Nigerian Banks Surge with 214% Profit Growth, Totaling N2.06tn in 2023

Six Nigerian leading banks report a 214% surge in profit to N2.06 trillion in the nine months ended September 2023.

This impressive performance comes despite the economic challenges and uncertainties prevailing in the country.

The banks include Access Holdings Plc, Zenith Bank International, United Bank for Africa, Guaranty Trust Holding Company Plc, FBN Holdings, and Stanbic IBTC Holdings.

Among these, Zenith Bank stood out with a 412.55% increase in total comprehensive income to N647.74bn.

United Bank for Africa followed closely with a 287.18% rise in profits, now at N109.25bn.

Guaranty Trust Holding Company, FBN Holdings, and Stanbic IBTC also posted significant profit increases of 181.87%, 159%, and 97.96%, respectively.

Access Holdings, while showing a comparatively lower increase at 82.92%, still reached a commendable N250.44bn in profit.

These exceptional results stem from a positive trend following the Central Bank of Nigeria’s harmonization of the currency market in June, providing a favorable environment for the banking sector.

This move came at a time when the real sector was grappling with higher borrowing costs and foreign exchange losses.

Despite prevailing macroeconomic challenges in Nigeria, the banking sector remains robust. Lending continues to be a primary source of income for banks, with their liquidity largely unaffected by the broader economic situation.

According to economic analysts, the banking sector’s strength is instrumental in bolstering the economy, with lending activities anticipated to yield positive results in the future.

The value of bank assets also saw substantial growth, increasing by 43.57% to N83.55tn, with expanded loan books playing a significant role in driving the rise.

These exceptional performances have showcased the resilience and adaptability of Nigerian banks, reinforcing their pivotal role in the nation’s economic stability and growth.