Top Five Nigerian Banks Post ₦17.3 Trillion Gross Earnings Amid Record Profits
LAGOS, Nigeria — Nigeria’s banking sector demonstrated remarkable resilience in 2024, with the top five commercial banks collectively reporting ₦17.3 trillion in gross earnings and ₦5.1 trillion in pre-tax profit, according to audited financial statements published on the Nigerian Exchange (NGX). The results reflect a surge in interest income, non-interest revenue, and strategic asset growth, even as macroeconomic challenges persisted.
Key Financial Highlights
- Pre-Tax Profit: The five banks—United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), Zenith Bank, First Bank Holdings (First Holdco), and Stanbic IBTC Holdings—collectively recorded a 69.5% year-on-year increase in pre-tax profit, rising from ₦2.69 trillion in 2023 to ₦4.56 trillion in 2024.
- Post-Tax Profit: Net profit after tax jumped to ₦3.78 trillion, up 66.2% from ₦2.27 trillion in 2023.
- Total Assets: Combined assets surged to ₦108.21 trillion, crossing the ₦100 trillion mark for the first time, driven by loan book expansion, deposits, and retained earnings.
Individual Bank Performance
- UBA:
- Gross Earnings: ₦2.3 trillion (interest income alone).
- Post-Tax Profit: ₦766.5 billion, a 26.14% increase from 2023.
- Total Assets: ₦30.3 trillion, up 46.8% year-on-year.
- GTCO:
- Pre-Tax Profit: ₦1.27 trillion, doubling its 2023 figure.
- Post-Tax Profit: ₦1.02 trillion, nearly 88% higher than 2023.
- Dividend: Announced a final dividend of ₦7.03 per share, bringing the total payout to ₦8.03 per share for 2024.
- Zenith Bank:
- Post-Tax Profit: ₦1.03 trillion, a 52.5% increase from 2023.
- Assets: Grew to ₦26.5 trillion, bolstered by deposits and investment securities.
- First Holdco:
- Pre-Tax Profit: ₦862.39 billion, up 142% from 2023.
- Post-Tax Profit: ₦736.7 billion, more than doubling its 2023 performance.
- Stanbic IBTC:
- Post-Tax Profit: ₦225.3 billion, a 60.23% increase.
- Assets: Expanded to ₦6.91 trillion, driven by customer deposits and treasury operations.
Drivers of Growth
- Interest Income: Higher lending rates and expanded loan portfolios contributed significantly. For example, UBA’s interest income soared to ₦2.3 trillion, up 120% year-on-year.
- Non-Interest Revenue: Fees, commissions, and foreign exchange gains played a critical role. GTCO reported a 91.66% increase in fees and commission income.
- Naira Depreciation: Analysts noted that currency devaluation amplified dollar-denominated earnings, though profits in dollar terms remain subdued compared to pre-2023 levels.
Sector-Wide Implications
The results underscore the banking sector’s adaptability amid Nigeria’s economic headwinds, including inflation and currency volatility. However, experts caution that the gains may not fully reflect underlying economic realities, as higher interest rates and regulatory pressures loom.
Investor Response
Shareholders welcomed the performance, with UBA proposing a ₦3.00 per share dividend and GTCO’s total payout reaching ₦8.03 per share. The NGX Banking Index rose 2.1% following the announcements, reflecting renewed investor confidence.
