Six banks generate N3.9 trillion in earnings over six months

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Six banks generate N3.9 trillion in earnings over six months
Six banks generate N3.9 trillion in earnings over six months

The financial statements of eight deposit money banks have revealed a total gross earnings of approximately N3.9 trillion in the first half of the 2023 financial period.

These figures were obtained from their reports published on the Nigerian Exchange Limited’s website.

Zenith Bank, for instance, reported a remarkable 139% growth in gross earnings, increasing from N404.8 billion in H1 2022 to N967.3 billion in H1 2023.

The bank’s profit after tax also saw significant improvement, rising by 161.84% to N291.7 billion by the end of June 2023.

GTCO records 85% increase in gross earnings

Guaranty Trust Company (GTCO) experienced an 85% increase in gross earnings, with figures rising from N364.306 billion to N672.603 billion.

The bank’s profit after tax surged to N280.482 billion in H1 2023 from N77.557 billion in the corresponding period of 2022.

United Bank for Africa (UBA) achieved a remarkable 164% growth in gross earnings, reaching N981.78 billion as of June 2023, compared to N372.36 billion recorded in June 2022.

The bank’s profit after tax also increased by 437.8% over H1 2022, totaling N378.24 billion.

First Bank, Nigeria’s oldest bank, reported an 82.8% increase in gross earnings, rising to N656.6 billion in H1 2023 from N359.2 billion in the same period in 2022.

The bank’s profit after tax also climbed to N174.9 billion in H1 2023, compared to N53.3 billion the previous year.

Other top-tier banks that recorded growth in gross earnings in the first half of the year included Wema Bank (N89.09 billion), Fidelity Bank (N247.1 billion), Sterling Holding (N99.06 billion), and FCMB (N238.2 billion).

Collectively, these eight banks generated N3.9 trillion in the first six months of 2023.

An analysis of the banks’ financial statements revealed that the strong performance in the first half of the year was largely influenced by the devaluation of the naira, which followed the Central Bank of Nigeria’s decision to float the local currency.

For example, Zenith Bank’s interest income grew by 72%, reaching N415.4 billion, while trading gains increased by 21% to N103 billion during this period.

The liberalization of the foreign exchange market was a key factor driving growth in non-interest income, particularly due to significant revaluation gains.