BusinessDay

Commercial banks’ deposits jump 20.20% in Q1 2022

Nigerian banks received a combined deposit of N48.64 trillion from customers across various account types in the first quarter (Q1) of 2022, which was 20.20 percent above N40.47 trillion collected in the comparable period of 2021. Analysis of the total deposits received from customers based on account type for the Nigerian lenders revealed that 47 percent, equivalent to N22.87 trillion, were paid into the current account.

When disaggregated, customers deposited N10.38 trillion in term account, and N12.16 trillion in savings account across the banks listed on the Nigeria Exchange Limited (NGX). According to Gloria Fadipe, head of research at FCMB, deposits represent bank funds used in making money. She further noted that deposits have a direct relationship with bank loans, stating that “if deposits increase, loans increase”.

Fadipe explained that based on account types, it is better for banks to have cheap deposits: current accounts, and savings accounts.
“Savings account attracts less than one percent and people don’t put their mind to it because they withdraw too many times, but current account attracts more. The higher the bank capital ratio, the lower the bank’s total funding cost and the more profitable the bank, and banks always try to ensure that the capital is growing. So, if the deposits that are growing are either in savings or current deposits, you can see the effect in the cost of funds which would be positive because it will reduce,” she added.

Innocent Unah, executive director at Graham Lynch Capital said “positive growth in deposits can mean either the banks’ customers are growing in number, existing customers are depositing more money with the bank, the bank is generating deposit customers from its competitors, or more previously unbanked population are being banked now.”
Unah explained that the implication is that banks will be able to create more loans and support businesses and generate more earnings as a result of increased risk assets.
The banks registered positive growth in customer deposits, with Ecobank leading the pack with an 11.11 percent increase to N8.20 trillion, followed by Access Bank with a 31.87 percent increase to N7.49 trillion, and Zenith Bank with a 27.87 percent growth to N7.25 trillion in the first quarter of 2022.

Ecobank

Ecobank Transnational Incorporated recorded deposits from customers amounting to N8.20 trillion in the first quarter of 2022, the highest reported by Nigerian banks in the period under review. The bank’s total customer deposits represent an 11.11 percent uptick from N7.38 trillion recorded in the comparable period of 2021.
Data extracted from the bank’s unaudited financial statements as provided by the Nigerian Exchange Limited revealed that based on account types, current deposits contributed the bulk to total customer deposits by 63.78 percent amounting to N5.23 trillion in the quarter. Other account types such as term deposits and savings deposits amounted to N1.52 trillion, and N1.44 trillion respectively in Q1 2022.

Access Bank

The second-highest on the list is Access Bank, accounting for N7.49 trillion of customer deposits in the first quarter of 2022, showing a 31.87 percent growth from N5.68 trillion recorded in the first quarter of 2021. Based on account types, term deposits contributed the bulk in the quarter accounting for 42.99 percent of customers’ deposits.
In the first quarter of 2022, term deposits amounted to N3.22 trillion, while savings deposits and current deposits amounted to N2.76 trillion and N1.52 trillion respectively.

Zenith Bank

Total deposits from customers recorded by Zenith Bank in the first three months of 2022 amounted to N7.25 trillion, a 27.87 percent increase from N5.67 trillion recorded in the first three months of 2021. A breakdown of the customers’ deposits by the bank showed that current deposits contributed the highest, accounting for 55.45 percent of the total deposits from customers.

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Current deposits amounted to N4.02 trillion, term deposits amounted to N537 billion, and savings deposits amounted to N1.28 trillion in the first quarter of 2022.

United Bank for Africa (UBA)

The deposits UBA recorded from customers amounted to N6.65 trillion in the first quarter of 2022. This is a 14.85 percent uptick from N5.79 trillion the bank recorded in the comparable period of 2021. Based on account types, current deposits accounted for the largest chunk of the total customer deposits by 59.55 percent amounting to N3.96 trillion in the first quarter of 2022. Term deposits and savings deposits amounted to N962 billion and N1.73 trillion in Q1 2022.

