BusinessDay analysis of emoluments received by 9 Nigerian banks’ directors for the period of nine months ended 2018 amounted to N4.5 billion.
A total of nine banks were analysed to include Guarantee Trust Bank (GTBank), Zenith Bank, Diamond Bank, First Bank, Wema Bank, Sterling Bank, Stanbic IBTC, Union Bank and Fidelity bank.
During the period, Zenith’s Directors’ emolument increased by 67 percent to N1 billion in September 2018 from N605 million as at September 2017. Stanbic IBTC and Wema Bank recorded an increase in directors’ emolument by 16 percent, and Wema to N338.20 billion and N23.35 billion respectively.
Some banks recorded growth in their net profit between 2017 and 2018, which may help justify increase in director’s emolument.
First bank on the other hand recorded a slight decline in its net profit by 0.23 percent to N44.9 billion from N45 billion in in September 2017. During the same period, director’s emolument declined by 9 percent to N1.8 billion from N2.03 billion, accounting for 4.1 percent of total net profit for the period.
However, some banks recorded impressive growth in net profit, but director’s emoluments declined during the period. These banks included GTBank, Sterling Bank, Union Bank and Fidelity bank.
GTBank recorded the biggest decline amongst others after it dipped 24 percent. While Union Bank declined 20 percent, Fedility Bank declined 4 percent, Sterling Bank dipped 3 percent respectively.
Furthermore, amongst deposit money banks that grew both their net profits and emoluments during period under study, Wema bank plc recorded the lowest emolument growth.
Wema Bank grew its net profit the highest by 73 percent from N1.5 billion to N2.6 billion. Meanwhile director’s emolument recorded for the period grew slightly by 4 percent.
Stanbic Ibtc came second on the chart recording a net profit growth of 59 percent to N59.7 billion from N37.6 billion. Meanwhile, director’s emolument increased by 16 percent to N338 million from N292 million.
