Eight banks record N2.45trn gross earnings in 9 months

Not less than eight commercial banks listed on the Nigerian Stocks Exchange (NSE) have recorded a total of N2.45 trillion in gross earnings in nine months ended September 30, 2019.

This figure represents an increase of 10.4 per cent from N2.22 trillion declared in the corresponding period of 2018.

Access Bank Plc of the eight considered banks generated the highest gross earnings, followed by Zenith Bank Plc and FBN Holdings Plc.

Others are United Bank for Africa Plc (UBA), Guaranty Trust Bank plc (GTBank), Stanbic IBTC Holding, Wema Bank and Unity Bank Plc.

However, for the nine months under review, Access Bank’s gross earnings grew by 36.9 per cent to N513.7billion in nine months of 2019 from N375.2 billion in nine months of 2018

while Zenith Bank reported N491.3 billion in gross earnings, a 3.5 per cent increase from N491.3 billion reported in the prior nine months result and accounts submitted to the Nigerian Stock Exchange (NSE).

FBN Holdings for the nine months of 2019 generated N439.9 billion gross earnings. For United Bank for Africa Plc (UBA), reported an increase of 14.3 per cent in gross earnings to N428.2 billion in nine months of 2019 from N374.8 billion in nine months of 2018.

The Group Managing Director/CEO, UBA, Kennedy Uzoka, in a statement, said, “UBA remains committed to its vision of becoming the undisputed leading and dominant financial services institution in Africa.

“We will continue to innovate and lead in all our business segments, whilst delivering top-notch operational efficiencies and best-in-class customer service. We are beginning to realise early gains from our ongoing Transformation Program and I am indeed excited about the days ahead.”

Exception of Guaranty Trust Bank Plc (GTBank) that reported decline, others reported an increase in gross earnings.

The lender reported a 3.33 decline in gross earnings to N326 billion in nine months from N337.27 billion in the prior nine months.

Senate assures maritime sector of adequate funding

The lender with effective management improved on Profit Before Tax (PBT) that appreciated by nearly four per cent to N170.7 billion over N164.2billion recorded in the corresponding period of September 2018.

The Managing Director/CEO, GTBank, Mr. Segun Agbaje, said “The Bank’s 3rd quarter result reflects the strength of our franchise and the quality of our business strategy to deliver sustainable long-term value for our shareholders.

“Going into the final quarter of the year, we will continue to differentiate ourselves by maintaining a high standard in service delivery and leveraging our resources, expertise and network to enrich the lives of our customers.”

Meanwhile, Stanbic IBTC Holding grew gross earnings by 4.4 per cent to N176 billion from N168.8 billion in nine months of 2018 while Wema Bank reported N64.8 billion in gross earnings from N38.99 billion reported in nine months of 2019.

In addition, Unity Bank’s gross earnings increased significantly by 24 per cent to N10.7billion in nine months of 2019 from N8.6 billion reported in nine months of 2018.

Looking at the Profit After Tax (PAT) of the lenders, Access Bank recorded a 42.22 per cent increase in PAT to N90.73 billion in its unaudited financial statements for nine months, as against N62.9billion recorded in prior period in 2018, an indication that its merger with Diamond Bank is paying off.

The financial instruction’s Profit Before Tax (PAT) went up by 46.74per cent to N103.10 billion, compared to N70.26 billion recorded as at the end of the nine months ended September 2018.

Gross earnings increased 36.89per cent to N513.66 billion in nine months instead of N375.23 billion nine months of 2018, as Net Interest Income, rose 70.98per cent to N210.21 billion, driven by 85.36per cent rise in revenue from investment securities, against N122.94 billion generated in the corresponding period in 2018.

While fee and commission income climbed 49.52per cent to N56.01 billion in nine months of 2019, net foreign exchange income was up 117.41per cent to N5.15 billion from N29.58 billion loss in the same period in 2018 and other operating income increased 184.65 per cent to N33.26 billion.

However, net gains on investment securities dipped significantly 95.57per cent to N3.23 billion in nine months of 2019 from N75.10 billion in nine months of 2018.

While commenting on the bank half-year audited results, the GMD/CEO, Access Bank, Herbert Wigwe, said the group’s inaugural post-merger audited report recorded a strong performance, notwithstanding the slow and untenable macro environment.

According to him, “Going into the second half of the year, our focus is on consolidating our retail momentum, driving access to financial inclusion through our various agency initiatives.

“Additionally, we will remain disciplined in our efforts to deliver enhanced shareholder value, as we continue to realise the synergies from our newly expanded franchise.”

The bank made a 27.02 per cent higher impairment provision on loan losses of N10.61 billion, while personnel and rent expenses and other operating cost increased 25.39per cent and 47.70per cent respectively during this period.

The commercial lender gave out 37.53per cent more loans and advances worth N2.94 trillion and raked in deposits that was 65.27per cent higher to N4.24 trillion, as its total assets increased 33.35per cent to N6.61 trillion and total liabilities was up 34.23per cent to N5.99 trillion.

The bank’s earnings per share stood at N2.79 as at the end of the nine months of 2019 compared N2.18 in nine months of 2018.