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FCMB, Fidelity Bank, Wema lead peers in net income growth

FCMB, Fidelity Bank, Wema lead peers in net income growth

FCMB Group, Fidelity Bank and Wema Bank emerged as the mid-sized lenders with the highest after-tax profit growth last year.

The three lenders saw their net incomes jump by 207.1 percent, 116.9 percent and 105.3 percent respectively, their financial statements show.

Stanbic IBTC Holdings recorded 74.2 percent growth in after-tax profit, while Sterling Financial Holding Company posted an 11.4 percent increase.

The five tier-2 banks recorded a cumulative 102 percent after-tax profit growth to N382.3 billion in 2023 from N189.2 billion in 2022.

The banks also recorded net interest income of N803.8 billion, up from N518.4 billion a year earlier.

Bank analysis

Stanbic IBTC Holdings

Stanbic IBTC Holdings recorded an after-tax profit of N140.6 billion in 2023, up from N80.7 billion in 2022.

The lender’s foreign exchange derivatives in its derivative assets surged to N429.2 billion from N23 billion.

Net interest income rose to N175.2 billion from N113.12 billion, while net fee and commission revenue increased to N110.3 billion from N91.1 billion.

Basic earnings per share surged to 1,062 kobo from 602 kobo.

Stanbic IBTC Holdings is a financial service holding company in Nigeria with subsidiaries in banking, stock brokerage, investment advisory, asset management, investor services, pension management, trustees insurance brokerage and life insurance businesses.

Fidelity Bank

Fidelity Bank’s after-tax profit increased to N101.3 billion in 2023 from N46.7 billion in 2022.

Its foreign exchange gain grew to N44.1 billion from N2.7 billion.

Net interest income surged to N277.8 billion from N152.7 billion, while net fees and commission income grew to N37.9 billion from N21.7 billion.

Basic and diluted increased to N316.55 per share from N161.32 per share.

Fidelity Bank 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 (CBN).

FCMB Group

FCMB Group’s after-tax profit grew to N95.5 billion in 2023 from N31.1 billion in 2022.

Its unrealised foreign exchange gains rose to N84.2 billion from N4.3 billion.

Net interest income surged to N177.4 billion from N122 billion, while net fee and commission income increased to N44.4 billion from N34 billion.

Basic and diluted earnings per share stood at N4.82 from N1.56.

FCMB Group operates as a holding company, which engages in the provision of banking and financial services to its corporate and individual customers. It operates through the following investment banking, asset management, SME banking, commercial banking, corporate banking, personal banking, institutional banking, treasury and financial markets.

Wema Bank

Wema Bank’s after-tax profit more than doubled to N23.4 billion in 2023 from N11.4 billion in 2022.

Its foreign exchange trading income increased to N814.6 billion from N242.1 billion.

Net interest income rose to N83.1 billion from N54.2 billion, while net fee and commission income increased to N25.1 billion from N16.6 billion.

Basic earnings per share rose to 218 kobo from 88.3 kobo.

Wema Bank is a Nigerian commercial bank licensed by the CBN.

Sterling Financial Holding Company

Sterling Financial Holding Company’s after-tax profit rose to N21.5 billion in 2023 from N19.3 billion in 2022.

Its foreign exchange loss widened to N4.6 billion from N166 million in 2022.

Net interest income rose to N90.3 billion from N76.4 billion, while net fees and commission income increased to N26.3 million from N22.4 million.

Basic earnings per share grew to 75 kobo from 67 kobo.

Sterling Bank Ltd. is a full-service national commercial bank licensed by the CBN. The bank provides services to individuals, small businesses, and large corporations.