UBA and Zenith have shown strength among the Deposit Money Banks (DMBs) in the country recording steady growth in gross earnings and profits, driven by their stronger financial structure.
The nine months report for the period ended September 30, 2015 showed that the commercial banks remained consistent in growth strategy against macroeconomic challenges with 14 listed on the Nigerian Stock Exchange (NSE) recording N28 trillion in total assets.
Loans & advances to customers and customers’ deposits are two major drives in banks increased total assets. This amount represents an increase of N1.17 trillion or four per cent compared to N27.27 trillion recorded by the same 14 banks in the close of December31, 2014.
Zenith bank according to its third quarter result is the only bank with N3 trillion assets. Its total assets moved upward from N3.75 trillion to N3.8 trillion in the period reviewed.
UBA led the pack in the Three Tier-1 banks with four percent increase in total assets from N2.76 trillion to N2.87 trillion as at tHe end of the third quarter to lead the category which has a total re its of N3 trillion total assets.
Facts of the results showed that Ecobank Transnational Incorporated Plc and First Bank Holding Company (FBHN) were the only financial institutions that marked over N4 trillion in total assets in nine months under review.
Pan-African Bank, Ecobank Transnational Incorporated Plc has the highest total assets in the nine months with N4.65 trillion as at September 2015 from N3.8 trillion, representing 21 per cent growth.
Loan & advances to customers and customers’ deposits contributed an average of 49 per cent and 68.8 per cent in total assets in ETI respectively.
First Bank Holding Company (FBHN) assets dipped by one per cent from N4.34 trillion to N4.3 trillion as at September 2015 as customers deposits and loans and advances to customers dropped by N51.3 billion and N270 billion in that order.
According to InsideBusiness findings, Guaranty Trust Bank Plc total assets rose by four per cent from N2.35 trillion to N2.46 trillion while Access Bank total assets gained 14 per cent to N2.4 trillion up from N2.76trillon recorded in the preceding year ending.
Statistics gathered by our correspondent showed that five Banks that include Diamond Bank Plc, Fidelity Bank Plc, Skye Bank Plc, Union Bank of Africa and Stanbic IBTC Holdings Plc crossed the N1trillion in total assets.
Diamond Bank total assets decline by nine per cent from N1.9 trillion as at December 2014 to N1.77 trillion as at September 2014 while Fidelity Bank also dropped by two per cent in total assets from N1.187 trillion to N1.159 trillion.
Further details financial institutions that made the list include Skye Bank that also dropped by seven per cent to N1.3 trillion from N1.4 trillion. On the flip side, Union Bank of Nigeria gained seven per cent in total assets to N1.08 trillion as against N1 trillion recorded as at December 2014 while Stanbic IBTC Holdings total assets rose by six per cent from N944.5 billion to N1 trillion.
Finance analysts said DMBs over the years have expanded business networks, investment on securities and Technology in order to increase customers’ deposits and profits. They noted that banks have also increased their liabilities from foreign investors and high network investors.
Banks with assets below N1 trillion are Sterling Bank Plc, Unity Bank Plc and Wema Bank Plc. Of the three Tier- II Banks, Sterling Bank has the strongest total assets that stood at N792.5 billion from N824.5 billion.
Unity Bank gained six per cent in total assets from N413 billion to N440 billion while Wema Bank total assets stood at N350.6 billion compared with N382.6 billion as at December 2014.
Banks stronger growth in total asset would not have been possible without the 2005 banking sector reforms. Before the reforms in the banking sector, the largest banks were only a fraction of the size of the top-five banks in South Africa with no Nigerian bank in the top-20 banks in Africa.
Today, six Nigerian banks that comprises of Guaranty Trust Bank, Access Bank, First Bank of Nigeria Holding Plc, ETI, United Bank for Africa and Zenith Bank are among the top-20 in Africa with branches from Senegal to Kenya and from London to South Africa.
These banking reforms also had major impacts on the nation’s economy by driving strong growth in the amount of bank credit provided to the private sector.