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10 banks see net interest income climb to N3.9bn

10 banks see net interest income climb to N3.9bn

The net interest income of 10 Nigerian listed banks grew by 74 percent to N3.92 billion last year from N2.25 billion in 2022, data compiled by BusinessDay shows.

The 10 lenders are Zenith Bank Plc, United Bank for Africa (UBA) Plc, Access Holdings Plc, FBN Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc, Wema Bank Plc and Sterling Financial Holdings Company Plc.

The latest financial statements of the lenders show that Zenith Bank, UBA, and Access Holdings recorded the most net interest income of N736.2 billion, N707.54 billion, and N695.4 billion respectively.

Read also: Nigerian banks set for aggressive dividend payouts amid new capital rules – EY

“Banks’ net-interest income, which is the core income from loans and advances to customers, investment securities and cash and cash balances, are mostly driven by interest rate hikes,” Tesleemah Lateef, a banking analyst at Cordros Securities Limited, said.

“A loan is given to customers which is backed by the interest rate during the period. At the current interest rate, it is expected that banks reprice assets, which is to increase the rate to be more beneficial to them,” she added.

Zenith Bank recorded the highest net-interest income growth of 100.8 percent followed by Access Holdings with 93.4 percent, UBA (86.4 percent), Fidelity Bank (81.9 percent), and Wema Bank (69.1 percent).

Analysis of individual firms

Zenith Bank

Zenith Bank’s net interest income surged to N736.2 billion in 2023 from N366.6 billion in 2022.

The bank recorded an after-tax profit increase of 202.3 percent to N676.9 billion from N223.9 billion. Its 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 and 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.

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

Access Holdings

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

Its 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 and earnings per share increased to N17.23 from N4.46.

Access Holdings, formerly (Access Bank Plc), is a financial institution 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’s net interest income surged to N707.5 billion in 2023 from N379.5 billion in 2022. The group recorded a 257 percent growth in after-tax profit to N607.7 billion from N170.3 billion.

Its 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 and 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.

Fidelity Bank

Fidelity Bank’s net interest income grew to N277.8 billion in 2023 from N152.7 billion in 2022. The bank’s after-tax profit grew by 117 percent to N101.3 billion from N46.7 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 and earnings per share increased to N3.17 from N1.61.

The 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, the central bank and national banking regulator.

Wema Bank

Wema Bank’s net interest income grew to N91.7 billion in 2023 from N54.2 billion in 2022. The bank recorded a 214.9 percent growth in after-tax profit to N35.9 billion from N11.4 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 and earnings per share increased to N2.79 from N88.3.

Wema is a Nigeria-based bank that offers retail banking, small and medium-sized enterprise 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.

Read also: These Nigerian banks have the highest capital importation

GTCO

GTCO’s net interest income surged to N436.7 billion in 2023 from N259.3 billion in 2022. The holding company recorded a 219 percent growth in after-tax profit to N539.7 billion from N169.2 billion.

Its 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 and earnings per share increased to N19.07 from N5.95.

GTCO is a financial services institution 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.

Stanbic IBTC Holdings Company

Stanbic IBTC Holdings’ net interest income grew to N175.2 billion in 2023 from N113.1 billion in 2022. Its after-tax profit rose to N140.6 billion from N80.7 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 and earnings per share grew to N10.62 from N6.02.

Stanbic IBTC Holdings is an integral entity within the financial landscape of Nigeria, and 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.

FBN Holdings

FBN Holdings’ net interest income surged to N530 billion in 2023 from N363.2 billion in 2022. The holding company recorded zero percent growth in after-tax profit to N309.9 billion from N310 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 and earnings per share increased to N8.56 from N3.74.

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

The company 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.

FCMB Group

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

Its 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 and earnings per share increased to N4.82 from N1.56.

FCMB 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.

Sterling Financial Holdings Company

Sterling Financial Holdings Company’s net interest income grew to N90.3 billion in 2023 from N76.4 billion in 2022.

The holding company’s after-tax profit grew by 11.4 percent to N21.5 billion from N19.3 billion. Its net fee and commission income grew to N26.3 billion from N22.4 billion.

Other revenue increased to N11 billion from N10.6 billion and earnings per share increased to N0.75 from N0.67.

Sterling Financial Holdings Company is a Nigerian financial holding company with two primary subsidiaries: Sterling Bank Plc, which offers commercial banking services, and Alternative Bank Limited, which operates as a non-interest banking business.