Here are banks with the fastest growing assets in 2023

The Nigerian banking sector is a dynamic and ever-evolving landscape. In 2023, several banks have distinguished themselves by witnessing impressive asset growth, outpacing their competitors and setting themselves up for future success.

Data obtained from the banks’ financial statements showed Ecobank Transnational Incorporated recorded the fastest growth in assets. The bank’s total assets grew by 84.6 percent to N21.4 trillion in the first nine months from N13.5 billion in the same period of last year.

United Bank of Africa recorded 74.3 percent, Zenith (60.1 percent), Access Holdings (59.2 percent) and Stanbic IBTC Holdings (58.3 percent).

Others are Wema Bank (49.3 percent), Guaranty Trust Holding Company, (48.4 percent), FBN Holdings (46.8 percent), Fidelity (42.4 percent) and First City Monument Bank Group (32.4 percent).

Unity bank recorded a negative growth rate of 21.7 percent

These banks posted a combined total assets value of N115.9 trillion by the end of September 2023, up from N72.5 trillion in the same period of 2022.

“The obvious reason for the increase in assets is due to an increase in loan books and investment securities,” Sesan Adeyeye, an analyst at ARM Securities Limited, said.

Bank assets refer to the things owned by a bank that help bring value, generally more specific to money-related assets and interest. Bank assets can range from investments to physical assets to loans.

Loans and advances to customers constitute fundamental banking activities, directly bolstering bank assets as the disbursed funds integrate into the bank’s portfolio. The rise in loan volume results in an expanded asset base.

Within investment securities, banks allocate a portion of their funds to securities such as bonds and government treasury bills. Although not a direct form of lending, these investments contribute to the asset side of the balance sheet. However, their impact on asset growth maintains a direct correlation.

Olumide Sole, research analyst at Vetiva Capital Management Limited, said the devaluation experienced in the second quarter of 2023 played a role in the increased asset value for banks.

“The devaluation, benefiting from the naira devaluation, affected the banks’ balance sheets and liabilities denominated in foreign currency, leading to an overall rise in their asset value when reported in naira,” Sole said.

Here’s a spotlight on some of the Nigerian banks with the fastest-growing assets in 2023.

Bank Analysis

Access Holdings

Access earned a spot as the largest bank in Nigeria by total assets in the first nine months of 2023, amounting to N21.41 trillion from N13.45 billion recorded in 2022.

Notably, loans and advances to customers dominated, amounting to N6.71 trillion, followed by investment securities at N4 trillion, among other key line items.

Ecobank Transnational Incorporated

Ecobank recorded the second fastest growth of 84 percent in terms of assets in the first nine months of 2023

Ecobank’s total asset value for the period amounted to N20.69 trillion in the period under review from N11.21 trillion recorded in the same period of 2022.

The primary contributors were loans and advances to customers at N7.89 trillion, followed by investment securities at N4.96 trillion, and cash and balances with the central bank at N1.52 trillion, among other items.

Zenith Bank

Zenith’s total asset value for the period amounted to N18.16 trillion, from N11.34 trillion recorded in the same period of 2022.

The major components include loans and advances at N5.78 trillion, cash and bank balances with central banks at N3.14 trillion, and investment securities at N2.29 trillion, among other line items.