By Odunewu Segun
The banking sector led other 94 companies quoted on the Nigerian Stock Exchange in the first half of 2017, accounting for N2.59 trillion or 49.2 per cent of the overall turnover and N456.26 billion, representing 48 per cent of the overall profit before tax of all the companies.
National Daily gathered that First Bank, United Bank for Africa, Zenith Bank, Guaranty Trust Bank and Access Bank with a combined H1’17 earnings of N1.353 trillion, drove up the revenue profile of the 94 companies with the five banks accounting for 25.7 percent of the 94 companies’ combined revenue.
The banking sector outpaced others to lead profitability in absolute terms. At the end of the review period, the sector raked in N456.24 billion pre-tax profit compared to N370.64 billion in H1’16. This means that the 15 banks represented controlled 48 per cent (nearly half) of the combined pre-tax profit of the 94 leading companies in the NSE reviewed.
The industrial goods sector followed, posting N281.67 billion PBT against N122.57 billion in 2016, thereby accounting for 29.3 per cent of the overall PBT of all the companies.
The consumer goods sector was the third as the sector achieved N63.88 billion pre-tax profit in H1’17 against N14.11 billion in H1’16 and accounted for 6.7 per cent of the total PBT recorded by the companies in the half year period.
The banking sector, propelled by earning positions of Zenith Bank Plc, Ecobank Transnational Incorporated, Access Bank Plc, Stanbic IBTC Holdings Plc and UBA Plc, led others with N2.59 trillion revenue position.
Zenith Bank led other banks analysed in the sector, posting 77.1 per cent growth in revenue at N380.44 billion up from N214.81 billion in H1’16. This accounted for 14.7 per cent of the sector’s earnings. Access Bank and ETI placed second with 41.5 per cent revenue growth each. Access Bank recorded N246.58 billion against N174.01 billion in 2016, while ETI recorded revenue of N386.89 billion against N273.45 billion.
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Access and ETI contributed 9.5 per cent and 15 per cent to the sector’s total earnings respectively.
Stanbic IBTC’s PBT grew by 86 per cent to N29.17 billion from N15.68 billion, thereby contributing just 6.4 per cent to the sector’s profitability. Zenith Bank followed with 74.2 per cent increase, rising to N92.18 billion from N52.91 billion and accounted for 20.2 per cent of the sector’s PBT.
Fidelity Bank placed third with 66.7 per cent PBT growth to N10.22 billion from N6.13 billion, but accounted for mere 2.2 per cent of the banking sector’s profitability. UBA was the next with 65.5 per cent PBT growth to N57.53 billion from N34.76 billion, which represents 12.6 per cent of the banking sector’s profitability.
However, GT Bank Plc, which recorded N101.1 billion pre-tax profit, emerged the major contributor to the sector’s pre-tax profit in real term, contributing 22.2 per cent to the PBT.