Banks had a steady growth in assets in the nine months ended September 30, despite dwindling earnings.
Third quarter (Q3) financial reports filed with the Nigerian Stock Exchange (NSE) showed consistent growth trajectory against macroeconomic challenges.
A total 14 banks listed on the NSE recorded N28 trillion in total assets, with loans and advances and customers’ deposits as two major drivers.
This amount represents an increase of N1.17 trillion or 4 per cent compared with N27.27 trillion recorded by the same 14 banks on December 31, 2014.
Ecobank Transnational Incorporated (ETI) and First Bank of Nigeria Holdings (FBNH) were the only ones with over N4 trillion in total assets in Q3.
ETI, a pan African lender, had the highest assets of N4.65 trillion in Q3, from N3.8 trillion, representing 21 per cent growth. Loans and advances contributed 49 per cent and customers’ deposits 68.8 per cent.
However, the assets of FBNH dipped 1 per cent to N4.3 trillion, from N4.34 trillion. Customers’ deposits dropped by N51.3 billion and loans and advances by N270 billion.
Zenith is the only bank with over N3 trillion in assets, rising from N3.75 trillion to N3.8 trillion.
Three Tier-I banks recorded over N2 trillion in assets.
The United Bank of Africa (UBA) led the charts with 4 per cent rise, from N2.76 trillion to N2.87 trillion.
Guaranty Trust Bank (GTBank) with 4 per cent increase, from N2.35 trillion to N2.46 trillion.
And Access Bank gained 14 per cent to N2.4 trillion, up from N2.76 trillion.
Five banks – Diamond, Fidelity, Skye, Union, and Stanbic IBTC Holdings – crossed the N1 trillion mark in assets base.
The assets of Diamond Bank declined 9 per cent, from N1.9 trillion in December 2014 to N1.77 trillion in September 2015.
Those of Fidelity Bank dropped 2 per cent, from N1.187 trillion to N1.159 trillion.
Skye Bank’s assets value dipped 7 per cent to N1.3 trillion from N1.4 trillion.
Union Bank gained 7 per cent to N1.08 trillion, up from N1 trillion in December 2014.
Stanbic IBTC Holdings notched 6 per cent, from N944.5 billion to N1 trillion.
Those with assets base below N1 trillion are Sterling Bank, Unity Bank, and Wema Bank.
Of these three Tier- II banks, Sterling Bank has the largets assets of N792.5 billion, declining from N824.5 billion.
Unity Bank gained 6 per cent from N413 billion to N440 billion; Wema Bank’s dropped to N350.6 billion from N382.6 billion.
Banks’ growth in total assets would not have been possible without the 2005 banking sector reform.
Before the reform, the largest Nigerian banks were only a fraction of the size of the top five in South Africa, and there was no Nigerian bank in the top 20 on the continent.
Today, however, six Nigerian banks – GTB, Access, First Bank, Ecobank, UBA, and Zenith – are among the top 20 in Africa.
Besides, they have branches spread from Senegal to Kenya and from London to South Africa.
