By Chinwendu Obienyi
Despite daunting challenges in the Nigerian banking sector and the economy, five tier-1 banks in the country generated revenues to the tune of N9.51 trillion in the 2023 financial year.
Daily Sun analysis of the banks’ audited financial statements for the period under review showed that the banks include Access Holdings Plc, FBN Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc and Zenith Bank Plc.
According to economic analysts, this development underscores the resilience and potential of Nigeria’s banking sector, reflects a growing economy, increased financial activity and the banking sector’s crucial role in driving economic growth and development.
For instance, Access Holdings Plc’s gross earnings grew to N2.59 trillion from N1.389 trillion in 2022, representing 87 per cent increase. FBN Holdings earnings grew from N805.13 billion in the full year of 2022 to N1.52 trillion, representing 88.5 per cent growth while GTCO’s revenue grew by 120 per cent, from N539.24 billion to N1.187 trillion in 2023.
UBA’s revenue rose to N2.08 trillion in 2023 from N853.2 billion in 2022, representing 143 per cent increase whilst Zenith Bank recorded a 125.4 per cent increase in its revenue which stood at N2.13 trillion in the reporting period from N945.55 billion in 2022.
Further findings revealed that the five banks generated N2.75 trillion profit after tax in 2023, a growth of 224.4 per cent from N807.65 billion reported in 2022.
Reacting to the development, the Chief Executive Officers (CEOs) of the respective banks, stated that this reinforces the banks’ resolve to succeed and aid the economy despite the challenging operating environment which was affected by soaring inflation rate, hiked interest rates and volatile exchange rates.
The Managing Director/CEO, Access Bank, Roosevelt Ogbonna in a statement said, “As we reflect on the results of 2023, characterised by robust growth, strategic acquisitions and expansion into key trade hubs, I am excited about the prospects for Access Bank. Our relentless focus on customer-centricity, digital innovation and operational excellence has positioned us strongly to capitalise on emerging oppourtunities.
“As we enter the consolidation and efficiency phase of our Africa and international expansion strategy, we remain committed to driving sustainable growth, enhancing shareholder value, and delivering exceptional banking experiences to our customers across Africa and beyond.”
Also speaking, the Group Chief Executive Officer, GTCO, Segun Agbaje, noted that the challenging operating environment of 2023 truly tested the business model the board put in place for the holding company, for both our banking and non-banking business verticals.
Agbaje added that harnessing the Group’s synergies yielded a strong performance, allowing the company to strengthen its foothold in banking whilst also building viable and resilient businesses of HabariPay, Guaranty Trust Fund Managers, and Guaranty Trust Pension Managers.
He said, “Also important to our success is our relentless obsession with innovation and offering great customer experiences as demonstrated by the successful redesign and upgrade of our mobile banking application, GTWorld. In a landscape characterised by evolving regulatory reforms, global uncertainties and heightened competition, we have continued to leverage our inherent strengths and capabilities to unlock significant value, creating more opportunities for the businesses and individuals we serve.”
Speaking on what the banks’ results mean for the economy, analysts at Cordros Research said that banks play a crucial role in the economy and their revenues can have a significant impact on economic growth and stability.
They added that higher earnings for banks can also translate into increased tax revenues for the government.
“As banks’ profitability rises, they contribute more to the government’s tax coffers, which can be used for public infrastructure, services and development projects. Banks provide foreign exchange services and trade finance facilities to businesses engaged in international trade. This can promote exports, imports, and foreign direct investment, contributing to economic growth and global integration.
“We are impressed with the banks’ 2023 full year performances. Looking ahead into 2024, we are anticipating sustained profitability and we believe this based on the heightened interest rate environment.”