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.
Read also: Nigerian banks remain resilient says CBN
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.
United Bank of Africa
UBA’s total asset value amounted to N16.24 trillion in the period under review from N9.32 trillion recorded in the same period of 2022.
Loans and advances to customers accounted for the most amounting to N4.93 trillion in the period under review, Cash and bank balance amounted to N4.03 trillion, investment securities at fair value through other comprehensive income amounted to N2.82 trillion, investment securities at amortised cost amounted to N3.13 trillion.
FBN Holdings
FBN reported a total asset value of N14.5 trillion for the first nine months of 2023, up from N9.85 trillion in 2022.
The primary contributors were loans and advances to customers at N5.34 trillion, investment securities at N2.35 trillion, and cash and balances with central banks at N2.33 trillion.
Read also: Nigerian banks’ investment securities grow 76% on naira devaluation
Guaranty Trust Holding Company
Guaranty Trust Holding Company’s total assets reached N8.62 trillion in the first nine months of 2023, reflecting an increase from N5.81 trillion in 2022.
Loans and advances to customers amounted to N2.22 trillion in the period under review, and cash and bank balances amounted to N2.3 trillion, investment securities, held at amortised cost, amounted to N1.30 trillion.
Fidelity Bank
Fidelity Bank reported total assets of N5.41 trillion as of September 2023, up from N3.8 trillion in the same period of 2022.
The major components include loans and advances to customers at N2.65 trillion, restricted balances with the central bank at N0.983 trillion, and cash and cash equivalents at N0.568 trillion.
Stanbic IBTC Holdings
Stanbic IBTC’s total asset value amounted to N4.67 trillion in the first nine months of 2023 from N2.95 trillion recorded in the same period of 2022.
Loans and advances to customers amounted to N1.76 trillion, Cash and Cash equivalent amounted to N1.25 trillion, financial investments amounted to N0.52 trillion.
First City Monument Bank Group
FCMB’s total asset value for the period under review amounted to N3.88 trillion from N2.93 trillion recorded in the same period of 2022.
Loans and advances to customers amounted to N1.59 trillion, investment securities amounted to N0.76 trillion, and restricted reserve deposits amounted to N0.62 trillion, among other line items.
Wema Bank
Wema Bank’s total asset value for the period amounted to N2 trillion from N1.3 trillion recorded in the same period of 2022.
Loans and advances to customers amounted to N661.3 billion, investment securities amounted to N578.1 billion, and Restricted deposits with CBN amounted to N454.2 billion.
Unity Bank
Unity Bank’s total asset value amounted to N0.42 trillion in the period under review from N0.54 trillion recorded in the same period of 2022.
Net Loans and advances to customers amounted to N0.223 trillion, Financial investments – Amortised Cost amounted to N0.59 trillion and Financial investments – FVOCI amounted to N0.50 trillion.
