to N3.7 trillion to bolster the N1.9 trillion they currently have,” he said.
“Clearly, we have quite a lot of work,” Chioke added.
Further findings from the statements revealed that Access tops the list with total assets of N32.6 trillion as of March 2024, followed by UBA with N25.3 trillion and Zenith Bank with N24.3 trillion.
During the reviewed period, the lenders’ liabilities rose 22.7 percent to N123.6 trillion from N103 trillion.
A bank’s total assets represent the sum of everything it owns that has economic value. These assets are essential for the bank’s operations and revenue generation.
However, when total assets exceed total liabilities the result is a positive net equity or net worth.
In terms of growth rate in assets, GTCO recorded the highest increase of 35.4 percent followed by FBN Holdings with 27.2 percent and UBA at 22.8 percent.
Analysis of individual firms
GTCO
GTCO’s total assets stood at N13 trillion in the first three months of 2024, up 35.4 percent from N9.6 trillion as of December 2023.
The holding company recorded total liabilities which stood at N10.9 trillion from N8.2 trillion in the period reviewed.
Total equity amounted to N2 trillion from N1.5 trillion.
Read also: Nigerian banks submitting recapitalisation plans, central bank says
FBN Holdings
FBN recorded N21.5 trillion as its total asset in the first three months of 2024 from N16.9 trillion reported as of December 2023.
Total liabilities amounted to N19.6 trillion from N15.1 trillion and total equity grew by 11.7 percent to N1.9 trillion from N1.7 trillion.
UBA
UBA’s total assets grew by 11.8 percent to N25.3 trillion in the first three months of 2024 from N20.6 trillion as of December 2023.
The bank’s total liabilities increased to N22.7 trillion from N18.6 trillion in the period reviewed. UBA’s total equity amounted to N2.6 trillion from N1.9 trillion.
Access Holdings
Access Holdings’ total assets rose to N32 trillion in the first quarter of 2024, up 22.2 percent from N26.6 trillion as of December 2023.
The holding company’s total liabilities amounted to N30 trillion, a 23.5 percent increase from N24.5 trillion while its total shareholders’ fund rose to N2.4 trillion from N2.1 trillion.
Sterling Holdings
Sterling Holdings recorded N3 trillion as its total asset in the first three months of 2024, up 20 percent from N2.5 trillion as of December 2023.
Total liabilities amounted to N2.8 trillion from N2.3 trillion and total equity grew to N168 billion from N183 billion.
Zenith Bank
Zenith Bank’s total assets rose to N24.3 trillion in the first three months of 2024, a 19.1 percent increase from N20.4 trillion as of December 2023.
The bank’s total liabilities amounted to N21.4 trillion from N18 trillion.
Total shareholders’ equity amounted to N2.8 trillion in the period under review from N1.4 trillion.
Read also: 10 Nigerian banks’ investment securities holdings up 44% in three months
Wema Bank
Wema Bank’s total assets amounted to N2.6 trillion in Q1, up 18.2 percent from N2.2 trillion as of December 2023
The bank’s total liabilities grew by 14.3 percent to N2.4 trillion from N2.1 trillion. Equity attributable to equity holders of the bank stood at N148.9 billion from N139 billion in the period reviewed.
FCMB
First City Monument Bank’s total assets increased to N5.2 trillion in the first three months of the year, an 18.2 percent increase from N4.4 trillion as of December 2023.
The bank’s total liabilities stood at N4.7 trillion, up 20.5 percent increase from N3.9 trillion.
The bank’s total equity grew by 7.4 percent to N494 billion from N460 billion in the comparable period.
Stanbic IBTC Holdings
Stanbic IBTC Holdings’ total assets stood at N5.9 trillion in Q1, up 15.7 percent from N5.1 trillion as of December 2023.
Total liabilities amounted to N5.4 trillion, up 17.4 percent increase from N4.6 trillion. The holding company recorded total equity of N544 billion, up 7.5 percent from N506 billion in the comparable periods.
Fidelity Bank
Fidelity Bank’s total assets amounted to N7 trillion in Q1, a 12.9 percent increase from N6.2 trillion as of December 2023.
The bank’s total liabilities stood at N6.5 trillion, up 14 percent increase from N5.7 trillion. Similarly, the bank’s total equity grew to N467 billion from N437 billion during the reviewed period.
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