Q3 2023: Zenith Bank Leads UBA, GTCO, Two Others In N2.01trn PBT
The banking industry is reaping from the unification of foreign exchange as Zenith Bank Plc, together with four others have generated N2.01 trillion profit before tax in the third quarter (Q3) ended September 30, 2023, an increase of 163 percent from N763.3 billion reported in Q3 2022.
The remaining four banks are Access Holdings Plc, United Bank for Africa Plc (UBA), FBN Holdings, and Guaranty Trust Holdings Plc (GTCO).
Unlike the banking sector where operators are recording huge profits, the situation in the foreign exchange market has worsened in the real sector where six major companies have tumbled from profit position, recording a combined loss of N296.1 billion loss.
Notore Chemicals, Dangote Sugar Refinery, Cadbury Nigeria Plc, Nigerian Breweries Plc, International Breweries Plc, and Nestle Nigeria Plc have all dropped into the red zone, reeling in a combined loss of N296.1 billion.
This contrasted sharply with the banking sector where the top five banks have altogether reaped a huge N2.01 trillion profit before tax (PBT) in the same period.
InsidebusinessNG gathered that Zenith Bank in the period became the most profitable financial institution in Nigeria when its profit before tax increased to N505.04 billion in Q3 2023, representing an increase of 149.34 percent from N202.55 billion reported in Q3 2022.
The Zenith Bank in a report disclosed that it achieved a year-on-year (YoY) growth in gross earnings of 114 per cent from N620.6 billion reported in Q3 2022 to N1.33 trillion in Q3 2023.
“This triple-digit growth in the topline also enhanced our bottom line as the Group recorded a 149 per cent YoY increase in profit before tax, growing from N202.5 billion in Q3 2022 to N505 billion in Q3 2023. Profit after tax also grew by 149 per cent from N174.3 billion to N434.2 billion in the same period. The growth in the topline arose from both interest income and non-interest income, says the bank.
“The profit growth similarly is attributable to the twin effects of the improvement in interest and non-interest income. Interest income increased because of the growth in risk assets as well as effective pricing thereon. The non-interest income growth is largely driven by the revaluation gain due to the unification of exchange rates during the year,” the bank added.
On the trail of Zenith Bank is UBA with N502.09billion profit before tax in Q33 2023, a growth of 262.5 percent from N138.49billion reported in Q3 2023, while GTCO announced N433.2billion profit before tax in Q3 2023, a growth of 155 percent from N169.7billion in Q3 2022.
The likes of Access Holdings reported N294.42billion profit before tax in Q3 2023, a growth of 100 percent from N147.06 percent in Q3 2022, while FBN Holdings declared N270.33billion profit before tax, an increase of 156.3 percent from N105.49billion in Q3 2022.
The Group Managing Director, UBA, Oliver Alawuba, remarked that the Group has once again shown sustainable and remarkable improvement in key performance metrics over the period, reflecting its commitment to delivering value to shareholders and various stakeholders.
He said, “This significant improvement is attributed to the impact of FX harmonization, efficient balance sheet management, and our service-focused strategies. Our banking operations outside Nigeria have continued to capture the broader business opportunities inherent across, and beyond Sub-Saharan Africa.
Speaking on plans and strategy to sustain and surpass performance at the end of the year, the GMD explained that the bank will continue to leverage its customer-centric strategies, speed to market, and innovation to consolidate market share in its various jurisdictions, as he pledged the bank’s commitment towards expanding and deepening digital and other transactional banking offerings while building strategic alliances to take advantage of emerging opportunities in due time.
“Looking ahead, we are optimistic that the growth trajectory will be sustained in the final quarter of the year as we remain focused on consolidating the gains achieved so far in delivering enhanced returns to our shareholders,” Alawuba pointed out.
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