It may not be a good year for banks in the stock market, but they are finding much luck elsewhere, in their P & L statement. In the first 9 months of the year, Tier 1 banks earned about N521.7 billion, about N66 billion more than they achieved in the same period last year.
Zenith and GTBank remained the industry leader in terms of profit generated. The two banks earned a combined profit of N297.6 billion during the first 9 months of the year, accounting for up to 57 percent of the profit generated by the 5 Tier 1 banks.
Access and UBA however led the industry by earnings growth over the past year. The two banks contributed about 72 percent of the earnings growth seen in the Tier 1 banks space this year, as Access reported earnings growth of N27.8 billion while UBA grew earnings by N20 billion so far this year.
First Bank showed much improvement this year, growing earning by 15 percent while its non-performing loans continued its downward trend, rounding up what was a brilliant trimester for Nigeria’s largest banks.
Access Bank grew its gross earnings increased by 36.89 percent from N375.230 billion recorded in Q3 2018 to N513.656 billion in Q3 2019. Its profit before tax grew by 46.73 percent from N70.268 billion in Q3 2018 to a record of N103.104 billion in Q3 2019. Also profit after tax, rose by 44.23 percent from N62.911 billion recorded in Q3 2018 to a record of N90.740 billion in Q3 2019.
UBA had its gross earnings increase of 14.23 percent from N375.335 billion in Q3 2018 to a record of N428.742 billion in Q3 2019. Profit before tax increased by 24.17 percent from N79.111 billion in Q3 2018 to a record of N98.233 billion in Q3 2019. Also, profit after tax rose by 32.30 percent from N61.698 billion in Q3 2018 to a record of N81.628 billion in Q3 2019.
First Bank is next in line with gross earnings decrease of 1.05 percent from N430.759 billion in Q3 2018 to a record of N426.268 billion in Q3 2019. Its profit before tax increased by 16.9 percent from N51.340 billion in Q3 2018 to a record of N60.029 billion in Q3 2019. Also, profit after tax increased by 15.33 percent from N44.947 billion in Q3 2018 to a record of N51.836 billion in Q3 2019.
GTBank follows whose gross earnings decreased by 3.17 percent from N334.762 billion in Q3 2018 to a record of N324billion in Q3 2019. Profit before Tax grew by 3.90 percent from N164.246 billion recorded in Q3 2018 to N170.652 billion recorded in Q3 2019. Also, profit after tax rose by 3.35 percent from N142.224 billion recorded in Q3 2018 to a record of N146.990 billion record of N146.990 billion in Q3 2019.
Zenith Bank remained Nigeria’s most profitable bank, capping a fine performance in as at Q3 this year. The bank’s gross earnings increased by 4 percent from N474.607 billion recorded in Q3 2018 to N491.268 billion in Q3 2019. Profit Before Tax (PBT) grew by 5 percent from N167.307 billion in Q3 2018 to a record N176.183 billion in Q3 2019. Also, profit after tax rose by 5 percent from N144.179 billion in Q3 2018 to N150.723 billion in Q3 2019.
Analysts expect that the banks will post earnings of around N695 billion by year end 2014. The NSE banking index has declined by around 24.5 percent in the past year, despite banks posting stronger financial performance.
IFEANYI JOHN
