12 quoted banks grow profit by N28.7bn

May 23, 2022

TWELVE Nigerian banks have generated an impressive profitability growth of N28.7 billion in the first quarter (Q1) of 2022 over their 2021 profit after tax (PAT), amid hike in total operating expenses, global and domestic economic challenges.

This is according to an analysis of the first quarter performance of some of the major banks in Nigeria based on their reported earnings, as published in their unaudited first-quarter financial statements filed to the Nigerian Exchange (NGX).

Analysts from Cowry Assets Management Limited observed that the banks’ profit and loss figures showed 14.2 per cent increase in profit after tax to N283.77 billion in the quarter under review from N255.07 billion reported in Q1 2021.

The banks include; Zenith Bank, Ecobank Transnational, Access Holdings, United Bank for Africa (UBA), Stanbic IBTC Bank, Fidelity Bank, Sterling Bank, GuarantyTrust Holding Company (GTCO), Union Bank of Nigeria and First City Monument Bank (FCMB), JAIZ Bank and Wema Bank.

The 12 Nigerian banks reported N334 billion profit before tax (PBT) in the first quarter ended March 31, 2022, an increase of 13.7 per cent from N293.5 billion reported in the first quarter of 2021.

Further breakdown of the banks’ performance showed that Return on equity (ROE) for Access Bank stood at 19.80 per cent while that of UBA berthed at 19.11 per cent and 17.69 per cent for GTCO.

ROE is a financial ratio that shows how well a company is managing the capital that shareholders have invested in it.

To calculate ROE, one would divide net income by shareholder equity.

The higher the ROE, the more efficient a company’s management is at generating income and growth from its equity financing.

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