Despite the country’s apparent economic difficulties, Nigerian banks have been seen to be performing admirably and are expected to double their profits by the end of the year.
According to analysts, certain banks’ aggressive development in the nation, Africa, and other regions of the world appears to have sparked conversation.
United Bank for Africa, Zenith Bank, Access Holdings, and GTCO are notable examples of these banks.
According to a survey by banks, aggressive business expansion, careful risk management, and a variety of markets that lessen the impact of domestic issues are the key drivers of ongoing profitability.
The majority of banks were built on strong information and communication technology (ICT) investments, with digital banking significantly boosting revenue and profitability.
With four subsidiaries—Access Bank Plc, Access Insurance Brokers Limited, Access Pensions Limited, and Hydrogen Payment Services Company Limited—Access Holdings, a financial holding company, has N36.6 trillion in total assets as of the end of September 2024. As the bank benefited greatly from its technology-led initiatives aimed at improving customer experience over the past few years, UBA continues to maintain a very strong balance sheet, with total assets rising to N31.801 trillion, representing a 54.0 percent increase over the N20.653 trillion recorded at the end of December 2023. Additionally, total deposits increased to N26.50 trillion, representing a 52.7 percent rise, up from N17.355 trillion at the end of the previous fiscal year.
Customer deposits, which increased by 42% to N21.6 trillion, were a major contributor to Zenith Bank’s 49% increase in total assets to N30.4 trillion.
Maintaining its strength, the capital adequacy ratio increased to 21.9 percent, far higher than the required level. During the year under review, GTCO’s total assets increased from N9.691 trillion to N15.615 trillion.
Notably, Access Holdings became the financial institution with the biggest turnover during the reviewed period, with gross earnings of N3.415 trillion for the nine-month period.
With stated gross earnings of N2.939 trillion for the nine-month period, Ecobank Transnational Incorporated ranks second in terms of turnover.
With gross earnings of N2.9 trillion, N2.478 trillion, N2.398 trillion, and N1.798 trillion, respectively, Zenith, FBNH, UBA, and GTCO came in third, fourth, fifth, and sixth place.
Fidelity Bank (N772.465 billion), Stanbic IBTC (N650.703 billion), Wema Bank (N289.117 billion), and Sterling (N237.161 billion) are among the banks with turnovers below the N1 trillion threshold. For the reviewed period, GTCO had the highest profit after taxes. The bank’s profit for the nine months was N1.085 trillion. Zenith Bank comes in second place with a N827.277 billion profit after taxes.
FBNH is ranked third with a profit after tax of N533.877 billion for the nine-month period.
UBA, Ecobank, and Access Holdings rank fourth, fifth, and sixth, respectively, with profit after tax of N525.313 billion, N491.879 billion, and N457.746 billion.
In the third quarter of 2024, Ecobank recorded gross earnings of N2.939 trillion, up 145.92 percent from N1.195 trillion the year before, making it the leader in turnover growth. FBNH ranks second in terms of turnover growth.
Over the course of nine months, the bank’s gross earnings came to N2.478 trillion.
Compared to the N1.059 trillion earned the year before, this represents a 133.95% increase. When it came to turnover growth, Zenith Bank came in third.
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The bank’s nine-month gross earnings of N2.9 trillion represented a 118.17% increase over the N1.329 trillion reported the year before. In terms of turnover growth, Access Holdings is ranked fourth.
The nine-month period’s gross earnings of N3.415 trillion represented a 114.31 percent increase over the N1.593 trillion reported the year before.
With gross earnings of N1.798 trillion, up 111.47 percent from N850.333 billion the year before, GTCO came in fifth place in terms of turnover growth. UBA stated that it will be growing its operations and investments in Africa in the future.
With an ongoing effort to establish a subsidiary in Saudi Arabia, the region’s largest economy, the bank also intends to grow in the Middle East.
After expanding to the United Arab Emirates in 2022, this move, which is anticipated to take place within the next year, would establish the bank’s second subsidiary in the Gulf region.
During a panel discussion at the 8th Future Investment Initiative (FII) in Riyadh, Saudi Arabia, UBA’s Group Deputy Managing Director, Muyiwa Akinyemi, revealed this information. He emphasized the bank’s strategic commitment to supporting Africa’s growth through the development of infrastructure, the empowerment of young people, and long-term partnerships in important international markets.
“The next step for us in connecting the Africa-Gulf region is opening a presence in Saudi Arabia,” he stated.
We are thrilled to introduce UBA’s financial services experience to Saudi Arabia, where we hope to foster strong economic ties and information sharing.
We will also have access to Saudi knowledge in sustainable practices, energy transition, and food security through this endeavor, all of which are vital to Africa’s ongoing progress.
He stated, “Africa’s infrastructure deficit is an opportunity for investors worldwide,” while highlighting the continent’s significance as a crucial location for long-term capital investments.
Africa must be in their investment horizon, as we emphasize in our presentation to the Gulf and Southeast Asia. As our population grows, food security is becoming increasingly important.
By the first quarter of 2026, Access Bank anticipates that its development across the continent and other regions of the world will be on track, just as it is in the United States.
“We will have Access Bank USA,” said Roosevelt Ogbonna, Group Managing Director of Access Bank.
We intend to enter the US market. We will deal with many counterparties that operate globally, participate in global discussions, and be in the worldwide market.
He stated that Access Bank must make use of trade and payments on the continent if it hopes to participate in important areas. Thus, we have initiated what we call an aggregator strategy.
Being a Pan-African bank with no influence is pointless. Therefore, it is evident to us that we must compete locally and establish dominance in every market. Eight of the 19 markets that will exist on the continent by 2027 will be among the top three banks. Eleven of these markets will be in the top five banks, and fifteen of these markets will be in the top ten,” he said.
“There must be a local bank, a local African bank that is local in every market that takes significant advantage of those opportunities in African free trade,” he added, in response to the withdrawal of foreign banks.
In addition to Nigeria, GTCO operates banking subsidiaries in Ghana, Liberia, Kenya, Rwanda, Tanzania, Uganda, Sierra Leone, Gambia, Cote d’Ivoire, and the United Kingdom. Additionally, Ghana, Sierra Leone, and The Gambia are home to Zenith Bank subsidiaries.
