Zenith Bank leads as Nigerian banks post over N5bn profits in H1 2022

Zenith Bank Plc led twelve other Nigerian Banks quoted on the Nigerian Exchange, accounting for 22 per cent of the total N501.13 billion as profit after tax by the banks in the first six months of 2022.

According to a review of the financial statements of the thirteen banks, the profits after tax by the banks outpaced the N443.17 billion recorded in the corresponding period of 2021 by 13.1 per cent.

Specifically, Zenith Bank, Access, and GT Bank recorded the highest post-tax profit in the review period, while FCMB and Wema Bank recorded the highest year-on-year profit growth.

Zenith Bank posted a net profit of N111.41 billion in the first half of the year, growing its profits by 5 per cent from N106.12 billion recorded in the first half of 2021.

The tier-one bank’s financial statement also revealed a 17.1 per cent growth in its gross earnings to N404.76 billion in the period under review. However, its operating expenses surged by 26.8 per cent year-on-year to N123.78 billion, while personnel expenses increased by 5.7% to N39.74 billion.

Meanwhile, tax expenses gulped a sum of N18.59 billion, which is 69.9% higher than the N10.94 billion spent in the corresponding period of last year.

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Access Bank came a distant second on the list with a profit after tax of N88.74 billion, which accounted for 18 per cent of the total profit posted by the banks under consideration.

The newly restructured company recorded a marginal 2.1 per cent growth in its net profit compared to N86.94 billion recorded in the corresponding period of 2021.

Access Bank grew its gross earnings by 31.4 per cent year-on-year to N591.8 billion, however, the surge in its operating expenses affected the growth of the bank’s profit.

Notably, personnel expenses increased by 33.9 per cent to N58.27 billion while other operating expenses surged by 40.2 per cent year-on-year to N176.71 billion.

GT Bank recorded a profit after tax of N77.58 billion between January and June 2022, representing 15% of the aggregate net profit posted by the thirteen banks. GT Bank however saw a 2.3% decline in its bottom line from N79.42 billion recorded in the corresponding period of 2021.

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The decline in the company’s bottom could be attributed to increases in operating and tax expenses. In the period under review, GT Bank spent a sum of N63.57 billion on operating expenses, 17% higher than the N54.34 billion incurred in the corresponding period of 2021.

The increase in its expense line dwarfed the 15.1% growth recorded in its total revenue, while personnel expenses increased by 7.6% year-on-year to N18.54 billion. Meanwhile, tax expenses surged by 88.3% to M25.69 billion in the review period.

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United Bank for Africa (UBA) recorded a post-tax profit of N70.33 billion in the first half of the year, a 16.1% increase compared to N60.58 billion posted in the corresponding period of 2021. UBA accounted for 14% of the total profit aggregate by the thirteen banks.

Notably, UBA recorded a 19.9% growth in its net interest income to N177.46 billion while fees and commission income improved by 30.9% to N59.92 billion in the same period. Meanwhile, personnel expenses surged by 22.7% to N52.29 billion, while other operating expenses increased by 22.6% to N96.57 billion.

Tax expenses on the other hand declined marginally by 1.2% to N15.42 billion in the first six months of the year.

First Bank posted a profit after tax of N56.6 billion in H1 2022, accounting for 11% of the total profit of the listed banks. In contrast to the previous comparable period, its net profit surged by 48.6% from N38.09 billion recorded in H1 2021.

First Bank also recorded a 47.3% growth in its net interest income to N152.91 billion as well as a marginal improvement of 1.7% in its net fees and commission’s income. Meanwhile, personnel expenses gulped N55.31 billion, an increase of 7.9% year-on-year, while operating expenses jumped by 32.7% to N116.78 billion.