Business a.m.
Recent data from the Central Bank of Nigeria (CBN) Money and Credit report has shown that Deposit Money Banks (DMBs) recorded a significant surge in demand deposits, commonly known as current accounts, from N26.688 trillion at the end of 2023 to N32.988 trillion in the first half of 2024, reflecting an impressive growth of N6 trillion or 23.6 percent within just six months.
The CBN Money and Credit data also revealed a steady increase in total demand deposits in the first half of 2024. In the first quarter, ending March, the total demand deposits stood at a noteworthy N28.862 trillion, reflecting an 8.1 percent increase from the N26.688 trillion recorded in December 2023.
A closer analysis of the CBN data revealed that Zenith Bank, one of the top banks in the country, posted a 69 percent growth in total deposits from N8.98 trillion in 2022 to N15.17 trillion in December 2023. This upward trend continued in the first quarter of 2024, with the bank recording a 11 percent increase in total deposits to N16.8 trillion.
The remarkable growth in deposits continued across the banking industry, with UBA reporting a significant growth from N10.86 trillion in 2022 to N14.9 trillion in 2023 and reaching N18.4 trillion in March 2024.Â
In addition, Access Holdings, another leading institution in the banking sector, witnessed a quantum jump in deposits, increasing from N11.3 trillion in 2022 to N19.8 trillion in 2023, and closing March 2024 at N24.7 trillion.
Similarly, FCMB Group’s total deposit has shown steady growth, climbing from N2.07 trillion in 2022 to N3.4 trillion in 2023 and reaching N3.7 trillion in the first quarter of 2024.
The strong performance extended to other notable players in the banking industry as Guaranty Trust Holding Company (GTCO) also recorded an impressive growth in deposits. Starting from N4.6 trillion in deposits in 2022, the bank’s total deposits soared to N7.55 trillion in 2023 and reached N9.2 trillion in the first quarter of 2024.
Sterling Holding Financial Company also crossed a significant milestone by surpassing the N2 trillion mark in deposits, reaching N2.15 trillion in the first quarter of 2024, from N1.4 trillion and N1.8 trillion in 2022 and 2023, respectively.
While the established giants continued to show impressive growth, some of the newcomers in the industry also delivered noteworthy performances. Premium Trust Bank, a national commercial bank that began operations in April 2022, recorded a 382 percent growth in deposit base, increasing from N55 billion in December 2022 to N265 billion in December 2023, and ending the first quarter of 2024 at N309 billion.
In a nutshell, the data is a clear indication that despite the persistent macroeconomic challenges, including inflationary pressures and increasing operational costs, that continue to impact both households and businesses, the banking sector in Nigeria has demonstrated its resilience and strength with a remarkable growth in demand deposits.
The substantial increase in demand deposits, analysts observed, signals a higher level of trust and confidence in the banking industry, even amidst a challenging economic landscape, reflecting the sector’s important role in providing stability and support to the overall economy.
Nigeria’s move to protect children from social media use