Bank Deposits Hit N21 Trillion in First Quarter, Reports CBN

Nigerian banks have recorded N21 trillion in deposits during the first quarter of 2024, according to the Central Bank of Nigeria (CBN).

Over the past 15 months, total deposits in Nigerian banks have soared to an impressive N136 trillion.

This notable increase reflects the growing trust of both individual and institutional depositors in the stability and reliability of Nigerian banks.

Audited reports and regulatory filings reveal a steady influx of funds, bolstering the financial health of the banking sector.

Big banks have been at the forefront of this growth. Zenith Bank, for instance, reported a significant rise in deposits from N8.98 trillion in 2022 to N16.78 trillion by March 2024.

Similarly, FCMB Group’s deposits surged from N2.07 trillion in 2022 to N3.7 trillion in the first quarter of 2024.

Newer players like Premium Trust Bank also demonstrated remarkable growth, with deposits skyrocketing by 382 percent, from N55 billion in December 2022 to N309 billion in March 2024.

Other major banks have shown similar positive trends. Fidelity Bank’s deposits increased from N2.58 trillion in 2022 to N4.02 trillion in 2023, reaching N4.71 trillion by the end of the first quarter of 2024.

United Bank for Africa (UBA) saw deposits grow from N10.86 trillion in 2022 to N14.9 trillion in 2023, hitting N18.4 trillion by March 2024.

Access Holdings experienced a significant jump from N11.3 trillion in 2022 to N19.8 trillion in 2023, and further to N24.7 trillion by March 2024.

Sterling Holding Financial Company’s deposits crossed the N2 trillion mark, reaching N2.15 trillion in Q1 2024, up from N1.4 trillion and N1.8 trillion in 2022 and 2023, respectively.

Guaranty Trust Holding Company (GTCO) also doubled its deposits from N4.6 trillion in 2022 to N9.2 trillion in the first quarter of 2024.

This surge in deposits reflects a broad-based public confidence in the Nigerian banking system.

Analysts attribute this growth to banks’ effective cost management and their ability to attract low-cost deposits, which are essential for maintaining liquidity and funding.

The Federal Reserve Board (FRB) highlights that deposits are a primary funding source for most banks, significantly affecting a bank’s liquidity and enabling them to fund loans and investments.

The expanding deposit base underscores the dynamism and effectiveness of Nigerian banks’ management and their growing contribution to the national economy.

The increase in deposits has also bolstered banks’ lending capacity. The CBN reports that loans and support to the private sector have risen by about N30 trillion over the past year.

Credit to the private sector rose to N74.31 trillion in May 2024, a 65.9 percent increase from N44.79 trillion in May 2023.

This growth in lending supports the national economic agenda and demonstrates the resilience of banks’ balance sheets.

Also, the profitability of Nigerian banks has seen significant growth, driven by business expansions and gains from foreign exchange revaluation, contributing more than N1 trillion in taxes to the government over the past two years.