Six Banks Earn N3.9 Trillion In Six Months – Nigerian Exchange

The Nigerian Exchange Group (NGX) has said eight Deposit Money Banks generated about N3.9tn gross earnings in the first half of the 2023 financial period.

According to The Punch, the organisation made this known in the financial statements of the banks published on its website.

In its audited results for the half-year ended 30 June 2023, Zenith Bank recorded a growth of 139 per cent in gross earnings from N404.8bn reported in H1, 2022, to N967.3bn in H1, 2023.

The bank’s profit after tax also improved by 161.84 per cent to N291.7bn at the end of June 2023.

In H1, GTCO’s gross earnings rose to N672.603bn from N364.306bn, representing an 85 per cent increase.

The bank, in its audited consolidated and separate financial statements for the half-year period, which was filed by both the Nigerian Exchange Group and London Stock Exchange, said it recorded a profit after tax of N280.482bn in H1,23 from N77.557bn in the corresponding half of 2022.

United Bank for Africa delivered a 164 per cent growth in its gross earnings, which rose to N981.78bn as of June 2023, from N372.36bn recorded last year in June 2022.

According to the bank’s audited financial report, UBA recorded profit after tax of N378.24bn, representing an increase of 437.8 per cent over H1, 2022.

Nigeria’s oldest bank, First Bank’s gross earnings rose by 82.8 per cent to N656.6bn in H1, 2023 from N359.2bn in the same period of 2022.

The bank’s profit after tax increased to N174.9bn in H1, 2023, from N53.3bn a year earlier.

Other top-tier banks that recorded growth in gross earnings in the first half of the year included Wema Bank (N89.09bn), Fidelity Bank (N247.1bn), Sterling Holding, (N99.06bn) and FCMB (N238.2bn). Cumulatively, all eight banks raked in N3.9tn in the first six months of the year.

A further analysis of the banks’ financial statements showed that the record in the first half of the year was largely attributable to the devaluation of the naira that followed in the immediate aftermath of the CBN’s decision to float the local currency.

For example, Zenith Bank’s interest income grew by 72 per cent from N241.7bn in H1, 2022 to N415.4bn, while trading gains rose by 21 per cent to N103bn during this period.

The growth in interest income was attributed to the impact of both the growth and repricing of risk assets.

“The liberalisation of the foreign exchange market during the period spurred the growth in non-interest income as revaluation gains improved significantly,” the bank said.