Top 4 Nigerian lenders  grow assets by 56% to N115 trn in nine months

• Disburse N33.6 trillion as loans & advances
• Record N2.9 trillion profit

Bamidele Famoofo

Four leading commercial banks in Africa’s most populous economy increased their balance sheet size to N115 trillion in nine months of the financial year ending December 31, 2024.

The lenders, Access Holdings Plc, FBN Holdings Plc, GTCO Plc and Zenith Bank jointly increased their assets portfolio by 56 per cent from N73.69 trillion as of nine months in 2022 to N114.58 trillion in nine months of 2023.

Access Bank Holdings emerged as the largest lender by asset base at N41.09 trillion compared to N26.69 trillion in the preceding financial year. Access Holdings recorded a 54 per cent growth in the balance sheet on a year-on-year basis.

Zenith Bank Plc was the second largest bank by asset base at N30.38 trillion as against N20.37 trillion as of September 30, 2022. The bank increased its fortune by 49.2 per cent year on year.

Occupying the third position among the four is FBN Holdings Plc with a balance sheet size of N27.49 trillion growing by 62.3 per cent year on year from N16.94 trillion in September 30, 2022.

GTCO Plc stands at N15.62 trillion as of September 30, 2023, compared with N9.69 trillion in nine months of 2022. The Holding Company boosted its asset base by 61.1 per cent in the review period.

The four lenders raked in a total of N6.96 trillion in the period with Access Holding Plc emerging the biggest gainer with N2.40 trillion, recording an increase of 128.7 per cent year on year. Zenith Bank was second on the list with N1.95 trillion, recording a growth of 190.2 per cent year on year.

FBNH Plc gained N1.63 trillion from Interest Income in the period, recording a growth of 164.6 per cent while GTCO raked -in N1.63 trillion from Interest Income, achieving 164 per cent growth year on year.

Financial Analysts have attributed the robust increase in Interest Income in the banking industry to the surge in interest rates and robust returns from fixed-income instruments. The Monetary Policy Committee has consistently increased Monetary Policy Rate ( MPR) in a bid to sustain its tightening measure on the economy to curb inflation. MPR, the base lending rate for banks stands at 27.25 per cent and there are indications by the Central Bank that the rate will increase further.

Meanwhile, GTCO emerged as the most profitable bank among the four with N1.09 trillion, increasing by 195.3 percent year on year while Zenith Bank increased its Profit after Tax by 90.5 per cent to N827.28 billion in the review period.  FBNH is in the top position with N526.28 billion, increasing by 124.9 per cent year on year. Access Holdings Plc emerged as the least profitable among the four with N457.75 billion, recording a growth of 82.8 per cent year on year. In all, the four banks recorded a total profit of N2.90 trillion.

Due to high inflation and increasing cost of energy among other factors, operating expenses of the lenders increased significantly in the review period with Access Holdings being the worst hit with N1.09 trillion, rising by 110 per cent year on year while FBNH followed with N676.82 billion representing a growth of 94.8 per cent year on year. Zenith Bank incurred an increase of 113.5 per cent in operating expenses to N656.07 billion. GTCO was the least on expenses with N294.68 billion, increasing by 61.3 per cent.

The lenders have continued to win despite the tough economic terrain in the country. It’s an irony that while Nigerians battle with the effects of inflation, deposits in banks have continued to increase.

Customer deposits in the four banks increased by 46.73 per cent from N48.56 trillion as of nine months of 2022 to N71.25 trillion in the same period in 2023.

Zenith was the biggest beneficiary with N21.57 trillion in its coffers in the review period compared with N15.17 trillion in nine months of 2022. The bank grew its deposits portfolio by 42.2 per cent year on year. Access Holdings being the second largest beneficiary, raked in N22.28 trillion from customers compared with N15.32 trillion in 2022. The bank’s deposits portfolio increased by 45.4 per cent year on year. FBNH and GTCO grabbed N16.72 billion and N10.68 trillion respectively from customers as against N10.66 trillion and N7.41 trillion in 2022.

There is a justification for increased deposits as the lenders increased lending to the economy to N33.65 trillion as against N23.44 trillion in nine months of 2022, increasing by 43.56 per cent.

Access Holdings Plc held a Loans and Advances portfolio of N11.86 trillion in the review period as against N8.04 trillion in the same period of 2022, representing an increase of 47.6 per cent. Zenith Bank’s loans to customers stood at N9.40 trillion from N6.56 trillion while FBNH followed closely at N9.37 trillion as against N6.36 trillion in 2022.