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Access Holdings, UBA, GTCO lead in profit growth

Access Holdings, UBA, GTCO lead in profit growth

Access Holdings Plc, United Bank for Africa (UBA) Plc, and Guaranty Trust Holding Company (GTCO) Plc are the three listed Nigerian banks that recorded the highest growth in after-tax profit last year, according to data compiled by BusinessDay.

According to the banks’ latest financial statements, Wema Bank Plc recorded 214.9 percent growth in after-tax profit, followed by FCMB Group Plc (207.1 percent), Zenith Bank Plc (202.3 percent), Fidelity Bank Plc (116.9 percent), Stanbic IBTC Holdings Plc (74.2 percent) and Sterling Financial Holdings Company Plc (11.4 percent). FBN Holdings recorded no growth during the period.

Read also: Nigerian banks can compete better with new capital base – S&P Global

Further analysis of the statements revealed that the banks recorded a combined after-tax profit of N3.15 trillion in 2023, a 158 percent growth from N1.22 trillion in the previous year.

Analysis of individual banks

Zenith Bank

Zenith Bank’s after-tax profit grew by 202.3 percent to N676.9 billion in 2023 from N223.9 billion in 2022. The bank’s net interest income surged to N736.2 billion from N366.6 billion.

Net fee and commission income dropped to N109.3 billion from N132.8 billion. Other operating income grew to N242.6 billion from N35.5 billion. Earnings per share increased to N21.55 from N7.14.

Zenith Bank is engaged in the business of commercial banking. The bank is engaged in the provision of banking and other financial services to corporate and individual customers. Its services include the granting of loans and advances, corporate finance, and money market activities. Its segments include corporate, public, retail banking, pension custodial services Nominee-Nigeria, and outside Nigeria Banking-Africa and Europe.

Access Holdings

Access Holdings’ after-tax profit grew by 305 percent to N619.3 billion in 2023 from N152.9 billion in 2022. The group’s net interest income surged to N695.4 billion from N359.6 billion.

Net fee and commission income surged to N207.8 billion from N145.7 billion. Other operating income grew to N33.07 billion from N26.8 billion. Earnings per share increased to N17.23 from N4.46.

Access Holdings formerly (Access Bank Plc) is one of the leading financial institutions offering banking products and services for the retail, private, corporate, and institutional and non-institutional sectors in Africa and Europe. The company offers solutions for corporate and investment banking, commercial banking, personal banking, and business banking.

UBA

UBA recorded 257 percent growth in after-tax profit to N607.7 billion in 2023 from N170.3 billion in 2022. The bank’s net interest income surged to N707.5 billion from N379.5 billion.

Net fee and commission income increased to N189.1 billion from N127.9 billion. Other operating income surged to N33.5 billion from N13.04 billion. Earnings per share grew to N17.49 from N4.84.

UBA is a financial services institution in Nigeria offering banking products and services to the personal, commercial, and corporate sectors. The company provides a full-service product offering ranging from transactional accounts, overdrafts, and mortgage finance to domiciliary deposits, treasury services, asset management services, bonds, money market deposits, and risk management solutions.

GTCO

GTCO recorded 219 percent growth in after-tax profit to N539.7 billion in 2023 from N169.2 billion in 2022. The group’s net interest income surged to N436.7 billion from N25.3 billion.

Net fee and commission income grew to N109.4 billion from N91.99 billion. Other income surged to N449.3 billion from N68.4 billion. Earnings per share increased to N19.07 from N5.95.

It is one of the leading financial services institutions in Nigeria with business operations in Cote D’Ivoire, Gambia, Ghana, Liberia, Kenya, Rwanda, Uganda, Sierra Leone, Tanzania, and the United Kingdom. The company provides banking products and services for the retail, commercial, and corporate banking sectors.

FBN Holdings

FBN Holdings recorded zero percent growth in after-tax profit to N309.9 billion in 2023 from N310 billion in 2022. Its net interest income surged to N530 billion from N363.2 billion.