First Bank of Nigeria (FBN)

First Bank reported an increase in deposits from customers by 20.39 percent to N6.14 trillion in the first quarter of 2022, up from N5.10 trillion recorded in the same quarter last year. Based on account types, current deposits amounted to N2.13 trillion, accounting for 34.69 percent of the total customers’ deposits in Q1 2022. Term deposits and savings deposits amounted to N1.17 trillion and N1.85 trillion in the first quarter of 2021 respectively.

Guaranty Trust Holding Company (GTCO)

GTCO reported a rise in customer deposits by 12.50 percent to N4.05 trillion in March 2022 from N3.60 trillion in March 2021. The financial services provider recorded the highest customer deposits in the current account deposits segment which amounted to N2.27 trillion in the first quarter of 2022, accounting for 56.05 percent of total deposits from customers. Term deposits and savings deposits in the quarter amounted to N566 billion and N1.21 trillion respectively.

Fidelity Bank

Deposits from customers recorded by Fidelity bank in the first quarter of 2022 amounted to N2.07 trillion, an 18.29 percent increase from N1.75 trillion in the first quarter of 2021. Based on account types, current deposits amounted to N758 billion, accounting for the largest chunk by 36.62 percent. Term deposits and savings deposits amounted to N395 billion and N475 billion in the first quarter of 2022 respectively.

First City Monument Bank (FCMB)

FCMB reported an increase in deposits from customers by 18.94 percent amounting to N1.57 trillion in the first quarter of 2022, as against N1.32 trillion in the comparable period of 2021. Based on account types, the bank recorded the highest customer deposits from current deposits accounting for 42.93 percent in the first quarter. Current deposits amounted to N674 billion, term deposits amounted to N475 billion, and savings deposits amounted to N423 billion in the quarter.

Union Bank

Data extracted from unaudited financial statement provided by the Nigerian Exchange Limited (NGX), showed that Union Bank recorded a 16.96 percent increase in deposits from customers to N1.31 trillion in March 2022 as against N1.12 trillion in March 2021.
The financial services provider recorded the most customer deposits from current account holders, with current deposits accounting for 39.24 percent of the total deposits from customers in the period under review. Current deposits amounted to N514 billion, term deposits amounted to N399.64 billion, and savings deposits amounted to N399.61 billion in the first quarter of 2022.

Sterling Bank

Sterling Bank recorded an increase in deposits from customers by 16.35 percent to N1.21 trillion in the first quarter of 2022, from N1.04 trillion previously recorded in the corresponding period of 2021.
Based on account types, the current deposit accounted for the highest chunk by 55.29 percent amounting to N669 billion, while term deposits and savings deposits amounted to N227 billion and N208 billion respectively in the first quarter of 2022.

Stanbic IBTC

Stanbic IBTC’s deposits from customers amounted to N1.20 trillion in the first quarter of 2022, representing a 38.42 percent growth from N867 billion recorded in the corresponding quarter of 2021.
Based on account types, current deposits accounted for 50.08 percent, savings deposits accounted for 12.75 percent, and term deposits accounted for 22.50 percent of total customer deposits in the period, amounting to N601 billion, N153 billion, and N270 billion respectively.

Wema Bank

Wema Bank reported an increase in deposits from customers by 26.88 percent to N1.01 trillion in the first three months of 2022, from N796 billion in the first three months of 2021.
The financial services provider recorded the most deposits from term deposits which accounted for 53.66 percent of the total customer deposits in the period under review. Its term deposits for the first quarter amounted to N542 billion, while savings deposits amounted to N146 billion, and current deposits amounted to N256 billion.

Unity Bank

Unity Bank reported customer deposits of N379 billion in the first quarter of 2022, an 8.91 percent increase from N348 billion reported in the corresponding period of 2021.
Its current deposits accounted for the most at 39.31 percent, amounting to N149 billion in the period under review. Savings deposits and term deposits in the period amounted to N87 billion and N98 billion respectively.

Jaiz Bank

Jaiz bank recorded customer deposits of N114 billion in the first quarter of 2022, with current deposits accounting for 100 percent. The amount recorded is a whopping 31.03 percent increase from N87 billion in the first quarter of 2021.

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