By ADEBISI ADEMOLA.
Four of the 16 quoted banks on the Nigerian Stock Exchange (NSE) have recorded a profit increase of about 37 per cent for the first six months of 2018, InsideBusiness Online can report.
This amount represents N70.3 billion reported by the quartet of FCMB, Ecobank, Union Bank and Wema in the first half of 2018 compared to N51.12billion profit recorded by the same banks in the same period of 2017.
Details of the results showed that all the considered four bank reported increase in profit with First City Monument Bank Group Plc, reporting the most significant increase by percentage.
Analysts have said the increase in the performance of the banks was as a result of more prudent management of their activities as regarding reduction in impairment losses and increasing gross earnings.
Statistics gathered by our correspondent showed that First City Monument Bank Group’s profit soar by 89.7 per cent to N5.7 billion in six months of 2018 which the management attributed to improved performance in application of wealth. The bank reported N3 billion in the first half of 2017.
“The improved performance reflects the improving performance of the bank, as well as, the effects of diversification through our investments in asset and wealth management”, noted the FCMB Group management.
The group adds further that, “Barring any unforeseen circumstances, we see improved operating performance in the second half of 2018, based on the stabilising macro-economic and capital markets environment, declining cost of funds for the bank, and the growing contributions of our asset and wealth management division.”
Ecobank Transnational Incorporated Plc trailed with 36.6 per cent increase in profit to N51.6 billion from N37.7 billion reported in six months of 2017.
Wema Bank Plc, with a profit N1.57 billion, came next, showing a 28.8 per cent rise compared to N1.22billion profit in June last year, while, Union Bank of Nigeria Plc followed, rising by 24.5per cent from N9.2 billion to N11.46 billion in the period under consideration.
The Acting Chief Executive Officer, Wema Bank, Mr. Ademola Adebise, said, “With these half-year results, we believe we are on track to deliver on our commitments to shareholders at the beginning of the year.”
Also, The Chief Executive Officer, Union Bank of Nigeria, Mr. Emeka Emuwa, said, “In the first half of the year, we have continued to see positive results from our efficiency and productivity drive. Across all our business lines, we witnessed strong underlying performance, translating into improved earnings. We continue to focus on the recovery of non-performing loans.
“The Group continues to demonstrate its ability to deliver strong results notwithstanding a competitive and challenging operating environment.
“In the second half of the year, we will continue to focus on productivity, leveraging our enhanced platform to deliver best-in-class services to our customers and taking advantage of targeted opportunities across business lines and geographies.”
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