Net fee and commission income grew to N171.8 billion from N117.9 billion. Other income dropped to N16.5 billion from N22.4 billion. Earnings per share increased to N8.56 from N3.74.

The group is a financial services institution in Nigeria offering banking products and services for the commercial, corporate, investment, and merchant banking sectors.

It also offers insurance products for individual and corporate clients and other financial services for merchant banking, asset management, investment and general trading, private equity, financial intermediation services, trusteeship, portfolio management, and discount house services for individual and corporate clients.

Read also: Nigeria’s big banks take lead in hunt for new capital

Stanbic IBTC Holdings

Stanbic IBTC Holdings’ after-tax profit rose to N140.6 billion in 2023 from N80.7 billion in 2022.

The holding company’s net interest income grew to N175.2 billion from N113.1 billion.

Net fee and commission revenue increased to N110.3 billion from N91.1 billion. Other income surged to N8.72 billion from N1.18 billion. Earnings per share grew to N10.62 from N6.02.

Stanbic IBTC, an integral entity within the financial landscape of Nigeria, operates under a robust structure with a primary function as a financial holding company. Incorporating on March 14, 2012, and listing on The Nigerian Exchange Group on November 23, 2012, it stands as a beacon of financial ingenuity and stability.

Fidelity Bank

Fidelity Bank’s after-tax profit grew by 117 percent to N101.3 billion in 2023 from N46.7 billion in 2022. The bank’s net interest income grew to N277.8 billion from N 152.7 billion.

Net fee and commission revenue increased to N277.8 billion from N152.7 billion. Other income surged to N46.7 billion from N7.05 billion. Earnings per share increased to N3.17 from N1.61.

Fidelity is a commercial bank in Nigeria headquartered in Victoria Island, Lagos. It is licensed as a commercial bank with international authorisation, by the Central Bank of Nigeria, the central bank and national banking regulator.

FCMB Group

FCMB recorded 207 percent growth in after-tax profit to N95.5 billion in 2023 from N31.1 billion in 2022. The group’s net interest income grew to N177.4 billion from N121.9 billion.

Net fee and commission income grew to N44.4 billion from N34.01 billion. Other revenue increased to N90.9 billion from N5.3 billion. Earnings per share increased to N4.82 from N1.56.

The group is a financial services institution offering products and services for the commercial, corporate, and institutional sectors in Nigeria and Europe. The company’s core portfolio is focused on investment banking, asset management, commercial banking, corporate banking, personal banking, institutional banking and treasury and financial markets.

Wema Bank

Wema Bank recorded 214.9 percent growth in after-tax profit to N35.9 billion in 2023 from N11.4 billion in 2022.

The bank’s net interest income grew to N91.7 billion from N54.2 billion.

Net fee and commission income grew to N24.9 billion from N16.6 billion. Other income increased to N15.5 billion from N2.89 billion. Earnings per share increased to N2.79 from N88.3.

The Bank is a Nigeria-based bank that offers retail banking, small and medium-sized enterprise (SME) banking, corporate banking, treasury, trade and financial advisory services.

Its segments include South-West, South-South, Abuja, and Lagos zones. Its business solutions include corporate banking, trade services, and e-banking. Its investments and loans include overdrafts, term loans, import finance facilities, finance lease facilities, and agricultural finance.

Sterling Financial Holdings Company

Sterling Financial Holdings Company recorded 11.4 percent growth in after-tax profit to N21.5 billion in 2023 from N19.3 billion in 2022. The holding company’s net interest income grew to N90.3 billion from N76.4 billion.

Net fee and commission income grew to N26.3 billion from N22.4 billion. Other revenue increased to N11 billion from N10.6 billion. Earnings per share increased to N0.75 per share from N0.67.

It has two primary subsidiaries such as Sterling Bank Plc, which offers commercial banking services, and Alternative Bank Limited, which operates as a non-Interest Banking business.